1 00:00:06,320 --> 00:00:08,799 Speaker 1: This is the weekend edition of Fear and Greed, daily 2 00:00:08,840 --> 00:00:11,239 Speaker 1: business news for people who make their own decisions. I'm 3 00:00:11,240 --> 00:00:13,560 Speaker 1: Michael Thompson, and good morning Sean. Aylmer. 4 00:00:13,840 --> 00:00:15,680 Speaker 2: Good morning, Michael, Sean. 5 00:00:15,880 --> 00:00:18,279 Speaker 1: Our weekend show is all about the two of us, 6 00:00:18,400 --> 00:00:21,840 Speaker 1: each nominating what we think is the biggest business story 7 00:00:21,880 --> 00:00:26,000 Speaker 1: of the week, the most remarkable business story, the sleeper 8 00:00:26,640 --> 00:00:28,880 Speaker 1: business story. Business kind of feel a little bit redundant. 9 00:00:28,880 --> 00:00:30,480 Speaker 1: Now I've said it so many times, but a sleeper 10 00:00:30,480 --> 00:00:32,199 Speaker 1: story is kind of one that's flying under the radar 11 00:00:32,280 --> 00:00:34,480 Speaker 1: a little bit, maybe going to be a bigger story 12 00:00:34,520 --> 00:00:35,200 Speaker 1: further down the track. 13 00:00:35,320 --> 00:00:37,920 Speaker 2: Having said that, having said that, quite often your stories 14 00:00:37,960 --> 00:00:41,080 Speaker 2: have little to do with business, well. 15 00:00:40,880 --> 00:00:42,960 Speaker 1: That's actually why I thought I'd better just drop business 16 00:00:42,960 --> 00:00:46,360 Speaker 1: altogether from it, because otherwise it sets up unrealistic expectations 17 00:00:46,400 --> 00:00:49,640 Speaker 1: of what I'm going to be offering. And of course 18 00:00:49,640 --> 00:00:53,080 Speaker 1: it's a very competitive environment, and we needed an adjudicator, 19 00:00:53,120 --> 00:00:57,040 Speaker 1: and every week our judge is our Fear and Greed colleague, 20 00:00:57,080 --> 00:00:59,280 Speaker 1: Adam Lang Adam, good morning. 21 00:00:59,160 --> 00:01:01,040 Speaker 3: Good morning, my colin. Good morning, Sean. 22 00:01:01,280 --> 00:01:02,960 Speaker 1: What are you expecting this morning, Adam? 23 00:01:03,120 --> 00:01:03,320 Speaker 2: Oh? 24 00:01:03,520 --> 00:01:06,600 Speaker 3: Bare knuckle fighting, you know, in a verbal sense of course, 25 00:01:08,640 --> 00:01:13,560 Speaker 3: spirited competition and only one winner. I'm deferring away from 26 00:01:13,680 --> 00:01:14,480 Speaker 3: draws today. 27 00:01:15,480 --> 00:01:18,800 Speaker 1: And are you expecting any melodrama? 28 00:01:19,480 --> 00:01:21,440 Speaker 3: That's a rhetorical question, isn't it. 29 00:01:22,200 --> 00:01:25,199 Speaker 1: Indeed it is, yes, I am Michael. Very quickly, would 30 00:01:25,200 --> 00:01:27,520 Speaker 1: you like to just give us your, say, twenty seconds 31 00:01:27,600 --> 00:01:28,920 Speaker 1: or less, your criteria? 32 00:01:29,080 --> 00:01:31,840 Speaker 3: Okay, it's like that big Mac challenge where you've got 33 00:01:31,880 --> 00:01:35,360 Speaker 3: to recite all the ingredients really quickly. Right, So here 34 00:01:35,400 --> 00:01:41,760 Speaker 3: I go melodrama, topicality, timeliness, economic impact, and my own 35 00:01:41,800 --> 00:01:43,279 Speaker 3: subjective bias. 36 00:01:43,640 --> 00:01:46,160 Speaker 2: What is interesting there, Adam, is that you suddenly put 37 00:01:46,200 --> 00:01:49,960 Speaker 2: melodrama number one. Until this week, it's always been four 38 00:01:50,080 --> 00:01:54,200 Speaker 2: or five. Last today you came up with melodrama number one, Michael, 39 00:01:54,400 --> 00:01:55,640 Speaker 2: which it augurs. 40 00:01:55,720 --> 00:02:00,160 Speaker 1: Well, if I'm honest, that's where it belongs, because the 41 00:02:00,240 --> 00:02:03,000 Speaker 1: night with the right dose of melodrama, you can quite 42 00:02:03,040 --> 00:02:12,920 Speaker 1: effectively disguise a lack of depth. That's so confessional, sean 43 00:02:13,040 --> 00:02:15,639 Speaker 1: biggest story of the week. Would you like to go first? 44 00:02:16,480 --> 00:02:19,919 Speaker 2: Thank you, Michael. I have no melodrama this week. I'm 45 00:02:19,919 --> 00:02:22,720 Speaker 2: feeling how, I dont know pretty There's just so much 46 00:02:23,160 --> 00:02:30,280 Speaker 2: serious stuff going on, including the fact we are a business. 47 00:02:30,520 --> 00:02:33,320 Speaker 2: We are a business podcast. Let's keep that in mind, 48 00:02:34,200 --> 00:02:36,120 Speaker 2: including the fact that the Reserve Being Board left the 49 00:02:36,120 --> 00:02:39,639 Speaker 2: benchmark cash rate at four point three five percent. However, 50 00:02:39,880 --> 00:02:42,240 Speaker 2: the big news out of that was it sharply revised 51 00:02:42,320 --> 00:02:46,160 Speaker 2: upwards its inflation forecast, warning that the pace of price 52 00:02:46,200 --> 00:02:49,280 Speaker 2: growth isn't falling as fast as hoped. The Board expects 53 00:02:49,280 --> 00:02:52,359 Speaker 2: that it will be some time before inflation is sustainably 54 00:02:52,400 --> 00:02:54,959 Speaker 2: in the target range, sometime in the middle of next 55 00:02:55,000 --> 00:02:58,320 Speaker 2: year or later. And the Bank isn't ruling anything in 56 00:02:59,200 --> 00:03:02,520 Speaker 2: or out. For most of us, the mortgage or credit 57 00:03:02,560 --> 00:03:05,640 Speaker 2: card debt, or car lane or something like that. It 58 00:03:05,720 --> 00:03:08,959 Speaker 2: means we'll keep paying these twelve year high interest rates 59 00:03:08,960 --> 00:03:12,560 Speaker 2: for the foreseeable future, and economists reckon it will be 60 00:03:12,600 --> 00:03:15,440 Speaker 2: for at least the rest of this year. I think 61 00:03:15,480 --> 00:03:18,440 Speaker 2: that's really what we found out this week is that 62 00:03:18,520 --> 00:03:21,280 Speaker 2: for the rest of this year rates. 63 00:03:21,040 --> 00:03:22,639 Speaker 1: Aren't going to change. 64 00:03:23,040 --> 00:03:26,840 Speaker 2: One thing to take away from the Reserve Bank Board 65 00:03:26,880 --> 00:03:29,920 Speaker 2: meeting was that the statement that came out with it 66 00:03:29,960 --> 00:03:33,040 Speaker 2: wasn't quite as hawkish or downbeat on getting inflation under 67 00:03:33,080 --> 00:03:36,320 Speaker 2: control as some has expected, kind of kept to its 68 00:03:36,360 --> 00:03:38,960 Speaker 2: neutral tone in the statement. Now in the press conference afterwards, 69 00:03:39,040 --> 00:03:42,800 Speaker 2: Governor Michelle Bullet, perhaps a little more downbeat, hawkish, however 70 00:03:42,800 --> 00:03:45,560 Speaker 2: you want to put it. I mentioned at the beginning 71 00:03:45,880 --> 00:03:48,440 Speaker 2: the inflation numbers. It's up to CPI forecast to the 72 00:03:48,520 --> 00:03:50,400 Speaker 2: end of June to three point eight percent. That's quite 73 00:03:50,440 --> 00:03:53,520 Speaker 2: a jump. It was three point three percent. The issue 74 00:03:53,520 --> 00:03:59,280 Speaker 2: there is sticky services inflation SSI. Sticky services inflation. That 75 00:03:59,360 --> 00:04:01,040 Speaker 2: isn't an accurn that anyone else has ever used, but 76 00:04:01,080 --> 00:04:04,640 Speaker 2: I'm going to throw it in there. Things like rent, insurance, education, 77 00:04:05,000 --> 00:04:07,800 Speaker 2: stuff like that. Stuff that you've got to buy. It's 78 00:04:07,800 --> 00:04:11,280 Speaker 2: really hard to get those prices down. Basically, the bottom 79 00:04:11,280 --> 00:04:14,640 Speaker 2: line to all this is certainly the timing of any 80 00:04:14,800 --> 00:04:18,520 Speaker 2: rate cut has been pushed out, but the consensus among 81 00:04:18,560 --> 00:04:21,520 Speaker 2: economists is that the next move will be down, but 82 00:04:21,560 --> 00:04:25,320 Speaker 2: not for a while. Big story this week, Michael, I 83 00:04:25,360 --> 00:04:26,440 Speaker 2: feel sorry for hawks. 84 00:04:26,960 --> 00:04:30,960 Speaker 1: There's probably plenty of very gentle, peace loving hawks out 85 00:04:31,000 --> 00:04:34,279 Speaker 1: there just trying to just circling around paddocks looking for 86 00:04:34,320 --> 00:04:36,960 Speaker 1: a mouse. Things like this, or maybe the vegetarian they 87 00:04:36,960 --> 00:04:39,719 Speaker 1: don't even kill nice. I don't know what about sharks, 88 00:04:40,200 --> 00:04:40,800 Speaker 1: shouldn't it be. 89 00:04:40,800 --> 00:04:43,640 Speaker 2: I feel Adam that sometimes when there is a big 90 00:04:43,680 --> 00:04:46,600 Speaker 2: story like the economy. Michael just sort of jumps in 91 00:04:46,720 --> 00:04:50,200 Speaker 2: the tys to divert all semblance of sensibility. 92 00:04:50,440 --> 00:04:53,560 Speaker 3: Yeah, usually it's an airplane, like, look, there's an airplane, 93 00:04:53,600 --> 00:04:55,359 Speaker 3: but today he's gone with a hawk. 94 00:04:55,800 --> 00:04:58,520 Speaker 1: Yeah. What about something that is really aggressive, like an 95 00:04:58,839 --> 00:05:03,159 Speaker 1: Eastern brown, So you could say that Governor Michelle Bullock, 96 00:05:03,880 --> 00:05:07,799 Speaker 1: like Governor Michelle Bullock was in the press conference afterwards, 97 00:05:07,920 --> 00:05:10,880 Speaker 1: was a little more Eastern brown snakeish that that feels 98 00:05:10,920 --> 00:05:12,239 Speaker 1: like it's kind of got. 99 00:05:12,080 --> 00:05:14,200 Speaker 3: More uniquely Australian, Yes. 100 00:05:14,080 --> 00:05:16,719 Speaker 1: Yeah, or Taipan it was a bit more Taipean. Is okay, 101 00:05:16,920 --> 00:05:17,479 Speaker 1: that'll work. 102 00:05:17,600 --> 00:05:21,640 Speaker 2: But type is more dangerous than the brown snake. 103 00:05:22,400 --> 00:05:25,440 Speaker 1: Well, the inland type, in which is a variety of 104 00:05:25,560 --> 00:05:30,520 Speaker 1: the of taipe end is in fact the deadliest snake 105 00:05:30,600 --> 00:05:33,000 Speaker 1: in the world in terms of the number, yeah, in 106 00:05:33,080 --> 00:05:35,640 Speaker 1: terms of the potency of its venom and things. But 107 00:05:36,080 --> 00:05:39,240 Speaker 1: it's less perhaps you would say, less dangerous than say 108 00:05:39,240 --> 00:05:42,279 Speaker 1: you're Eastern brown, because they're actually confined to quite a 109 00:05:42,400 --> 00:05:45,719 Speaker 1: small part of Australia and they're quite shy. They don't 110 00:05:45,720 --> 00:05:48,359 Speaker 1: come into contact with people that often, so therefore they're 111 00:05:48,440 --> 00:05:50,600 Speaker 1: they're considered to be less dangerous even though they are 112 00:05:50,640 --> 00:05:51,919 Speaker 1: more deadly. There you go. 113 00:05:52,360 --> 00:05:54,719 Speaker 2: So the funding that goes into the health system because 114 00:05:54,720 --> 00:05:56,920 Speaker 2: of the Eastern Brown is far greater than the funding 115 00:05:56,920 --> 00:05:58,560 Speaker 2: that goes into the health system. I'm just trying to 116 00:05:58,560 --> 00:06:01,440 Speaker 2: bring it back to economics or business or something vaguely 117 00:06:01,560 --> 00:06:04,280 Speaker 2: you've done it. I mean, this is all about the budget, Mike. 118 00:06:04,320 --> 00:06:08,320 Speaker 1: I presume well, in fact, Sean, you're right because this 119 00:06:08,440 --> 00:06:11,479 Speaker 1: is and this might sound a little unorthodox, that I'm 120 00:06:11,480 --> 00:06:15,119 Speaker 1: nominating my biggest story this week as something that hasn't 121 00:06:15,160 --> 00:06:16,160 Speaker 1: actually happened yet. 122 00:06:19,720 --> 00:06:21,640 Speaker 3: Are you sure before you go on, Michael, are you 123 00:06:21,720 --> 00:06:23,400 Speaker 3: sure this is the right category. 124 00:06:23,640 --> 00:06:27,040 Speaker 1: Yes, I'm not going to suggest that it's a sleeper story. 125 00:06:27,040 --> 00:06:30,800 Speaker 1: But the fact is that the federal budget's happening in 126 00:06:30,800 --> 00:06:33,880 Speaker 1: a couple of days time. But the thing is with budgets, 127 00:06:34,040 --> 00:06:37,520 Speaker 1: there is very little left unknown by the time Tuesday 128 00:06:37,600 --> 00:06:40,120 Speaker 1: night rolls around. So really it's kind of almost just 129 00:06:40,120 --> 00:06:43,440 Speaker 1: a symbolic thing, the Tuesday budget. I think that we 130 00:06:43,440 --> 00:06:46,040 Speaker 1: can actually almost lead the way on this and declare 131 00:06:46,200 --> 00:06:48,440 Speaker 1: we can break the news that the budget was in 132 00:06:48,480 --> 00:06:51,520 Speaker 1: fact the biggest story of the week the week before 133 00:06:51,800 --> 00:06:55,440 Speaker 1: it comes out, because the week's start every day this week. 134 00:06:55,480 --> 00:06:58,560 Speaker 1: There is many more budget news right. The week started 135 00:06:58,560 --> 00:07:01,520 Speaker 1: with a major story on the indexation of hexdet now 136 00:07:01,560 --> 00:07:04,599 Speaker 1: being tied to either inflation or wages growth, whichever is lower. 137 00:07:05,200 --> 00:07:07,640 Speaker 1: And that's big. That has a big economic impact because 138 00:07:07,640 --> 00:07:09,560 Speaker 1: it's been backdated to last year. It's going to see 139 00:07:09,560 --> 00:07:13,160 Speaker 1: three point two billion dollars white from hex debt. Massive, massive, 140 00:07:13,160 --> 00:07:16,720 Speaker 1: and Adam, I'm very glad that you're sitting down right 141 00:07:16,760 --> 00:07:20,280 Speaker 1: now because we already know. We found out this week 142 00:07:20,280 --> 00:07:24,400 Speaker 1: that the budget is going to contain meaningful tax reform. 143 00:07:24,880 --> 00:07:31,080 Speaker 1: I think tax breaks, tax break, tax breaks for businesses, 144 00:07:31,080 --> 00:07:34,320 Speaker 1: in line with the future Made in Australia strategy. Big story. 145 00:07:34,880 --> 00:07:37,480 Speaker 1: Even if we don't have all the details yet, even 146 00:07:38,240 --> 00:07:41,120 Speaker 1: the bare mention of tax reform is enough in your 147 00:07:41,120 --> 00:07:44,240 Speaker 1: case to get the pulse racing. And there's plenty of 148 00:07:44,280 --> 00:07:47,640 Speaker 1: other reform too. You've got significant funding of government services 149 00:07:47,640 --> 00:07:51,679 Speaker 1: to address customer backlogs, modernized digital infrastructure, ninety million dollars 150 00:07:51,680 --> 00:07:54,200 Speaker 1: to train more apprentices, a bunch of other measures to 151 00:07:54,200 --> 00:07:57,040 Speaker 1: help deal with chronic housing shortages. More relief for the 152 00:07:57,080 --> 00:07:59,720 Speaker 1: cost of living, including support for those who don't benefit 153 00:07:59,760 --> 00:08:04,480 Speaker 1: from Stage three tax cuts, think pensioners. Fixed income. There 154 00:08:04,520 --> 00:08:06,880 Speaker 1: are concerns obviously, as he'd expected any's spending to help 155 00:08:06,920 --> 00:08:11,360 Speaker 1: those who are struggling could potentially have an effect on inflation. Adam, Adam, 156 00:08:11,880 --> 00:08:15,720 Speaker 1: the budget is huge. The budget is vast. The budget 157 00:08:15,800 --> 00:08:19,800 Speaker 1: is mighty in its impact on business, on taxpayers, the 158 00:08:19,840 --> 00:08:23,320 Speaker 1: broader public. So I'm sure that Treasurer Jim Chalmers, who 159 00:08:23,360 --> 00:08:26,520 Speaker 1: is more likely than not to be a listener to 160 00:08:26,600 --> 00:08:30,880 Speaker 1: this podcast on bod basis, I have no proof whatsoever 161 00:08:31,000 --> 00:08:32,559 Speaker 1: of that. It just kind of feels like the kind 162 00:08:32,559 --> 00:08:33,960 Speaker 1: of thing that he would listen to. In which case, 163 00:08:33,960 --> 00:08:35,640 Speaker 1: treasure I'm sorry you had to listen to all of 164 00:08:35,679 --> 00:08:38,640 Speaker 1: that nonsense about tipe hands before. But I'm sure he'll 165 00:08:38,640 --> 00:08:42,560 Speaker 1: be very pleased to learn that his budget is the 166 00:08:42,600 --> 00:08:45,760 Speaker 1: biggest story of the week, even before he's handed it down. 167 00:08:46,960 --> 00:08:51,360 Speaker 3: Adam. Okay, do you get the feeling we're in a 168 00:08:51,360 --> 00:08:52,400 Speaker 3: build up to an election? 169 00:08:52,720 --> 00:08:53,120 Speaker 1: Michael? 170 00:08:53,280 --> 00:08:58,080 Speaker 3: I do three year election term one year ago till 171 00:08:58,080 --> 00:09:01,800 Speaker 3: the election has to be held. Yeah, budget leaks they're 172 00:09:01,840 --> 00:09:06,600 Speaker 3: definitely happening, but encomposite, while they are all really good stories, 173 00:09:06,640 --> 00:09:09,480 Speaker 3: they're just not as big as the inflation forecast being 174 00:09:09,520 --> 00:09:14,000 Speaker 3: revised upward. It's just the narrow victory to Sean on 175 00:09:14,080 --> 00:09:17,199 Speaker 3: this one. He has to win. And God, I hope 176 00:09:17,240 --> 00:09:21,280 Speaker 3: the RBA forecast is wrong. I hope inflation does come 177 00:09:21,320 --> 00:09:22,040 Speaker 3: down more quickly. 178 00:09:23,240 --> 00:09:26,400 Speaker 2: So I didn't want to say anything, but I'm going 179 00:09:26,440 --> 00:09:28,520 Speaker 2: to because you've made your pronouncement. 180 00:09:28,520 --> 00:09:28,800 Speaker 1: Thank you. 181 00:09:29,720 --> 00:09:31,679 Speaker 2: I just reckon that this is a really boring budget. 182 00:09:31,920 --> 00:09:34,719 Speaker 2: So all that stuff, right, I just don't think they're 183 00:09:34,720 --> 00:09:37,000 Speaker 2: going to do much. I mean, I know you listed 184 00:09:37,000 --> 00:09:39,400 Speaker 2: a bunch of ninety million dollar things in a seven 185 00:09:39,480 --> 00:09:43,400 Speaker 2: hundred fifi dollar Yeah, very exciting stuff. But I just 186 00:09:43,480 --> 00:09:47,840 Speaker 2: I actually don't think. In fact, I'm going generous of me. 187 00:09:48,360 --> 00:09:50,240 Speaker 2: You can do the budget next week, Michael is the 188 00:09:50,240 --> 00:09:50,880 Speaker 2: biggest story. 189 00:09:51,000 --> 00:09:55,480 Speaker 1: Oh that's good, it's yours. It is so generous. 190 00:09:55,480 --> 00:09:57,640 Speaker 2: Shot, it's generousous. 191 00:09:58,120 --> 00:10:00,200 Speaker 1: If it's really boring, perhaps I'll do it as my 192 00:10:00,240 --> 00:10:04,080 Speaker 1: sleeper story. You know what happened this week? 193 00:10:04,120 --> 00:10:04,400 Speaker 3: Guys? 194 00:10:04,480 --> 00:10:06,040 Speaker 1: The budget, but no one really can. 195 00:10:06,480 --> 00:10:11,960 Speaker 3: Yeah, and Michael, the meaningful tax reform meaningful. The word 196 00:10:12,040 --> 00:10:14,840 Speaker 3: is subjective, isn't it, So we'll see how meaningful it 197 00:10:14,960 --> 00:10:15,640 Speaker 3: ends up being. 198 00:10:16,559 --> 00:10:18,640 Speaker 1: I still think I was ripped off to have lost 199 00:10:18,720 --> 00:10:21,920 Speaker 1: just then, considering the two main features of your story, 200 00:10:21,960 --> 00:10:25,080 Speaker 1: Sean were that rates were on hold and they were 201 00:10:25,120 --> 00:10:28,760 Speaker 1: maintaining a neutral tone, both of which kind of imply 202 00:10:28,880 --> 00:10:30,320 Speaker 1: that very little actually happened. 203 00:10:30,360 --> 00:10:32,920 Speaker 2: But I recognize ripped off because the only one that narrowly, 204 00:10:34,120 --> 00:10:36,440 Speaker 2: because your story was about something that hasn't happened. 205 00:10:36,960 --> 00:10:41,040 Speaker 1: Yeah, I'm actually quite amazed by that as well. I'd 206 00:10:41,080 --> 00:10:43,079 Speaker 1: love to not just how narrow it was. Let's move 207 00:10:43,120 --> 00:10:46,480 Speaker 1: on to most remarkable story, and I'm going to go 208 00:10:46,520 --> 00:10:51,720 Speaker 1: first on this one. Go for it this week, really, 209 00:10:52,000 --> 00:10:54,000 Speaker 1: when you assessed that, when you take a step back 210 00:10:54,080 --> 00:10:58,800 Speaker 1: and look just gaze upon the days leading up to this, God, 211 00:10:58,840 --> 00:11:00,760 Speaker 1: I'm a wanker sometimes. 212 00:11:04,600 --> 00:11:07,199 Speaker 2: What I love it is it we sit here and 213 00:11:07,520 --> 00:11:10,400 Speaker 2: you start talking, and Adam and I just sort of 214 00:11:10,440 --> 00:11:12,680 Speaker 2: glance at each other, and it's like he's off again. 215 00:11:12,800 --> 00:11:17,200 Speaker 1: Let him go, And for once, for once, I joined 216 00:11:17,200 --> 00:11:21,160 Speaker 1: with you. I voiced, I gave voice to what you 217 00:11:21,200 --> 00:11:25,200 Speaker 1: were both thinking. But this was a remarkable week for 218 00:11:25,280 --> 00:11:28,400 Speaker 1: what I'm going to class just as a general overall 219 00:11:28,440 --> 00:11:32,800 Speaker 1: and umbrella term of corporate rehabilitation. But in reality, in reality, 220 00:11:32,840 --> 00:11:34,800 Speaker 1: it's just a way to combine two big stories into 221 00:11:34,840 --> 00:11:38,360 Speaker 1: one and double my chances of winning. OP just got 222 00:11:38,360 --> 00:11:41,480 Speaker 1: a new CEO, Stephen Rue who's currently the head of 223 00:11:41,679 --> 00:11:45,400 Speaker 1: nbn CO jumping ship very slowly if you picture him 224 00:11:45,440 --> 00:11:48,360 Speaker 1: jumping ship from the NBNC into the water and just slowly, slowly, 225 00:11:48,400 --> 00:11:51,199 Speaker 1: slowly drifting his way over to Australia's number two Tellco 226 00:11:51,240 --> 00:11:53,319 Speaker 1: because he doesn't actually start until kind of later this year. 227 00:11:53,360 --> 00:11:57,319 Speaker 1: But this change, this change could be exactly what op 228 00:11:57,480 --> 00:12:01,760 Speaker 1: just needs, a very experienced player in the industry coming 229 00:12:01,760 --> 00:12:04,920 Speaker 1: across to steady the ship. A very kind of nautical 230 00:12:05,000 --> 00:12:08,559 Speaker 1: kind of theme today. After a disastrous eighteen months, last 231 00:12:08,640 --> 00:12:11,319 Speaker 1: year's massive Optis outage and the huge cyber attack the 232 00:12:11,320 --> 00:12:14,040 Speaker 1: previous year that saw customer's data land on the dark web, 233 00:12:14,400 --> 00:12:18,200 Speaker 1: it all did a massive amount of brand damage to Optus. 234 00:12:18,200 --> 00:12:21,000 Speaker 2: And this week can you say, can you say massive again? 235 00:12:21,840 --> 00:12:22,280 Speaker 1: Massive? 236 00:12:23,440 --> 00:12:24,200 Speaker 2: Great word? 237 00:12:24,679 --> 00:12:29,880 Speaker 1: Yes? Is it the word itself or is it the 238 00:12:29,880 --> 00:12:32,520 Speaker 1: fact that it's impossible to say it without without just 239 00:12:32,600 --> 00:12:35,080 Speaker 1: going massive massive? 240 00:12:35,440 --> 00:12:37,920 Speaker 2: Anyway, it's so, it's I was interested in your story. 241 00:12:38,760 --> 00:12:40,319 Speaker 2: I just got to hang up for you one word. 242 00:12:40,559 --> 00:12:43,560 Speaker 1: Well, you should be interested because this week, Sean, this 243 00:12:43,640 --> 00:12:47,600 Speaker 1: week Optis turned a corner, which is interesting if they 244 00:12:47,600 --> 00:12:49,199 Speaker 1: were a ship, because it's hard to kind of turn 245 00:12:49,240 --> 00:12:51,440 Speaker 1: a corner in the ocean. But anyway, it turned a corner. 246 00:12:51,800 --> 00:12:55,640 Speaker 1: Kelly Bay or Rosmarren's departure a CEO in November stops 247 00:12:55,679 --> 00:12:58,400 Speaker 1: the bleeding God. This is a very mixed metaphor, isn't it. 248 00:12:58,400 --> 00:13:01,960 Speaker 2: The ship the ship was leaking. I think she stopped 249 00:13:01,960 --> 00:13:02,280 Speaker 2: he leak. 250 00:13:02,400 --> 00:13:06,120 Speaker 1: It plugged the leaks, and now the Telco can start 251 00:13:06,440 --> 00:13:11,000 Speaker 1: rebuilding and repairing. And it's the same thing for the 252 00:13:11,400 --> 00:13:18,400 Speaker 1: ships of the skies. With quantas Oh God. This week, 253 00:13:18,640 --> 00:13:22,040 Speaker 1: I refer back to my earlier assessment of myself. This week, 254 00:13:22,559 --> 00:13:24,959 Speaker 1: the National Carrier reached a deal with the A Triple 255 00:13:25,040 --> 00:13:27,760 Speaker 1: C to pay a one hundred and twenty million dollar 256 00:13:27,840 --> 00:13:30,200 Speaker 1: penalty over the sale of tickets on flights that had 257 00:13:30,200 --> 00:13:33,320 Speaker 1: already been canceled. In case you'd forgotten, it was kind 258 00:13:33,360 --> 00:13:36,080 Speaker 1: of the straw that broke the camel's back last year, 259 00:13:36,200 --> 00:13:38,080 Speaker 1: because camels are, of course the ships of the desert. 260 00:13:38,600 --> 00:13:44,120 Speaker 1: And then saw CEO Alan Joyce about to quite a 261 00:13:44,120 --> 00:13:47,240 Speaker 1: lot of pressure and stepped down early. That's now behind them, 262 00:13:47,320 --> 00:13:51,800 Speaker 1: that is behind Quantis gesturing so wildly, I'm sending things 263 00:13:51,840 --> 00:13:55,080 Speaker 1: all over the studio here. That is now behind Quantis 264 00:13:55,080 --> 00:13:58,080 Speaker 1: and new CEO Vanessa Hudson fronted investors this week and 265 00:13:58,160 --> 00:14:01,079 Speaker 1: revealed that demand for premium economy and business and first 266 00:14:01,080 --> 00:14:04,360 Speaker 1: class is stronger than ever. It sounds to me like 267 00:14:04,520 --> 00:14:07,640 Speaker 1: Quantus might just have turned a corner this week as well. 268 00:14:08,120 --> 00:14:12,359 Speaker 1: Optus and Quantus the two most damaged brands in Australia 269 00:14:12,480 --> 00:14:16,400 Speaker 1: last year, both taking massive steps to repair their image 270 00:14:16,440 --> 00:14:23,400 Speaker 1: in the same week. That's remarkable. That is massive. It's massive, massive, huge, massive. 271 00:14:23,800 --> 00:14:26,960 Speaker 2: My most remarkable story for the week, it's what's happening 272 00:14:27,360 --> 00:14:32,480 Speaker 2: finally to consumer discretionary stocks. Like the name suggests, they 273 00:14:32,880 --> 00:14:37,800 Speaker 2: represent discretionary spending. I think JB HIGHI Baby Bunting, super 274 00:14:37,840 --> 00:14:41,200 Speaker 2: retail group that's got super cheap Audo, one of your favorites, 275 00:14:41,240 --> 00:14:44,720 Speaker 2: Michael Revel et cetera, Nick Scarley Harvey, Norman Temmelin Webster. 276 00:14:45,240 --> 00:14:47,320 Speaker 2: Their share prices towards the end of the week had 277 00:14:47,360 --> 00:14:50,520 Speaker 2: a very rough ride. This is the week where the 278 00:14:50,560 --> 00:14:53,640 Speaker 2: economic reality of higher interest rates and cost of limey 279 00:14:53,640 --> 00:14:58,000 Speaker 2: expenses really caught up with share prices, or maybe actually 280 00:14:58,000 --> 00:15:00,560 Speaker 2: maybe share prices caught up with the reality of the 281 00:15:00,560 --> 00:15:03,160 Speaker 2: cost of living. The sell off was triggered by bad 282 00:15:03,200 --> 00:15:05,680 Speaker 2: news from retail Darling JB high Fi it posted the 283 00:15:05,680 --> 00:15:08,200 Speaker 2: flat sales during the March quarter. Its share price tumbled 284 00:15:08,200 --> 00:15:12,360 Speaker 2: nearly five percent. Super Retail It gave a sales update, 285 00:15:12,480 --> 00:15:15,200 Speaker 2: said turnover was off one percent. Its share price fell 286 00:15:15,280 --> 00:15:18,400 Speaker 2: more than five percent. Baby Bunting was worst of all. 287 00:15:18,480 --> 00:15:20,880 Speaker 2: It said sales are actually going backwards. Share price down 288 00:15:20,960 --> 00:15:23,560 Speaker 2: twenty three percent. Temple on Webster was down eighteen percent. 289 00:15:23,920 --> 00:15:26,480 Speaker 2: It's basically the same story across the sector. Families just 290 00:15:26,480 --> 00:15:30,120 Speaker 2: don't have money after they pay for their insurance and 291 00:15:30,160 --> 00:15:34,800 Speaker 2: housing and education, all that stuff, to spend on necessary items. 292 00:15:35,200 --> 00:15:40,600 Speaker 2: The consumer discretionary stocks have hit a wall. Now, why 293 00:15:40,640 --> 00:15:43,960 Speaker 2: this is really quite so remarkable in my mind, is 294 00:15:43,960 --> 00:15:46,560 Speaker 2: that they've actually done really well, socks like JB High Fi, 295 00:15:46,640 --> 00:15:49,080 Speaker 2: Harvey Norman, they're up about twenty percent over the past year, 296 00:15:49,640 --> 00:15:53,280 Speaker 2: and it's only now that they've turned and they're going 297 00:15:53,320 --> 00:15:57,880 Speaker 2: the other way. It probably shouldn't be a surprise, because 298 00:15:58,480 --> 00:16:00,640 Speaker 2: you'd expect that given the slagh down the economy, but 299 00:16:00,680 --> 00:16:03,040 Speaker 2: it hadn't happened until this week. And I just think 300 00:16:03,120 --> 00:16:07,200 Speaker 2: watching the the interplay I suppose between economics in the 301 00:16:07,240 --> 00:16:11,280 Speaker 2: real world and what's happening with share prices pretty remarkable, really, 302 00:16:11,440 --> 00:16:12,480 Speaker 2: would you agree, Adam? 303 00:16:13,080 --> 00:16:16,480 Speaker 3: I do agree, it is pretty remarkable. Michael. Back to 304 00:16:18,040 --> 00:16:22,960 Speaker 3: your Massive story. Do you remember the band Massive Attack? 305 00:16:24,440 --> 00:16:27,240 Speaker 1: Do I lose points if I? If I you must 306 00:16:27,400 --> 00:16:28,360 Speaker 1: Massive Attack. 307 00:16:29,920 --> 00:16:34,680 Speaker 3: Out of Bristol, England's wonderful Songs protection. Anyway, as you 308 00:16:34,760 --> 00:16:37,040 Speaker 3: kept saying Massive, I just kept hearing that music in 309 00:16:37,080 --> 00:16:38,440 Speaker 3: the back of my head. 310 00:16:39,000 --> 00:16:40,440 Speaker 1: Nice, That's what I was hoping for you. 311 00:16:41,440 --> 00:16:46,120 Speaker 3: And in terms of you're just wonderful metaphor of the ship. So, Michael, 312 00:16:46,240 --> 00:16:48,320 Speaker 3: is business the ship of humanity? 313 00:16:49,640 --> 00:16:52,640 Speaker 1: Well, no, business is the ocean on which all of 314 00:16:52,680 --> 00:16:55,680 Speaker 1: these individual ships are sailing. 315 00:16:56,080 --> 00:17:01,680 Speaker 3: Very good, thank you. Corporate rehabilitation for me has to 316 00:17:01,720 --> 00:17:04,679 Speaker 3: win for story of the Week this week. The reason 317 00:17:04,840 --> 00:17:09,320 Speaker 3: is I think it's remarkable that Quantus has done this 318 00:17:09,480 --> 00:17:12,760 Speaker 3: deal with the A Triple C and if you look 319 00:17:12,800 --> 00:17:17,240 Speaker 3: at the intrinsics of what they've done, not all customers 320 00:17:17,520 --> 00:17:21,880 Speaker 3: really are making this work well, this system of repaying 321 00:17:22,560 --> 00:17:26,760 Speaker 3: or reclaiming these Quantus flight credits, and Joe Aston wrote 322 00:17:26,800 --> 00:17:28,840 Speaker 3: a ripping article on the Cinney Morning Herald this week 323 00:17:28,880 --> 00:17:32,480 Speaker 3: about it. But the fact that they've managed to really 324 00:17:32,640 --> 00:17:35,879 Speaker 3: build the brand while coming to an acceptable outcome of 325 00:17:35,960 --> 00:17:38,440 Speaker 3: the a triple C and be seen to have done 326 00:17:38,480 --> 00:17:41,960 Speaker 3: it well, I think is remarkable and optus new CEO 327 00:17:42,080 --> 00:17:45,080 Speaker 3: doesn't start, as you say, till November, Michael, but already 328 00:17:45,240 --> 00:17:48,280 Speaker 3: the brand's better off for it. So I think it 329 00:17:48,359 --> 00:17:51,080 Speaker 3: is the most remarkable story of the week. Well done. 330 00:17:51,200 --> 00:17:54,840 Speaker 2: Have you put your points in yet? Have you written yes, yes, 331 00:17:55,000 --> 00:17:56,360 Speaker 2: so you can't change them? No? 332 00:17:57,240 --> 00:17:57,760 Speaker 1: Fair enough? 333 00:17:57,880 --> 00:18:03,119 Speaker 2: Mine was dodges all hell, well, this just made up 334 00:18:03,160 --> 00:18:04,879 Speaker 2: that mine. That is dreadful, Sean. 335 00:18:05,359 --> 00:18:07,960 Speaker 1: While Adam was going through his judgment, I think that 336 00:18:08,080 --> 00:18:11,320 Speaker 1: is the first time you haven't looked as though you 337 00:18:11,400 --> 00:18:14,919 Speaker 1: felt ripped off. It actually felt as though this is 338 00:18:14,920 --> 00:18:17,359 Speaker 1: the first time you actually felt that you deserve to lose. 339 00:18:17,640 --> 00:18:20,040 Speaker 2: The first time in nearly four years that I think 340 00:18:20,080 --> 00:18:22,600 Speaker 2: the judge is done it when going against me, He's 341 00:18:22,640 --> 00:18:23,320 Speaker 2: done the right thing. 342 00:18:23,560 --> 00:18:26,919 Speaker 1: Unprecedented all right, But you know what this means. It 343 00:18:27,000 --> 00:18:30,560 Speaker 1: means it's one all heading into halftime. This is a competition, 344 00:18:31,600 --> 00:18:33,920 Speaker 1: unlike the last few weeks, which have definitely not been 345 00:18:33,960 --> 00:18:37,880 Speaker 1: a competition because I've been beaten like well, a drubbing. 346 00:18:37,960 --> 00:18:40,160 Speaker 1: I think each week this week it is not I'm 347 00:18:40,160 --> 00:18:42,080 Speaker 1: heading to a victory it's going to be glorious. We'll 348 00:18:42,080 --> 00:18:51,560 Speaker 1: be back in a moment, all right, Sean. We are 349 00:18:51,600 --> 00:18:54,359 Speaker 1: looking for a sleeper story. A sleeper story is, of course, 350 00:18:54,400 --> 00:18:57,560 Speaker 1: one that's not getting the attention that perhaps you feel 351 00:18:57,560 --> 00:18:59,399 Speaker 1: that it deserves, or I feel it deserves, and that 352 00:18:59,440 --> 00:19:04,160 Speaker 1: can be very objective. What is it for you this week, Sean, Well, it's. 353 00:19:04,000 --> 00:19:08,400 Speaker 2: Really about what Adam thinks isn't getting the attention it deserves? 354 00:19:08,400 --> 00:19:10,160 Speaker 1: Not your right like that is fair? 355 00:19:10,600 --> 00:19:15,400 Speaker 2: And he, being an economist, a CEO, a man who 356 00:19:15,440 --> 00:19:19,800 Speaker 2: loves banks, no problems I have this one. We have 357 00:19:19,920 --> 00:19:22,720 Speaker 2: now had three of the big four banks provide half 358 00:19:22,840 --> 00:19:25,760 Speaker 2: year earnings and Commonwealth Bank the other one provided third 359 00:19:25,840 --> 00:19:30,560 Speaker 2: quarter earnings. What's most notable is the big buybacks the 360 00:19:30,600 --> 00:19:32,520 Speaker 2: banks are doing. National Australian banks doing a one and 361 00:19:32,560 --> 00:19:35,520 Speaker 2: a half billion dollar buyback, westpacks a billion, an Z's 362 00:19:35,560 --> 00:19:38,439 Speaker 2: two billion. A buyback is exactly what it sounds like 363 00:19:38,480 --> 00:19:40,600 Speaker 2: the company in the case this case the banks, they're 364 00:19:40,600 --> 00:19:42,600 Speaker 2: actually buying back their own shares. It means there are 365 00:19:42,600 --> 00:19:46,160 Speaker 2: a fewer shares on issue, and assuming the profit doesn't change, 366 00:19:46,359 --> 00:19:51,360 Speaker 2: it means earnings for every share, earnings per share actually rises, 367 00:19:51,440 --> 00:19:53,480 Speaker 2: So the idea is you buy your stuff back, you 368 00:19:53,520 --> 00:19:57,560 Speaker 2: buy your stockback, and share prices rise, good for shareholders. 369 00:19:58,359 --> 00:20:02,520 Speaker 2: It also suggests that management and the board haven't found 370 00:20:02,520 --> 00:20:05,560 Speaker 2: anything better to do with the money. So they've got, 371 00:20:05,680 --> 00:20:07,639 Speaker 2: you know, ain z two billion dollars sitting there. What 372 00:20:07,640 --> 00:20:09,040 Speaker 2: are we going to do with a two billion dollars? Well, 373 00:20:09,080 --> 00:20:11,440 Speaker 2: we could buy a business, grow our business, or we 374 00:20:11,480 --> 00:20:14,240 Speaker 2: could get return to shareholders. There's nothing wrong with the 375 00:20:14,320 --> 00:20:18,520 Speaker 2: share buy back, but they're just not spending it on 376 00:20:18,600 --> 00:20:21,679 Speaker 2: anything on a new business, expending an old business. To 377 00:20:21,720 --> 00:20:24,480 Speaker 2: actually improve earnings in the future, you need to be 378 00:20:24,520 --> 00:20:28,360 Speaker 2: spending your money on building your business, not necessarily giving 379 00:20:28,400 --> 00:20:31,000 Speaker 2: it to shareholders. It might look good in the short 380 00:20:31,080 --> 00:20:33,359 Speaker 2: term a share buyback, but they actually do very little 381 00:20:33,400 --> 00:20:35,119 Speaker 2: to grow a business. And this is where the sleeper 382 00:20:35,119 --> 00:20:38,520 Speaker 2: part of the story comes in. If senior management and 383 00:20:38,520 --> 00:20:40,920 Speaker 2: boards aren't sure where growth is going to come from 384 00:20:41,280 --> 00:20:45,080 Speaker 2: within the banks, then how do we know where growth 385 00:20:45,160 --> 00:20:47,080 Speaker 2: is going to come from? How can we judge that? 386 00:20:47,160 --> 00:20:49,720 Speaker 2: And these companies are trading at multi year highs in 387 00:20:49,760 --> 00:20:52,520 Speaker 2: share price terms, so they're buying back their shares when 388 00:20:52,520 --> 00:20:55,040 Speaker 2: they're at multi year highs. I'd prefer them to actually 389 00:20:55,040 --> 00:20:58,040 Speaker 2: buy back their shares at multi year lows, to be honest, 390 00:20:58,040 --> 00:21:00,920 Speaker 2: but the fact that they're doing it, it just worries 391 00:21:01,000 --> 00:21:05,919 Speaker 2: me that there aren't any other options to grow the business, methinks, 392 00:21:05,960 --> 00:21:08,520 Speaker 2: and particularly given the banks are trading so high at 393 00:21:08,520 --> 00:21:11,480 Speaker 2: the moment, methinks bank investors might be in for a 394 00:21:11,480 --> 00:21:14,760 Speaker 2: bit of a rocky road over the coming year or so. 395 00:21:15,160 --> 00:21:19,720 Speaker 2: Plenty of professional analysts reckon that the banks are overpriced. Obviously, 396 00:21:19,720 --> 00:21:22,639 Speaker 2: we are not an investing podcast, so must go and 397 00:21:22,640 --> 00:21:25,359 Speaker 2: make your own decision using a financial advisor. But I 398 00:21:25,520 --> 00:21:27,879 Speaker 2: just reckon it's going to be a tough time for 399 00:21:27,920 --> 00:21:29,520 Speaker 2: the banks have the next twelve months or so, and 400 00:21:29,560 --> 00:21:32,360 Speaker 2: I think they share buy banks kind of prove the point. 401 00:21:32,920 --> 00:21:34,120 Speaker 2: That's a bit worthy, wasn't. 402 00:21:33,960 --> 00:21:34,800 Speaker 3: It very somber? 403 00:21:35,359 --> 00:21:42,159 Speaker 1: Do you say worthy or worthy or probably both? Sorry 404 00:21:42,200 --> 00:21:45,840 Speaker 1: that one that was unkind. But Adam, I've got a 405 00:21:45,920 --> 00:21:49,520 Speaker 1: ripper of a sleeper story this week already, and it 406 00:21:49,560 --> 00:21:54,840 Speaker 1: comes from one of your favorite commissioned, the Productivity Commission. 407 00:21:55,359 --> 00:21:59,000 Speaker 1: Of course, it is all about the My Health Record 408 00:21:59,320 --> 00:22:03,879 Speaker 1: Data portal. A very quick refresher. My Health Record is 409 00:22:03,920 --> 00:22:07,040 Speaker 1: as a digital record of your health data. Obviously, as 410 00:22:07,040 --> 00:22:09,479 Speaker 1: it sounds. It's designed to allow patients to see kind 411 00:22:09,480 --> 00:22:12,040 Speaker 1: of different doctors and specialists, et cetera, about a whole 412 00:22:12,040 --> 00:22:14,440 Speaker 1: lot of different things, and your records kind of travel 413 00:22:14,720 --> 00:22:17,920 Speaker 1: with you, okay, I think. But the extraoriny thing about 414 00:22:17,960 --> 00:22:19,879 Speaker 1: this is I think we've all seen instances of doctors 415 00:22:19,920 --> 00:22:22,960 Speaker 1: still having to fax over records and the like to 416 00:22:23,040 --> 00:22:26,440 Speaker 1: a specialist before an appointment, which just seems completely ridiculous 417 00:22:26,440 --> 00:22:29,560 Speaker 1: that I reckon doctors and medical centers are the only 418 00:22:29,600 --> 00:22:32,240 Speaker 1: place actually still using faxes in twenty twenty four. 419 00:22:32,320 --> 00:22:34,920 Speaker 3: But there's only a few buyers of that thermal roll 420 00:22:35,000 --> 00:22:36,320 Speaker 3: paper still in existence. 421 00:22:38,359 --> 00:22:41,680 Speaker 1: It's quite a niche market now, isn't it just medical clinics? 422 00:22:42,000 --> 00:22:47,280 Speaker 1: I think it's as smell they life. Anyway. The fact 423 00:22:47,400 --> 00:22:50,879 Speaker 1: is the problem here is that my health record system 424 00:22:51,040 --> 00:22:55,160 Speaker 1: isn't being used, certainly not to its full potential because 425 00:22:55,320 --> 00:22:57,960 Speaker 1: at the moment, and this data is ridiculous, At the moment, 426 00:22:58,240 --> 00:23:01,080 Speaker 1: just two percent of doctors ements in the system are 427 00:23:01,119 --> 00:23:05,479 Speaker 1: being looked at by doctors. Records are incomplete, there's poor 428 00:23:05,480 --> 00:23:10,960 Speaker 1: interrupt blut, there's poor interoperability, and it's got poor usability, 429 00:23:11,200 --> 00:23:15,680 Speaker 1: poor sea. What it feels like you're trying to draw 430 00:23:15,720 --> 00:23:18,919 Speaker 1: attention to words that I sometimes struggle with, but I 431 00:23:18,960 --> 00:23:22,280 Speaker 1: can say it again quite happily. There is poor interoperability. 432 00:23:25,600 --> 00:23:29,359 Speaker 3: Adam, can you say that word interoperability. 433 00:23:28,640 --> 00:23:32,600 Speaker 2: Interoperability and it's poor. 434 00:23:32,640 --> 00:23:36,440 Speaker 1: It's actually quite poor. Yeah, the interoperability, Well there we go. Yay. 435 00:23:37,280 --> 00:23:40,359 Speaker 1: It's got poor usability as well. But the thing is 436 00:23:40,560 --> 00:23:43,800 Speaker 1: this is a two billion dollar system and it's the 437 00:23:43,840 --> 00:23:45,680 Speaker 1: way of the future. As I said through the week 438 00:23:45,840 --> 00:23:47,760 Speaker 1: on the show, one day, we're going to look back 439 00:23:47,800 --> 00:23:50,520 Speaker 1: on this in disbelief because the way it is now 440 00:23:50,560 --> 00:23:55,280 Speaker 1: with siloed information between different medical professions is positively prehistoric. 441 00:23:55,800 --> 00:23:59,320 Speaker 1: So the sleeper story is that this massive opportunity, this chance. 442 00:23:59,200 --> 00:24:00,520 Speaker 2: To bring the massive it's back. 443 00:24:00,920 --> 00:24:04,639 Speaker 1: It's back, This massive opportunity, this chance to bring the 444 00:24:04,720 --> 00:24:09,080 Speaker 1: medical records of Australians well into the twenty first century, 445 00:24:09,280 --> 00:24:13,280 Speaker 1: is being missed. It's being neglected, and the Productivity Commission. 446 00:24:14,240 --> 00:24:17,639 Speaker 1: Thank god for the Productivity Commission, because their report this 447 00:24:17,720 --> 00:24:20,879 Speaker 1: week has really trained a spotlight on that. So stand 448 00:24:20,880 --> 00:24:24,120 Speaker 1: by for a push to get clinicians. Clinicians. Oh dear lord, 449 00:24:24,119 --> 00:24:27,760 Speaker 1: there's another one. Clinicians. Clinicians who are struggling with the 450 00:24:27,800 --> 00:24:32,080 Speaker 1: interoperability of this system, to get them using it, to 451 00:24:32,160 --> 00:24:34,640 Speaker 1: get them storing patients data on the system, to make 452 00:24:34,680 --> 00:24:36,920 Speaker 1: it easier for them to use, and to actually get 453 00:24:36,920 --> 00:24:40,359 Speaker 1: them using it. This is live reform, a real life 454 00:24:40,359 --> 00:24:44,560 Speaker 1: productivity measure that will make a massive difference gott to 455 00:24:44,680 --> 00:24:47,480 Speaker 1: use that word a lot to the lives of everyday Australians. 456 00:24:47,720 --> 00:24:50,520 Speaker 1: Nobody's talking about it, but that's because we are all 457 00:24:50,560 --> 00:24:54,000 Speaker 1: resigned to it being a clunky stone age process using 458 00:24:54,040 --> 00:24:57,120 Speaker 1: fax machines. Here comes the future and we can thank 459 00:24:57,160 --> 00:25:00,560 Speaker 1: the Productivity Commission for getting us there. A great sl story. 460 00:25:01,760 --> 00:25:07,600 Speaker 3: Oh my word, the melodrama just superb so data systems 461 00:25:07,600 --> 00:25:12,040 Speaker 3: efficiency customer service Michael. It's like you're speaking my language. 462 00:25:12,440 --> 00:25:16,000 Speaker 1: I hope. So does it translate into points? 463 00:25:16,040 --> 00:25:18,639 Speaker 3: Well, yes, it translates into points. But how many? 464 00:25:18,840 --> 00:25:19,040 Speaker 2: Right? 465 00:25:19,160 --> 00:25:25,680 Speaker 3: So Sean this, Sean, this is a really big one, 466 00:25:25,800 --> 00:25:31,639 Speaker 3: this sleeper story. Share buybacks and I wonder too. And 467 00:25:31,720 --> 00:25:34,480 Speaker 3: the catalyst for me wondering about it was your newsletter 468 00:25:34,520 --> 00:25:38,920 Speaker 3: on Wednesday, which was awesome. And the point around share buybacks, Yes, 469 00:25:39,040 --> 00:25:41,720 Speaker 3: they don't have any better option for growth and buying 470 00:25:41,760 --> 00:25:44,080 Speaker 3: back their own shares and their trading at high values 471 00:25:44,280 --> 00:25:47,920 Speaker 3: but I also have to observe that, no doubt some 472 00:25:47,960 --> 00:25:52,080 Speaker 3: of the executives are on incentive plans, including shares, and 473 00:25:52,119 --> 00:25:55,359 Speaker 3: it's also in their interest to boost the value of 474 00:25:55,400 --> 00:25:57,640 Speaker 3: those shares when there are less of them. 475 00:25:57,680 --> 00:26:00,880 Speaker 2: They can like a former CEO never did a share 476 00:26:00,920 --> 00:26:03,880 Speaker 2: by of b action, all right, but you wish you had. 477 00:26:06,400 --> 00:26:08,800 Speaker 3: But you know, to me, that is a really big 478 00:26:08,840 --> 00:26:14,919 Speaker 3: sleeper story. Mill just just by a whisker gets you 479 00:26:15,000 --> 00:26:18,880 Speaker 3: on melodrama. So Michael wins sleeper story of the week. 480 00:26:19,040 --> 00:26:23,440 Speaker 2: On melodrama, he gets me by a thousand whiscuits on story. 481 00:26:23,840 --> 00:26:27,440 Speaker 2: Absolutely not. But you are the judge. I will give 482 00:26:27,480 --> 00:26:28,080 Speaker 2: that to you. 483 00:26:28,720 --> 00:26:31,040 Speaker 1: And as Adam said at the start, melodrama was the 484 00:26:31,080 --> 00:26:33,280 Speaker 1: prime criteria. That's right. 485 00:26:34,080 --> 00:26:38,920 Speaker 2: The my health thing though, I mean what you've just said, 486 00:26:39,080 --> 00:26:41,480 Speaker 2: like we've known that for so I'm not so points 487 00:26:41,480 --> 00:26:45,040 Speaker 2: are in. I get why don't the medical profession just 488 00:26:45,280 --> 00:26:49,679 Speaker 2: use the freaking frustrating because nothing happened this week of 489 00:26:49,720 --> 00:26:52,479 Speaker 2: any difference whatsoever. It's just this has been going on 490 00:26:52,520 --> 00:26:56,520 Speaker 2: for months and years and everyone complains about it, but 491 00:26:56,520 --> 00:26:57,240 Speaker 2: nothing happens. 492 00:26:57,480 --> 00:26:59,919 Speaker 3: Federation of Stage Sean. That's where I. 493 00:27:02,560 --> 00:27:06,080 Speaker 1: And once and once again Adam uses this show to 494 00:27:06,160 --> 00:27:08,680 Speaker 1: push to push his own little agenda. 495 00:27:11,440 --> 00:27:11,959 Speaker 3: I love that. 496 00:27:12,440 --> 00:27:14,560 Speaker 1: So does that mean then, is that two to one 497 00:27:14,760 --> 00:27:15,200 Speaker 1: my way? 498 00:27:15,520 --> 00:27:18,399 Speaker 2: Yes, Michael can I I'm going to go for my 499 00:27:18,400 --> 00:27:20,320 Speaker 2: favorite story because I think it's a cracking story. 500 00:27:20,440 --> 00:27:22,280 Speaker 1: Oh yeah, please right. 501 00:27:22,320 --> 00:27:28,320 Speaker 2: Avzed Minerals, Oh, my favorite story for all the wrong reasons. 502 00:27:28,880 --> 00:27:30,800 Speaker 2: You need to know the history of this one. It's 503 00:27:30,840 --> 00:27:33,520 Speaker 2: a lithium explorer and shareholders now face one of the 504 00:27:33,520 --> 00:27:38,359 Speaker 2: biggest wealth wipeouts in history, well at least ASEX history, 505 00:27:38,840 --> 00:27:41,359 Speaker 2: after management said it will be list from the AX 506 00:27:41,840 --> 00:27:46,040 Speaker 2: on Monday, coming nine days time. The Perth based explorer 507 00:27:46,080 --> 00:27:48,840 Speaker 2: has more than twenty one thousand shareholders paper wealth two 508 00:27:48,840 --> 00:27:51,480 Speaker 2: point eight billion dollars tied up in shares that last 509 00:27:51,520 --> 00:27:56,159 Speaker 2: traded on the AX in May two Now Avsed Minerals 510 00:27:56,240 --> 00:27:58,960 Speaker 2: is in dispute over ownership rights to potentially the world's 511 00:27:59,080 --> 00:28:09,320 Speaker 2: largest lift deposit, called Menano Mno in the Democratic Republic 512 00:28:09,320 --> 00:28:11,800 Speaker 2: of Congab. The board has now said it will not 513 00:28:11,840 --> 00:28:14,680 Speaker 2: seek to being reinstated on the AX, blaming the perspective 514 00:28:14,720 --> 00:28:18,280 Speaker 2: dlisting on the Congolese government's failure to comply with court orders. 515 00:28:18,400 --> 00:28:21,080 Speaker 2: A bunch of other battles it's got Chinese and Congolese 516 00:28:21,119 --> 00:28:26,280 Speaker 2: mining rivals for control of this Menano tenement in Congo southwest. 517 00:28:26,960 --> 00:28:30,760 Speaker 2: That's all the background. What's really interesting. So Avz's market 518 00:28:31,119 --> 00:28:34,560 Speaker 2: valuation hit four point six billion dollars in April twenty 519 00:28:34,600 --> 00:28:38,040 Speaker 2: twenty two when it came out and said that it's 520 00:28:38,160 --> 00:28:43,560 Speaker 2: likely to secure the license to mine the Menano deposit. Now, 521 00:28:43,680 --> 00:28:49,680 Speaker 2: this Menano deposit is massive. A month later, AVZ said, 522 00:28:49,840 --> 00:28:52,480 Speaker 2: we're actually going to have to go into a massive. 523 00:28:52,120 --> 00:28:56,200 Speaker 1: So it did not have enough melodima behind it. You've 524 00:28:56,200 --> 00:28:58,640 Speaker 1: got to really take it from your diaphragm. 525 00:28:58,720 --> 00:29:02,680 Speaker 2: Massive, massive, right out there we go. The next month, 526 00:29:02,680 --> 00:29:05,520 Speaker 2: I Explorer entered a trading hauld after it said to 527 00:29:05,640 --> 00:29:08,360 Speaker 2: investors that it faced a legal dispute with Chinese and 528 00:29:08,480 --> 00:29:12,800 Speaker 2: Congolese rivals over It hasn't traded since. It's very possible 529 00:29:12,800 --> 00:29:14,720 Speaker 2: there's no value left in the company now because it's 530 00:29:14,760 --> 00:29:16,880 Speaker 2: facing all sorts of legal action all over the place. 531 00:29:17,280 --> 00:29:19,560 Speaker 2: It's got four point two million dollars cash in hand. 532 00:29:19,560 --> 00:29:24,680 Speaker 2: They'll go on those legal disputes. So two point eight 533 00:29:24,680 --> 00:29:26,960 Speaker 2: billion is it's worth. But a month prior to that 534 00:29:27,640 --> 00:29:31,880 Speaker 2: four point six billion dollars and that basically has gone 535 00:29:32,480 --> 00:29:35,240 Speaker 2: and all the shareholders will get nothing back or very 536 00:29:35,600 --> 00:29:39,760 Speaker 2: highly unlikely that they will get anything back. I just think, 537 00:29:39,840 --> 00:29:44,840 Speaker 2: like everything wrong with that. Basically a mining yarn. It's 538 00:29:44,880 --> 00:29:49,640 Speaker 2: about working with sovereign risk, So working in Africa where 539 00:29:49,840 --> 00:29:53,960 Speaker 2: the rule of law isn't probably as as sturdy as 540 00:29:53,960 --> 00:29:58,000 Speaker 2: it might be in Australia. The fact that shareholders were 541 00:29:58,040 --> 00:30:00,200 Speaker 2: told something and Sunday, four weeks later they were hold 542 00:30:00,280 --> 00:30:02,880 Speaker 2: something else. They lost a massive amount of money, massive 543 00:30:02,880 --> 00:30:06,160 Speaker 2: amount of money, lack of communication with shareholders, the loss 544 00:30:06,160 --> 00:30:10,720 Speaker 2: of value. Just a really great yarn about a business. 545 00:30:12,160 --> 00:30:14,200 Speaker 2: Not much melodrama, but I think the fact that the 546 00:30:14,240 --> 00:30:19,040 Speaker 2: story itself is such an incredible story, does it boys 547 00:30:19,200 --> 00:30:19,680 Speaker 2: say something? 548 00:30:19,960 --> 00:30:20,960 Speaker 1: I like that theory? 549 00:30:22,240 --> 00:30:24,920 Speaker 3: What is it kind of favorite yarn of the week 550 00:30:25,480 --> 00:30:28,920 Speaker 3: rather than a positive favorite? It is definitely a big story. 551 00:30:29,600 --> 00:30:34,840 Speaker 2: Yeah. In fact, hih, I think was probably biggest insurance crowd. Yeah, 552 00:30:34,840 --> 00:30:38,000 Speaker 2: but this one if you take it as because some 553 00:30:38,040 --> 00:30:41,240 Speaker 2: people got money back in that, but I think it 554 00:30:41,360 --> 00:30:44,080 Speaker 2: was worth five point It was over five billion in total, 555 00:30:44,160 --> 00:30:46,240 Speaker 2: but there was money that went back. This is four 556 00:30:46,240 --> 00:30:48,320 Speaker 2: point six billion dollars from the April twenty two moments. 557 00:30:48,320 --> 00:30:51,600 Speaker 2: So this could be even bigger than hih incredible story. 558 00:30:52,320 --> 00:30:55,480 Speaker 1: Michael, Yeah, I think that is a great story, and 559 00:30:55,480 --> 00:30:57,400 Speaker 1: I wasn't going to interrupt with any kind of criticism 560 00:30:57,400 --> 00:30:59,480 Speaker 1: because I thought it was excellent. 561 00:30:59,560 --> 00:30:59,800 Speaker 2: Good. 562 00:31:00,960 --> 00:31:03,120 Speaker 1: See that's how I am when I'm leading going into 563 00:31:03,160 --> 00:31:06,360 Speaker 1: the final round, a very generous of spirit, good sport 564 00:31:07,400 --> 00:31:09,959 Speaker 1: favorite story. It takes a lot for me not to 565 00:31:10,080 --> 00:31:12,240 Speaker 1: choose an airline story or a space story this week. 566 00:31:12,240 --> 00:31:14,400 Speaker 1: We actually had the potential for either for any of 567 00:31:14,400 --> 00:31:16,720 Speaker 1: these ones, because we had quantas, we had bondser we 568 00:31:16,760 --> 00:31:19,520 Speaker 1: had a new planet that's too far away and actually 569 00:31:19,560 --> 00:31:21,400 Speaker 1: too hot to actually be of any use to us, 570 00:31:21,880 --> 00:31:24,960 Speaker 1: all good options for my favorite story. Instead, I've gone 571 00:31:25,600 --> 00:31:30,080 Speaker 1: for this one because it actually affects everyone in every 572 00:31:30,080 --> 00:31:35,160 Speaker 1: workplace around Australia. There's new research from the Australian HR 573 00:31:35,280 --> 00:31:39,080 Speaker 1: Institute that shows that fifty seven percent of employers believe 574 00:31:39,120 --> 00:31:42,680 Speaker 1: this skills gap is harming organizations. Now that's pretty alarming, 575 00:31:43,480 --> 00:31:47,120 Speaker 1: but this next stat is the one that will shock 576 00:31:47,200 --> 00:31:50,600 Speaker 1: you to your very core. Without kind of overstating this. 577 00:31:51,640 --> 00:31:54,160 Speaker 1: According to this research from a survey of more than 578 00:31:54,200 --> 00:31:58,920 Speaker 1: six hundred senior HR professionals and business leaders, almost twenty 579 00:31:59,000 --> 00:32:04,680 Speaker 1: percent of workers are not proficient in their role, and 580 00:32:04,720 --> 00:32:09,560 Speaker 1: that caused me to ponder naturally about fear and greed. 581 00:32:12,080 --> 00:32:15,239 Speaker 1: So a little process of elimination. Here. We've got our 582 00:32:15,320 --> 00:32:18,120 Speaker 1: We've got our producer Luke, who is brilliant at his job, 583 00:32:18,320 --> 00:32:22,320 Speaker 1: very skilled, So it's not him. Stephen coucoulis, a resident 584 00:32:22,360 --> 00:32:25,160 Speaker 1: economist who's on the week Ahead every Monday. 585 00:32:25,280 --> 00:32:26,520 Speaker 2: Absolute proficiency. 586 00:32:26,800 --> 00:32:29,440 Speaker 1: He is more than proficient. So that's that's that's forty 587 00:32:29,480 --> 00:32:31,120 Speaker 1: percent of the Fear and Greed team, and that just 588 00:32:31,200 --> 00:32:34,640 Speaker 1: leaves the three of us this process of elimination. The 589 00:32:34,680 --> 00:32:35,120 Speaker 1: one in. 590 00:32:35,200 --> 00:32:36,840 Speaker 3: Five's the short straw. 591 00:32:37,080 --> 00:32:39,840 Speaker 1: The one in five has to be one of us 592 00:32:39,880 --> 00:32:42,240 Speaker 1: sitting here in the studio. And I hate to say it. 593 00:32:42,560 --> 00:32:43,880 Speaker 1: I hate to say it. 594 00:32:43,760 --> 00:32:44,640 Speaker 3: To the judge. 595 00:32:45,240 --> 00:32:48,800 Speaker 1: No, No, stand by Adam as the only person of 596 00:32:48,880 --> 00:32:52,440 Speaker 1: the three of us who knew very little about kind 597 00:32:52,440 --> 00:32:56,600 Speaker 1: of more arguably business when we started a business podcast. 598 00:32:56,760 --> 00:32:59,479 Speaker 1: I'm a little worried that it could be me because 599 00:33:00,120 --> 00:33:02,440 Speaker 1: cause listen to my reasoning here. 600 00:33:02,480 --> 00:33:04,640 Speaker 2: Hold on, hold on, don't don't go be nice to 601 00:33:04,680 --> 00:33:06,040 Speaker 2: the judge. Go on. 602 00:33:06,280 --> 00:33:09,520 Speaker 1: We've got We've got We've got you, Sean the business journalist. 603 00:33:09,640 --> 00:33:12,760 Speaker 1: You've been covering business since before business was even invented. 604 00:33:13,560 --> 00:33:16,280 Speaker 1: And then then over here we've got Adam the former 605 00:33:16,360 --> 00:33:19,000 Speaker 1: CEO of an ASX listed company. You've been swimming around 606 00:33:19,000 --> 00:33:22,960 Speaker 1: in the business world for eons. Right then we've got 607 00:33:22,960 --> 00:33:26,960 Speaker 1: the man of the people, the everyday Joe who just 608 00:33:27,080 --> 00:33:30,479 Speaker 1: found himself here, who woke up in a team of 609 00:33:30,560 --> 00:33:34,480 Speaker 1: brilliant coworkers and wonders every day how he got here. 610 00:33:35,320 --> 00:33:37,040 Speaker 1: So I'm going to take one for the team today 611 00:33:37,360 --> 00:33:39,600 Speaker 1: and say that if it if one of us has 612 00:33:39,640 --> 00:33:42,400 Speaker 1: to be the twenty percent who's not proficient, I would 613 00:33:42,480 --> 00:33:46,400 Speaker 1: rather it be me, the honorable Michael Thompson, throwing himself 614 00:33:46,440 --> 00:33:49,640 Speaker 1: on this grenade, who's definitely not doing it so that 615 00:33:49,680 --> 00:33:55,640 Speaker 1: he gets the win out of pity. But but if 616 00:33:56,040 --> 00:34:00,240 Speaker 1: he does get the win out of pity, if he will, 617 00:34:00,280 --> 00:34:03,280 Speaker 1: he will accept it and accept a three to one victory. 618 00:34:05,880 --> 00:34:09,760 Speaker 3: Okay, Just a question on that report, Michael, the people 619 00:34:09,760 --> 00:34:13,120 Speaker 3: from the Australian ha Institute saying that the droping skills 620 00:34:13,600 --> 00:34:17,200 Speaker 3: has happened and twenty percent of workers are not proficient, 621 00:34:17,640 --> 00:34:23,799 Speaker 3: do they include themselves in that twenty percent? Well, that's 622 00:34:23,840 --> 00:34:29,440 Speaker 3: a rhetorical question, obviously. In case I shan't answer it. No, 623 00:34:29,600 --> 00:34:31,080 Speaker 3: do go ahead, don't let that stop. 624 00:34:31,200 --> 00:34:33,160 Speaker 1: Please please please go on. 625 00:34:34,719 --> 00:34:38,719 Speaker 3: Short story, quick use of the old calculator that I 626 00:34:38,760 --> 00:34:43,800 Speaker 3: still have from university days. That four point six billion 627 00:34:43,840 --> 00:34:46,560 Speaker 3: across twenty one thousand shelds. That's over two hundred grand 628 00:34:46,600 --> 00:34:50,959 Speaker 3: each that they've lost. I'm meant to say that because 629 00:34:50,960 --> 00:34:55,279 Speaker 3: there's not an applicable rule of law. It's a staggering 630 00:34:55,320 --> 00:34:59,000 Speaker 3: amount of money, and just how disappointing it is imagined 631 00:34:59,000 --> 00:35:02,200 Speaker 3: for those people working on it. So it's not a 632 00:35:02,280 --> 00:35:05,640 Speaker 3: positive story, but it has to be the favorite yarn 633 00:35:05,640 --> 00:35:06,319 Speaker 3: of the week for me. 634 00:35:07,520 --> 00:35:10,720 Speaker 1: Say you're saying there's no pity point for me here, Adam. 635 00:35:11,200 --> 00:35:15,320 Speaker 3: No, look, Michael, you gave it everything on melodrama. 636 00:35:15,760 --> 00:35:19,160 Speaker 1: I sure did. There's nothing that I'm a shriveled husk 637 00:35:19,200 --> 00:35:23,240 Speaker 1: of a human right now, Adam, I've given it everything 638 00:35:23,280 --> 00:35:23,760 Speaker 1: I've got. 639 00:35:24,040 --> 00:35:27,440 Speaker 3: Yeah, so that's too all on the story count. 640 00:35:27,440 --> 00:35:30,040 Speaker 1: Today points Adam points, Hi, here we go. 641 00:35:30,000 --> 00:35:34,000 Speaker 3: Here we go, Michael ninety two points. Yeah, yeah, yeah, 642 00:35:34,000 --> 00:35:36,160 Speaker 3: Sean ninety three points. 643 00:35:38,800 --> 00:35:39,840 Speaker 2: That does make me laugh. 644 00:35:44,080 --> 00:35:46,360 Speaker 3: I wish I was I wish I had a scheme 645 00:35:46,440 --> 00:35:49,440 Speaker 3: in mind, but this is just how the scores flow. 646 00:35:50,280 --> 00:35:53,800 Speaker 2: It's that last too much melodrama, Michael, that last story, 647 00:35:53,920 --> 00:35:55,880 Speaker 2: too much melodrama. OK, and that's where you lost it. 648 00:35:55,960 --> 00:35:58,480 Speaker 3: Well, it was just it was only six hundred people 649 00:35:58,560 --> 00:36:01,799 Speaker 3: and it was an HR Institute report, So I just 650 00:36:01,880 --> 00:36:05,719 Speaker 3: don't see it as that big or a favorite of 651 00:36:05,760 --> 00:36:06,080 Speaker 3: the week. 652 00:36:07,160 --> 00:36:11,879 Speaker 1: Yeah, fair enough, well judged Michael. Snap out of it. Okay, Sorry, 653 00:36:11,880 --> 00:36:13,759 Speaker 1: I'm fine. I'm fine. I really thought I had it 654 00:36:13,800 --> 00:36:17,360 Speaker 1: this week. I really thought it was fine. But you 655 00:36:17,440 --> 00:36:20,080 Speaker 1: know what, I look forward to using the budget next 656 00:36:20,120 --> 00:36:23,480 Speaker 1: week to secure a fabulous victory. 657 00:36:24,080 --> 00:36:25,360 Speaker 3: Let's see if there's anything in it. 658 00:36:26,160 --> 00:36:28,919 Speaker 1: Thank you very much, Adam, thank you Michael, and thank 659 00:36:28,960 --> 00:36:36,440 Speaker 1: you Sean. No, thank the gracious winner. Make sure you're 660 00:36:36,440 --> 00:36:40,280 Speaker 1: following the podcast and please join us online on LinkedIn, Instagram, 661 00:36:40,320 --> 00:36:43,120 Speaker 1: ex TikTok, and Facebook. I'm Michael Thompson and that was 662 00:36:43,160 --> 00:36:44,920 Speaker 1: Fear and Greed. Have a great weekend.