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Speaker 1: Welcome to the Fear and Green Business Newsday Afternoon Report

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Speaker 1: for Wednesday, the twenty sixth of June twenty twenty four.

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Speaker 1: Every afternoon, we've got the five stories that happened today

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Speaker 1: that you need to know about. Storing Num one. Inflation

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Speaker 1: rose from three point six percent to four percent in

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Speaker 1: the year to the end of May, sparking fears for

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Speaker 1: a rate rise sometime this year. While the consensus view

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Speaker 1: remains that the next move in rates is down, the

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Speaker 1: Australian Bureau Statistics data released this morning certainly unsettled markets.

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Speaker 1: The SMPASX two hundred was poorly ahead of the inflation

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Speaker 1: number and then dropped even further to its low for

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Speaker 1: the day. By the close, the benchmark had recovered some

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Speaker 1: ground and finished down zero point seven percent to seven

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Speaker 1: hundred and eighty three points. The interest rate sensitive sectors

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Speaker 1: were hit hardest, led lower by real estate companies. Center

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Speaker 1: Group fell three percent, while Goodwin Group was down nearly

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Speaker 1: two percent. The surprise spike hit some of the consumer

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Speaker 1: discretionary stocks as well. Collin's Foods, owner of KFC and

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Speaker 1: Taco bell It fell nearly nine percent. Norman was off

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Speaker 1: eight percent. Eagers Automotive dropped three point six percent, while

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Speaker 1: leader JB hi Fi ended down more than three percent.

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Speaker 1: The bank's ended lower, with Commonwealth Bank and A and

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Speaker 1: Z both off one and a half percent. West Farmer's

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Speaker 1: QB in South thirty two all fill more than two percent.

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Speaker 1: You get the gist. The energy in tech stocks did best.

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Speaker 1: Story number two. Australians are leaving the mortgage market in

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Speaker 1: unusually large numbers, presumably due to one going high interest rates,

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Speaker 1: while those with mortgages are increasingly taking advantage of offset accounts.

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Speaker 1: That's the findings of the Reserve Bank, which has been

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Speaker 1: looking at the mortgage discharge rate, which measures people either

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Speaker 1: paying off their homes or getting out of the market.

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Speaker 1: It's running at about forty billion dollars per quarter, while

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Speaker 1: the amount of new loans is running at eighty billion

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Speaker 1: dollars per quarter. The ratio of discharges to new loans

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Speaker 1: is sitting at fifty percent, and that's the highest rate

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Speaker 1: since at least two thousand and nine, the Reserve Bank says.

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Speaker 1: Taken together, the figures suggest that highly leveraged investors, those

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Speaker 1: with polenty of debt and homeowners are selling and on

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Speaker 1: average being replaced with buyers with a larger deposit storrow

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Speaker 1: number three. Seven West Media has announced big changes at

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Speaker 1: the top of the organization as it struggles to turn

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Speaker 1: around its ailing profits. The head of sales Kurt Burnett,

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Speaker 1: the marketing chief Missa Hopkins, and the sports chief Lewis

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Speaker 1: Martin have all left the company. It follows the departure

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Speaker 1: of CEO James Warburton, legal chief Bruce McWilliam and news

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Speaker 1: chief Craig McPherson two months ago. Basically everyone is out

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Speaker 1: except the former chief financial officer now CEO, Jeff Howard. Seven,

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Speaker 1: along with competitor and Nine Entertainment, is struggling with lower

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Speaker 1: free to air audiences and a cyclical downturn in AdSpend.

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Speaker 1: Unlike Nine, which owned stands, seven doesn't have a streaming

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Speaker 1: service to rely upon. Story number four. The world is

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Speaker 1: headed for food wars as geopolitical tensions and climate change

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Speaker 1: push countries into conflict over waning supplies, according to one

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Speaker 1: of the world's largest agricultural commodity traders, Sunny V. Gays,

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Speaker 1: the boss of Olam Group, one of the world's biggest

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Speaker 1: agricultural trading houses, said many wars have been fought over oil,

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Speaker 1: but now there'll be bigger wars over food and water.

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Speaker 1: He warned that trade barriers imposed by governments seeking to

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Speaker 1: shore up domestic food stocks had exacerbated food inflation. According

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Speaker 1: to report in the Financial Times, a proliferation of non

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Speaker 1: tariff trade barriers in twenty twenty two twelve hundred and

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Speaker 1: sixty six from one hundred and fifty four countries by

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Speaker 1: vigases count had created an exaggerated demand supply imbalance. Wealthier

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Speaker 1: countries for building up surpluses of strategic commodities like food,

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Speaker 1: leading to exaggerated demand and in turn higher prices and storing.

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Speaker 1: Number five German car making giant Volkswagen will invest up

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Speaker 1: to five billion US dollars in a joint venture with

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Speaker 1: US based EV maker Rivian. Rivian is a rival to Tesla.

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Speaker 1: Its share price jumped almost fifty percent after the announcement

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Speaker 1: was made overnight. The two companies who agreed to share technology.

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Speaker 1: Founded in two thousand and nine, Rivian has not yet

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Speaker 1: made a quarterly profit. According to a report on BBC,

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Speaker 1: VW has come under pressure from rivals like Tesla and

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Speaker 1: China's BYD as it tries to make the shift from

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Speaker 1: fossil fuel powered vehicles into evs. Separately, this week, Tesla

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Speaker 1: said it would recall most of it's eleven thousand cyber

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Speaker 1: trucks sold in the US the issues with their windscreen,

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Speaker 1: wipers and exterior trim. That's it for the afternoon report

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Speaker 1: for When Today, the twenty sixth of June twenty twenty four.

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Speaker 1: Don't forget tit. Follow on the podcast and find Fear

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Speaker 1: Michael Thompson and I Tomorrow I'm wanning for the Fast

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Speaker 1: Five by Fear and Greed. Top five business stories you

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Speaker 1: need to know in just five minutes. I'm Seane Elmer.

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Speaker 1: Enjoy your evening,