1 00:00:03,920 --> 00:00:06,720 Speaker 1: It's Wednesday, the twenty second of May twenty twenty four. 2 00:00:06,920 --> 00:00:09,680 Speaker 1: Welcome to the Fast five Business News by Fear and Greed. 3 00:00:09,680 --> 00:00:11,720 Speaker 1: Will we give you the top five business stories. 4 00:00:11,400 --> 00:00:11,840 Speaker 2: You need to know. 5 00:00:11,920 --> 00:00:14,680 Speaker 1: We're just five minutes, Oh, Michael Thompson, and good morning 6 00:00:14,720 --> 00:00:15,480 Speaker 1: Sean Aylmer. 7 00:00:15,960 --> 00:00:17,680 Speaker 2: Good morning, Michael, Sean. 8 00:00:17,800 --> 00:00:20,760 Speaker 1: Five stories in five minutes. Let's go a story number one. 9 00:00:20,800 --> 00:00:24,439 Speaker 1: The Reserve Bank seriously debated lifting the official interest rate 10 00:00:24,520 --> 00:00:27,680 Speaker 1: at its board meeting two weeks ago, and remained very 11 00:00:27,680 --> 00:00:29,960 Speaker 1: alert to stubbornly high inflation. 12 00:00:30,640 --> 00:00:33,559 Speaker 2: The minutes of the Reserve Bank's boards meetings show that 13 00:00:33,560 --> 00:00:36,720 Speaker 2: any further slippage in the Bank's current forecast for inflation 14 00:00:37,120 --> 00:00:39,480 Speaker 2: could trigger another rate height. Now, the meeting was held 15 00:00:39,479 --> 00:00:43,400 Speaker 2: after the March quarter CPI data, which was higher than forecast. However, 16 00:00:43,400 --> 00:00:45,720 Speaker 2: the banks that it didn't want to use monetary policy, 17 00:00:45,720 --> 00:00:49,040 Speaker 2: which is a very blunt instrument to excessively fine tune 18 00:00:49,120 --> 00:00:52,080 Speaker 2: the economy. Now, since then, the federal budget's been released 19 00:00:52,080 --> 00:00:54,640 Speaker 2: in a three hundred dollars energy rebate should push inflation 20 00:00:54,840 --> 00:00:57,160 Speaker 2: lower towards the end of this year. Also, the Westpac 21 00:00:57,200 --> 00:01:00,120 Speaker 2: consumer sentiment survey released yesterday shaws that people are looking 22 00:01:00,160 --> 00:01:02,279 Speaker 2: to use their Stage three tax cuts to pay our 23 00:01:02,360 --> 00:01:05,720 Speaker 2: debt or save rather than rush out and spend. Westpac 24 00:01:05,880 --> 00:01:08,240 Speaker 2: estimates that thirty percent will save all the tax cut, 25 00:01:08,480 --> 00:01:11,040 Speaker 2: fifty percent will save at least half. We've got eighty 26 00:01:11,080 --> 00:01:13,360 Speaker 2: percent of people saving the money that will actually help 27 00:01:13,560 --> 00:01:15,960 Speaker 2: the bank's efforts to push down inflation. 28 00:01:16,680 --> 00:01:19,039 Speaker 1: John If eighty percent of people save at least some 29 00:01:19,280 --> 00:01:21,840 Speaker 1: of their Stage three tax cuts, does that mean then 30 00:01:21,880 --> 00:01:25,480 Speaker 1: the Reserve Bank might have overestimated their impact on prices. 31 00:01:26,080 --> 00:01:28,800 Speaker 2: Possibly, it depends on what measures the Central Bank used 32 00:01:28,800 --> 00:01:31,560 Speaker 2: to forecast people's propensity to save now. In the mints 33 00:01:31,600 --> 00:01:34,080 Speaker 2: of the board meeting yesterday, the Reserve Bank said households 34 00:01:34,080 --> 00:01:36,920 Speaker 2: were maintaining a higher rate of savings set expected. But 35 00:01:37,000 --> 00:01:39,600 Speaker 2: the Westpac figure of eighty percent definitely seems like a 36 00:01:39,600 --> 00:01:42,480 Speaker 2: big chunk of people being prudent. But if that's the case, 37 00:01:42,480 --> 00:01:44,680 Speaker 2: it is quite possible that the tax cuts won't cause 38 00:01:44,720 --> 00:01:47,960 Speaker 2: as many price rises as expected. Remember, the Reserve Bank 39 00:01:47,960 --> 00:01:50,520 Speaker 2: has forecasts and inflation won't return to target until the 40 00:01:50,560 --> 00:01:53,200 Speaker 2: second half of next year on the basis of people 41 00:01:53,280 --> 00:01:57,320 Speaker 2: spending their tax cuts. So the Westpac data is definitely significant, 42 00:01:58,000 --> 00:02:00,920 Speaker 2: and if it eventuates along with the reduct inflation thanks 43 00:02:00,920 --> 00:02:03,320 Speaker 2: to the three hundred dollars energy rebate. Good news for 44 00:02:03,360 --> 00:02:06,000 Speaker 2: those waiting for interest rates to fall alrighty. 45 00:02:06,120 --> 00:02:09,280 Speaker 1: Under story number two, Telstra will cut about ten percent 46 00:02:09,400 --> 00:02:12,600 Speaker 1: of its workforce twenty eight hundred jobs in an effort 47 00:02:12,639 --> 00:02:15,320 Speaker 1: to save three hundred and fifty million dollars as it 48 00:02:15,360 --> 00:02:17,320 Speaker 1: struggles to compete with new technologies. 49 00:02:17,680 --> 00:02:19,880 Speaker 2: It's part of Telstra's long term plan to become more 50 00:02:19,880 --> 00:02:22,120 Speaker 2: efficient and reflects the fact that people are shifting from 51 00:02:22,160 --> 00:02:25,600 Speaker 2: traditional voice calls, particularly on landlines, to cheaper internet based 52 00:02:25,639 --> 00:02:29,960 Speaker 2: services provided by software companies. CEO Vicky Brady said Telstra's 53 00:02:30,000 --> 00:02:33,480 Speaker 2: working through an evolving competitive landscape, rapid advances in tech, 54 00:02:33,880 --> 00:02:38,000 Speaker 2: changing customer needs, and ongoing inflationary pressures. Telstra will also 55 00:02:38,040 --> 00:02:41,080 Speaker 2: stop its practice of linking price rises on monthly mobile 56 00:02:41,120 --> 00:02:44,520 Speaker 2: plans to inflation, giving it leeway to adjust prices at 57 00:02:44,560 --> 00:02:47,400 Speaker 2: different times caused lots of our cry yesterday. Federal treasure 58 00:02:47,480 --> 00:02:51,120 Speaker 2: Jim Charmers said that the cuts would certainly face scrutiny. 59 00:02:51,280 --> 00:02:55,799 Speaker 2: The Communications at Workers' Union called the job cuts absolutely appalling. 60 00:02:55,840 --> 00:02:58,480 Speaker 1: Michael under story number three, now Sean and Prime Minister 61 00:02:58,520 --> 00:03:01,600 Speaker 1: Anthony Abenezi is under five yesterday about his response to 62 00:03:01,639 --> 00:03:05,360 Speaker 1: the International Criminal Court issuing arrest warrants for the Israeli 63 00:03:05,360 --> 00:03:08,280 Speaker 1: Prime Minister Benjaminette Niahu and HERMAS leaders. 64 00:03:08,680 --> 00:03:11,680 Speaker 2: Mister Alberzi was keen to deflect questions about the announcement, 65 00:03:11,760 --> 00:03:15,160 Speaker 2: Unlike US President Joe Biden, who called the decision by 66 00:03:15,200 --> 00:03:18,880 Speaker 2: the International Criminal Court outrageous. The local Prime Minister said 67 00:03:18,919 --> 00:03:22,079 Speaker 2: he doesn't comment on court processes in Australia, let alone globally, 68 00:03:22,120 --> 00:03:24,880 Speaker 2: to which Australia is not a party. The Opposition leader 69 00:03:24,880 --> 00:03:27,600 Speaker 2: Peter Dutton blasted the PM, saying he had squibbed it 70 00:03:27,800 --> 00:03:31,720 Speaker 2: and sold out Australia. Also yesterday, mister Alberzi reiterated his 71 00:03:31,760 --> 00:03:35,720 Speaker 2: support for Julianasange in the wake of his extradition appeal. 72 00:03:35,800 --> 00:03:39,480 Speaker 2: When in the British High Court, Mister Alberzi said his 73 00:03:39,560 --> 00:03:41,920 Speaker 2: position hadn't changed and there was nothing served by the 74 00:03:41,960 --> 00:03:45,920 Speaker 2: ongoing incarceration of mister Assange. Also yesterday, we found out 75 00:03:45,960 --> 00:03:48,280 Speaker 2: that Australian tourists will be able to start leaving New 76 00:03:48,320 --> 00:03:51,960 Speaker 2: Caledonia after being given the green light by French authorities. 77 00:03:52,200 --> 00:03:55,200 Speaker 1: Storing num before. There's plenty of confusion yesterday around whether 78 00:03:55,240 --> 00:03:58,640 Speaker 1: Star Entertainment did or did not receive an offer from 79 00:03:58,680 --> 00:04:02,720 Speaker 1: hard Rock Hotels and Resorts, with the US based organization 80 00:04:02,880 --> 00:04:05,200 Speaker 1: saying they weren't actually aware of any discussions. 81 00:04:05,680 --> 00:04:09,160 Speaker 2: Sounded like a case of mistaken identity or over enthusiastic reporters, 82 00:04:09,160 --> 00:04:11,560 Speaker 2: and maybe Star didn't mind being associated with a hard 83 00:04:11,640 --> 00:04:15,680 Speaker 2: rock name. Overnight on Monday, hard Rock International denied it 84 00:04:15,720 --> 00:04:18,279 Speaker 2: was linked to any proposal for Star Entertainment, said it 85 00:04:18,360 --> 00:04:21,200 Speaker 2: had not licensed its name to any other proposal and 86 00:04:21,320 --> 00:04:23,839 Speaker 2: it could take legal action if anyone used it. The 87 00:04:23,960 --> 00:04:26,840 Speaker 2: US group said they were investigating the matter. Then yesterday 88 00:04:27,080 --> 00:04:29,600 Speaker 2: This Star locally came out and said the company had 89 00:04:29,640 --> 00:04:32,960 Speaker 2: received inbound interest from a number of external parties regarding 90 00:04:32,960 --> 00:04:37,000 Speaker 2: potential and transactions, including an incomplete and indicative proposal from 91 00:04:37,040 --> 00:04:40,599 Speaker 2: a consortium of investors which included the entity hard Rock 92 00:04:40,680 --> 00:04:44,360 Speaker 2: Hotels and Resorts Pacific, which is actually different to hard 93 00:04:44,440 --> 00:04:48,839 Speaker 2: Rock International. All that confusion sent Stars share price lower yesterday. 94 00:04:49,400 --> 00:04:51,800 Speaker 1: All right, last one, sorry, number five. It is official, 95 00:04:52,000 --> 00:04:55,760 Speaker 1: at least in the ageable c's eyes. Australia's domestic aviation 96 00:04:55,960 --> 00:04:59,200 Speaker 1: sector has recovered from the COVID nineteen pandemic. 97 00:05:00,120 --> 00:05:02,960 Speaker 2: Travel was among the hardest sectors hit by the pandemic, 98 00:05:02,960 --> 00:05:06,440 Speaker 2: airlines in particular, since they couldn't fly people around the competition. 99 00:05:06,480 --> 00:05:09,560 Speaker 2: Watchdog's latest report on the airline industry, released yesterday says 100 00:05:09,600 --> 00:05:13,039 Speaker 2: the major airlines Jetstar, a Quantus, Rex, Virgin Australia and 101 00:05:13,080 --> 00:05:16,080 Speaker 2: the now demised Bonser carried four point nine million domestic 102 00:05:16,080 --> 00:05:18,719 Speaker 2: passengers in March ninety eight point eight percent of the 103 00:05:18,760 --> 00:05:22,719 Speaker 2: March twenty nineteen figure. It means airfares have fallen and 104 00:05:22,839 --> 00:05:25,159 Speaker 2: the A triple C recons they might have further to 105 00:05:25,240 --> 00:05:28,839 Speaker 2: four good news Just an aside here in February twenty 106 00:05:28,839 --> 00:05:31,640 Speaker 2: four the actual number was higher than February twenty nine. 107 00:05:32,160 --> 00:05:34,560 Speaker 2: Couple of one off factors there. One was Taylor Swift Concerts. 108 00:05:34,600 --> 00:05:38,160 Speaker 2: The other was World Wrestling Entertainment holding an event in Perth. 109 00:05:38,360 --> 00:05:39,920 Speaker 2: There you go, There you go. 110 00:05:40,000 --> 00:05:43,120 Speaker 1: Indeed, the top five stories in five minutes. Thank you Sean, 111 00:05:43,440 --> 00:05:46,360 Speaker 1: thank you Michael. It's Wednesday, the twenty second of May 112 00:05:46,400 --> 00:05:49,039 Speaker 1: twenty twenty four, remembered hit follow on the podcast and 113 00:05:49,160 --> 00:05:51,239 Speaker 1: five minutes isn't enough. You can find our longer daily 114 00:05:51,279 --> 00:05:54,400 Speaker 1: show called Fear and Greed wherever you listen to podcasts. 115 00:05:54,600 --> 00:05:56,960 Speaker 1: I'm Michael Thompson, and that was the fast, by business news, 116 00:05:57,000 --> 00:05:58,760 Speaker 1: by fear and greed. Have a great day.