1 00:00:06,200 --> 00:00:09,200 Speaker 1: Welcome to Fear and Greed business news you can use Today. 2 00:00:09,240 --> 00:00:12,120 Speaker 1: The Reserve Bank warns that wages will not keep pace 3 00:00:12,200 --> 00:00:15,520 Speaker 1: with inflation. Uranium stocks take a tumble as the AI 4 00:00:15,640 --> 00:00:19,240 Speaker 1: debate continues, and one nation raises the prospect of joining 5 00:00:19,320 --> 00:00:22,200 Speaker 1: the coalition plus spunning. This wins the right to keep 6 00:00:22,280 --> 00:00:25,680 Speaker 1: using facial recognition, and the Winter Olympics get underway in 7 00:00:25,720 --> 00:00:28,960 Speaker 1: northern Italy. It is Friday, the sixth of February twenty 8 00:00:29,040 --> 00:00:32,519 Speaker 1: twenty six. I'm Michael Thompson and good morning Simon Anderson. 9 00:00:32,840 --> 00:00:34,520 Speaker 2: Good morning, Michael. It's good to be here. 10 00:00:34,760 --> 00:00:37,240 Speaker 1: It's great to have you jumping in for Sean, who 11 00:00:37,320 --> 00:00:40,080 Speaker 1: is absent just for this morning. He'll be back this 12 00:00:40,120 --> 00:00:42,880 Speaker 1: afternoon with the afternoon report. So if you're already missing 13 00:00:43,040 --> 00:00:45,160 Speaker 1: Sean Aylmer, you won't have to wait. 14 00:00:45,080 --> 00:00:47,400 Speaker 2: Too long for one day special. Yeah, Duz. 15 00:00:48,120 --> 00:00:52,800 Speaker 1: The main story this morning, Simon. The Reserve Bank delivered 16 00:00:52,840 --> 00:00:56,000 Speaker 1: some grim news this week that went beyond just the 17 00:00:56,120 --> 00:01:00,000 Speaker 1: rate rise, revealing that wages won't keep pace within flame 18 00:01:00,320 --> 00:01:02,880 Speaker 1: until twenty twenty seven. This is one of those things 19 00:01:02,880 --> 00:01:06,120 Speaker 1: that you kind of get caught up in the headline result, right, 20 00:01:06,160 --> 00:01:09,080 Speaker 1: and everyone's talking about the interest rate hike, and then 21 00:01:09,080 --> 00:01:11,560 Speaker 1: you start to dig a little bit deeper and find 22 00:01:11,560 --> 00:01:12,520 Speaker 1: some other nasties. 23 00:01:13,160 --> 00:01:17,200 Speaker 2: So the RBA's updated forecasts show real wages going backwards 24 00:01:17,319 --> 00:01:20,600 Speaker 2: until mid twenty twenty seven. It's bad news for households, 25 00:01:20,640 --> 00:01:23,280 Speaker 2: and it undermines the government's claim that they've been delivering 26 00:01:23,440 --> 00:01:27,440 Speaker 2: above inflation pay gains. Maths is pretty simple. If your 27 00:01:27,440 --> 00:01:29,920 Speaker 2: boss gives you three and a half percent pay rise, 28 00:01:29,959 --> 00:01:32,640 Speaker 2: you're going backwards when inflation's running at three point eight 29 00:01:32,920 --> 00:01:36,840 Speaker 2: and your mortgage payments just jumped. So remember Tuesday's rate 30 00:01:36,880 --> 00:01:39,360 Speaker 2: hike ads about ninety five dollars a month to a 31 00:01:39,400 --> 00:01:42,240 Speaker 2: six hundred thousand dollars mortgage. But the real pain is 32 00:01:42,280 --> 00:01:46,440 Speaker 2: this squeeze. As wages rise three percent, inflation three point eight, 33 00:01:46,480 --> 00:01:51,000 Speaker 2: mortgage costs up, you're materially worse off politically. 34 00:01:51,200 --> 00:01:53,920 Speaker 1: This is hard, isn't it, And it highlights the tough 35 00:01:53,920 --> 00:01:57,000 Speaker 1: spot that the government's in now because they've campaigned on 36 00:01:57,120 --> 00:02:01,120 Speaker 1: being good economic managers and really delivering for workers. 37 00:02:02,240 --> 00:02:05,840 Speaker 2: So if real wages are falling and mortgage pain intensifying, 38 00:02:05,920 --> 00:02:09,120 Speaker 2: that narrative is under pressure. So it shows just how 39 00:02:09,160 --> 00:02:12,400 Speaker 2: corrosive inflation is for all of us. And it does 40 00:02:12,520 --> 00:02:16,440 Speaker 2: raise some tough questions about the government's spending. So Reserve 41 00:02:16,440 --> 00:02:19,120 Speaker 2: Bank Governor Michelle Bullock has been at pains not to 42 00:02:19,160 --> 00:02:22,680 Speaker 2: criticize the government's spending. She says fiscal policy is quote 43 00:02:22,720 --> 00:02:26,880 Speaker 2: not my business. But economists are openly questioning whether it's 44 00:02:26,919 --> 00:02:29,440 Speaker 2: time for her to push back. You know, higher government 45 00:02:29,480 --> 00:02:32,840 Speaker 2: spending means higher demand, which lifts prices and leaves the 46 00:02:32,919 --> 00:02:35,640 Speaker 2: RBA doing all the heavy lifting to fight inflation. 47 00:02:36,080 --> 00:02:38,120 Speaker 1: Yeah, it is. It's just, as I said, one of 48 00:02:38,120 --> 00:02:41,000 Speaker 1: those stories that you don't know it at the time. 49 00:02:41,240 --> 00:02:43,320 Speaker 1: A few days later you dig a little bit deeper 50 00:02:43,320 --> 00:02:46,040 Speaker 1: and suddenly it's like, okay, we could be in for 51 00:02:46,040 --> 00:02:48,800 Speaker 1: a bit of a challenge in the future. Turning to 52 00:02:48,880 --> 00:02:53,640 Speaker 1: markets now, and we had the day before yesterday, the 53 00:02:53,680 --> 00:02:59,320 Speaker 1: miners had a stellar day yesterday, not so much so. 54 00:02:59,320 --> 00:03:03,919 Speaker 2: Markets jesting the Reserve Bank's new hawkish stance on rates 55 00:03:03,919 --> 00:03:05,800 Speaker 2: and that wage outlook. So the S and P A 56 00:03:05,919 --> 00:03:09,799 Speaker 2: SX two hundred fell zero point four percent to eighty 57 00:03:09,919 --> 00:03:13,000 Speaker 2: eight hundred and eighty nine point two. That snaps a 58 00:03:13,120 --> 00:03:15,560 Speaker 2: short streak of two updates. 59 00:03:15,400 --> 00:03:18,160 Speaker 1: It is that really enough for a streak like it 60 00:03:18,600 --> 00:03:20,600 Speaker 1: feels like for a streak. It's got to be minimum 61 00:03:20,639 --> 00:03:21,680 Speaker 1: five or something. 62 00:03:21,720 --> 00:03:24,639 Speaker 2: But we've had two updates. We've now got one down. 63 00:03:24,800 --> 00:03:25,240 Speaker 1: There we go. 64 00:03:25,440 --> 00:03:28,480 Speaker 2: It's it's and more importantly, I mean a bit of context. 65 00:03:28,480 --> 00:03:31,120 Speaker 2: It's down from above nine thy one hundred back in 66 00:03:31,200 --> 00:03:34,800 Speaker 2: October ye so there is a change. The big four 67 00:03:34,840 --> 00:03:39,680 Speaker 2: banks largely held up yesterday. Higher rates give banks a 68 00:03:39,760 --> 00:03:42,840 Speaker 2: chance to lift their interest margins, but the miners are 69 00:03:42,840 --> 00:03:46,720 Speaker 2: the stories. The miners fell as metal prices dipped. Copper 70 00:03:46,760 --> 00:03:49,920 Speaker 2: fell three percent, so that hit BHP shares, Gold fell 71 00:03:49,960 --> 00:03:54,760 Speaker 2: two percent, Silver plunged twelve percent. So this this volatility 72 00:03:54,760 --> 00:03:58,120 Speaker 2: and precious metals, it's difficult for me to wrap my 73 00:03:58,160 --> 00:04:01,440 Speaker 2: head around. But gold's now down twenty percent from its 74 00:04:01,440 --> 00:04:06,160 Speaker 2: peak at silver's down forty from its highs. So it's 75 00:04:06,320 --> 00:04:10,320 Speaker 2: it's largely related to uncertainty about what America's monetary policy 76 00:04:10,760 --> 00:04:15,160 Speaker 2: might look like under a new Trump appointed Federal Reserve governor. 77 00:04:15,920 --> 00:04:19,800 Speaker 2: We also had uranium stocks yesterday copying are hiding, so Paladin, deep, yellow, 78 00:04:19,839 --> 00:04:21,400 Speaker 2: bus energy all down sharply. 79 00:04:21,680 --> 00:04:24,000 Speaker 1: Yeah, we need to talk a little bit more about 80 00:04:24,000 --> 00:04:26,599 Speaker 1: that because we don't talk a huge amount about uranium stocks. 81 00:04:26,760 --> 00:04:30,240 Speaker 1: But yesterday that was a sharp shift, and it all 82 00:04:30,400 --> 00:04:32,120 Speaker 1: came from overseas, right. 83 00:04:32,279 --> 00:04:37,040 Speaker 2: So uranium fell on quarterly results from AMD, that's Advanced 84 00:04:37,120 --> 00:04:39,920 Speaker 2: micro Device as a US chip maker that's been riding 85 00:04:39,960 --> 00:04:44,520 Speaker 2: the AI wave. Now i'll tie them together. AMD guided 86 00:04:44,560 --> 00:04:47,919 Speaker 2: for lower earnings despite booming demand for AI chips, and 87 00:04:47,960 --> 00:04:51,200 Speaker 2: its shares fell seventeen percent. What matters here is that 88 00:04:51,279 --> 00:04:54,360 Speaker 2: it's left investors questioning if the AI boom is all 89 00:04:54,360 --> 00:04:57,880 Speaker 2: it's cracked up to be. So remember, uranium had been 90 00:04:57,960 --> 00:05:01,279 Speaker 2: running hot on this idea that AI data centers need 91 00:05:01,360 --> 00:05:05,440 Speaker 2: massive amounts of power and nuclear is an answer for that. Microsoft, Amazon, 92 00:05:05,560 --> 00:05:09,320 Speaker 2: Google all signing deals with nuclear providers, and uranium stocks 93 00:05:09,320 --> 00:05:12,920 Speaker 2: had been bit up on that thesis. AMD's outlook has 94 00:05:13,000 --> 00:05:15,200 Speaker 2: raised doubts about that growth trajectory. 95 00:05:15,960 --> 00:05:18,560 Speaker 1: We're going to talk a little bit more about AI 96 00:05:19,240 --> 00:05:23,520 Speaker 1: later in the show because some extraordinary figures and we 97 00:05:23,560 --> 00:05:26,599 Speaker 1: talk about the amount that these big companies are investing 98 00:05:26,839 --> 00:05:29,840 Speaker 1: into AI, and there's a cracker of a spend coming 99 00:05:29,920 --> 00:05:31,880 Speaker 1: up from Google. But get to that a little bit later. 100 00:05:32,720 --> 00:05:34,520 Speaker 1: What else was happening on international markets? 101 00:05:34,560 --> 00:05:38,960 Speaker 2: So elsewhere markets? Bitcoins month long losing streak continues. It's 102 00:05:39,000 --> 00:05:41,560 Speaker 2: down below seventy two thousand US dollars. 103 00:05:41,720 --> 00:05:45,440 Speaker 1: See that is a streak, right, that's like a month. 104 00:05:45,600 --> 00:05:48,520 Speaker 1: A month long streak is a streak. Two days ad 105 00:05:48,560 --> 00:05:50,080 Speaker 1: a and a streak. But sorry I interrupted you. 106 00:05:50,360 --> 00:05:52,720 Speaker 2: In context, it's down sharply. It was over one hundred 107 00:05:52,720 --> 00:05:55,440 Speaker 2: and twenty one thousand. Remember, so oil is trading well 108 00:05:55,480 --> 00:05:59,000 Speaker 2: above decemb belows it's now what seventy US dollars a 109 00:05:59,040 --> 00:06:03,479 Speaker 2: barrel for Brent reaction to the Iran tensions, and for 110 00:06:03,600 --> 00:06:06,200 Speaker 2: us the Ausie dollar is pushing through seventy usns. That's 111 00:06:06,240 --> 00:06:10,320 Speaker 2: strengthened by this hawker's shift from the RBA. So Australian 112 00:06:10,360 --> 00:06:14,000 Speaker 2: bonds are trading now at a premium relative to the 113 00:06:14,040 --> 00:06:16,200 Speaker 2: rest of the world. So put simply, our interest rates 114 00:06:16,240 --> 00:06:19,680 Speaker 2: are higher than overseas, so investors move their money here 115 00:06:19,800 --> 00:06:22,520 Speaker 2: looking for better returns. That pushes the Aussie dollar up. 116 00:06:22,839 --> 00:06:26,279 Speaker 1: All right, we have got a fair bit still to cover. 117 00:06:26,360 --> 00:06:29,680 Speaker 1: We're talking, We've got a bit of politics, and the 118 00:06:30,520 --> 00:06:35,839 Speaker 1: Bunning's story about facial recognition is a fascinating one. Plenty 119 00:06:35,960 --> 00:06:37,600 Speaker 1: still to come. Stick around. We'll be back at a 120 00:06:37,640 --> 00:06:47,320 Speaker 1: moment with the rest of the day's business news. Simon, 121 00:06:47,360 --> 00:06:49,479 Speaker 1: it seems every day there is a new update on 122 00:06:49,560 --> 00:06:53,680 Speaker 1: the coalition either falling apart or maybe coming back together again, 123 00:06:53,760 --> 00:06:57,479 Speaker 1: but more likely falling apart. Pauline Hanson now has opened 124 00:06:57,480 --> 00:07:00,120 Speaker 1: the door to working with the Libs and the Nats, 125 00:07:00,440 --> 00:07:01,360 Speaker 1: but on her terms. 126 00:07:02,160 --> 00:07:05,239 Speaker 2: So One Nation's pulling at a record twenty two percent, 127 00:07:05,360 --> 00:07:07,479 Speaker 2: that's ahead of the Coalition for the first time, and 128 00:07:07,560 --> 00:07:11,200 Speaker 2: Hanson's told Sky News that she'd support them to form government, 129 00:07:11,840 --> 00:07:14,560 Speaker 2: and she added that a three way coalition between One Nation, 130 00:07:14,720 --> 00:07:16,920 Speaker 2: the Libs and the Nats might be the only way 131 00:07:16,960 --> 00:07:19,840 Speaker 2: to move forward and be Labour's massive majority in the 132 00:07:19,880 --> 00:07:23,000 Speaker 2: House of Reps. Now, she says she's not likely to 133 00:07:23,000 --> 00:07:25,560 Speaker 2: be in government anytime soon, although she adds neither is 134 00:07:25,600 --> 00:07:27,880 Speaker 2: by the looks of it, the Coalition or the National Party. 135 00:07:28,080 --> 00:07:29,320 Speaker 1: That's fairly accurate. 136 00:07:29,800 --> 00:07:32,680 Speaker 2: David Little Proud, the National's leader, has described the prospect 137 00:07:32,760 --> 00:07:37,080 Speaker 2: of a one nation Liberal National alliance is quite purely hypothetical, 138 00:07:37,360 --> 00:07:41,280 Speaker 2: and he suggests everyone takes a cold shower. Hanson says 139 00:07:41,280 --> 00:07:43,880 Speaker 2: she's a conservative at heart and will work with the 140 00:07:43,920 --> 00:07:46,560 Speaker 2: Libs and Gnats to give them supply, but she also added, 141 00:07:46,680 --> 00:07:48,440 Speaker 2: would I join up to the rabble they are at 142 00:07:48,440 --> 00:07:50,640 Speaker 2: the moment no way in the wide world. 143 00:07:51,760 --> 00:07:55,640 Speaker 1: There's as a number of these veteran politicians who just 144 00:07:55,720 --> 00:07:59,200 Speaker 1: have a gift for cutting straight through a love a 145 00:07:59,280 --> 00:08:01,520 Speaker 1: line like that. They are a rabble and no way 146 00:08:01,560 --> 00:08:03,240 Speaker 1: in the world would you join up with them at 147 00:08:03,280 --> 00:08:08,120 Speaker 1: the moment. The serious one now, Simon. The Bondai stabbing 148 00:08:08,200 --> 00:08:12,640 Speaker 1: inquest has handed down findings and there is a lot 149 00:08:12,680 --> 00:08:16,360 Speaker 1: of parts to this, but they've called out a major 150 00:08:16,600 --> 00:08:18,320 Speaker 1: failing in mental health care. 151 00:08:19,280 --> 00:08:23,480 Speaker 2: So remember Joel Couchi stabbed sixteen people and he killed 152 00:08:23,600 --> 00:08:26,600 Speaker 2: six at Westfield and Bondi junction in Sydney and April 153 00:08:26,640 --> 00:08:29,920 Speaker 2: twenty twenty four before he was shot by police. So 154 00:08:29,960 --> 00:08:33,560 Speaker 2: the coroner has found that he was experiencing psychosis during 155 00:08:33,559 --> 00:08:36,360 Speaker 2: the attack and had a long history of schizophrenia and 156 00:08:36,520 --> 00:08:40,480 Speaker 2: wasn't receiving adequate treatment. So the coroner's referred his former 157 00:08:40,520 --> 00:08:44,520 Speaker 2: psychiatrist to Queensland Health authorities for review and she's made 158 00:08:44,600 --> 00:08:48,000 Speaker 2: recommendations for reform of the mental health system. She's calling 159 00:08:48,040 --> 00:08:50,680 Speaker 2: on the New South Wales government to improve mental health 160 00:08:50,679 --> 00:08:54,000 Speaker 2: outreach services and to provide short term housing for people 161 00:08:54,040 --> 00:08:55,280 Speaker 2: with mental health issues. 162 00:08:55,720 --> 00:08:58,120 Speaker 1: Such a tragic story, that is, and you can imagine 163 00:08:58,120 --> 00:09:01,360 Speaker 1: that for the families of the victims, it would just 164 00:09:01,440 --> 00:09:03,679 Speaker 1: be reliving it over and over again, and you can 165 00:09:03,760 --> 00:09:06,120 Speaker 1: only hope that something will come out of it, which 166 00:09:06,160 --> 00:09:10,400 Speaker 1: is the purpose of these findings. Now, we talked yesterday, 167 00:09:10,400 --> 00:09:13,000 Speaker 1: well not you and I, but Sean and I. But 168 00:09:13,400 --> 00:09:17,040 Speaker 1: you are new Sean today. We talked yesterday about the 169 00:09:17,080 --> 00:09:21,560 Speaker 1: plan to sell off sixty seven Defense properties, including as 170 00:09:21,679 --> 00:09:25,720 Speaker 1: some that are really prime real estate in the big cities, 171 00:09:26,480 --> 00:09:29,320 Speaker 1: And as you would expect, reactions to that are starting 172 00:09:29,360 --> 00:09:31,280 Speaker 1: to come in and some of them are quite strong. 173 00:09:31,920 --> 00:09:34,360 Speaker 2: So it's an amazing array of assets that Defense is 174 00:09:34,360 --> 00:09:38,520 Speaker 2: planning to sell. Right There's golf courses, rifle ranges, office buildings, 175 00:09:38,559 --> 00:09:42,480 Speaker 2: there's even an island in Sydney Harbor. So the hopes 176 00:09:42,520 --> 00:09:44,920 Speaker 2: are that this allows thousands of new homes to be built. 177 00:09:44,920 --> 00:09:46,960 Speaker 2: I don't know if they're going on the island. But 178 00:09:47,000 --> 00:09:51,640 Speaker 2: it also lets Defense reinvest into military equipment. But you know, 179 00:09:51,720 --> 00:09:53,520 Speaker 2: here's a sign of what a long and drawn out 180 00:09:53,559 --> 00:09:57,160 Speaker 2: process this is likely to be. Veterans and heritage groups 181 00:09:57,160 --> 00:09:58,640 Speaker 2: are already raising concerns. 182 00:09:58,800 --> 00:10:01,800 Speaker 1: Yeah, and I've talked before about you had veteran politicians 183 00:10:01,800 --> 00:10:04,000 Speaker 1: who are great at delivering a line that cuts through 184 00:10:04,240 --> 00:10:07,320 Speaker 1: RSL National President Peter Tinley. We can probably put him 185 00:10:07,320 --> 00:10:09,760 Speaker 1: on that list as well. He said, these aren't empty 186 00:10:09,800 --> 00:10:11,720 Speaker 1: paddocks on a spreadsheet. 187 00:10:11,840 --> 00:10:14,440 Speaker 2: So he's warning that some sales will take a decade 188 00:10:14,440 --> 00:10:18,360 Speaker 2: and cost a fortune in remediation, and this billion dollar 189 00:10:18,440 --> 00:10:21,840 Speaker 2: bottom line may look very different when the final accounting 190 00:10:21,880 --> 00:10:25,120 Speaker 2: is done. The heritage advocates say turning the sites into 191 00:10:25,120 --> 00:10:29,240 Speaker 2: housing could be a great loss to future generations. Now, 192 00:10:29,280 --> 00:10:33,440 Speaker 2: Defense Minister Richard Marles he acknowledges that some military leaders 193 00:10:33,440 --> 00:10:36,360 Speaker 2: oppose it. He says they have emotional attachments to attachment 194 00:10:36,440 --> 00:10:39,240 Speaker 2: to where they've served, but he argues that the heritage 195 00:10:39,320 --> 00:10:42,120 Speaker 2: value belongs to the Australian people and right now they 196 00:10:42,120 --> 00:10:45,439 Speaker 2: can't see those properties anyway because they're behind defense walls. 197 00:10:45,880 --> 00:10:48,240 Speaker 1: I think you might have a point there. Now. I 198 00:10:48,280 --> 00:10:52,760 Speaker 1: mentioned earlier Bunnings has successfully overturned a privacy ruling that 199 00:10:52,920 --> 00:10:57,320 Speaker 1: bandit's use of facial recognition to combat retail crime. Retail 200 00:10:57,360 --> 00:10:59,640 Speaker 1: crime is becoming such a big issue, and it's not 201 00:10:59,640 --> 00:11:01,640 Speaker 1: just that we've talked about this in the past. The 202 00:11:01,640 --> 00:11:05,680 Speaker 1: fact that, particularly in Victoria for instance, all the supermarkets 203 00:11:05,720 --> 00:11:08,680 Speaker 1: are having to introduce measures a lot of videos being 204 00:11:08,800 --> 00:11:11,520 Speaker 1: used in order to protect staff and to protect stock 205 00:11:11,559 --> 00:11:12,319 Speaker 1: from being stolen. 206 00:11:13,080 --> 00:11:16,360 Speaker 2: So Bunnings was trialing technology that watches people enter its 207 00:11:16,360 --> 00:11:19,600 Speaker 2: stores and compares them to a database of repeat offenders. 208 00:11:20,000 --> 00:11:24,240 Speaker 2: And so it was told by the Privacy Commissioner to stop. 209 00:11:24,640 --> 00:11:26,600 Speaker 2: But now it appealed, and now an appeal in the 210 00:11:26,600 --> 00:11:30,480 Speaker 2: Administrative Review Tribunal has given Bunnings the green light. So 211 00:11:30,520 --> 00:11:33,280 Speaker 2: Bunning says retail crime is out of control. It says 212 00:11:33,320 --> 00:11:36,400 Speaker 2: staff are being threatened and abused, and they need tools 213 00:11:36,440 --> 00:11:40,600 Speaker 2: to protect workers and stop repeat offenders. It says its 214 00:11:40,640 --> 00:11:44,360 Speaker 2: intent in trialing the technology was to help protect people 215 00:11:44,400 --> 00:11:48,400 Speaker 2: from serious criminal conduct and from organized retail crime. And 216 00:11:48,400 --> 00:11:50,839 Speaker 2: the tribunal said they can go ahead, but they need 217 00:11:50,880 --> 00:11:52,960 Speaker 2: to be a bit better at advising customers of what 218 00:11:52,960 --> 00:11:55,600 Speaker 2: they're doing, and they need to be better at ensuring 219 00:11:55,640 --> 00:11:57,160 Speaker 2: they protect all of our privacy. 220 00:11:57,480 --> 00:12:01,839 Speaker 1: That makes sense. Turning to international news, now, Google's parent 221 00:12:01,960 --> 00:12:06,280 Speaker 1: Alphabet has announced plans to spend up to one hundred 222 00:12:06,320 --> 00:12:09,880 Speaker 1: and eighty five billion dollars on AI this year. That 223 00:12:10,000 --> 00:12:13,360 Speaker 1: is double what they spent in twenty twenty five. That 224 00:12:13,480 --> 00:12:14,880 Speaker 1: is a staggering amount. 225 00:12:15,520 --> 00:12:18,400 Speaker 2: So this is yet another signal that big tech is 226 00:12:18,440 --> 00:12:23,160 Speaker 2: going all in on AI, so alphabets spending plans well 227 00:12:23,160 --> 00:12:26,480 Speaker 2: ahead of anything Wall Street expected. Most of it goes 228 00:12:26,520 --> 00:12:29,719 Speaker 2: to servers and data centers and networking equipment and all 229 00:12:29,720 --> 00:12:32,760 Speaker 2: the stuff they need to power their Gemini AI models 230 00:12:32,760 --> 00:12:36,440 Speaker 2: and their cloud business. They posted results. Their fourth quarter 231 00:12:36,480 --> 00:12:39,080 Speaker 2: results were strong. Revenue of one hundred and thirty billion 232 00:12:39,160 --> 00:12:42,360 Speaker 2: US dollars beat expectations. Their cloud business was up forty 233 00:12:42,400 --> 00:12:47,719 Speaker 2: eight percent. CEO Sundharpachai said the company seeing AI investments 234 00:12:47,840 --> 00:12:50,280 Speaker 2: drive revenue and growth across the board. 235 00:12:51,200 --> 00:12:53,400 Speaker 1: What I find really curious about this is that there's 236 00:12:53,440 --> 00:12:55,640 Speaker 1: a tension here, isn't there with what we saw from 237 00:12:55,679 --> 00:12:57,400 Speaker 1: AMD earlier, and we talked about that. 238 00:12:57,880 --> 00:13:01,400 Speaker 2: So that's right. So AMD beat expectation despite their shares falling. 239 00:13:02,080 --> 00:13:04,960 Speaker 2: The stock crashed seventeen percent on their outlook, even though 240 00:13:05,000 --> 00:13:08,240 Speaker 2: their revenue and their earnings were ahead of expectations. So 241 00:13:08,280 --> 00:13:10,600 Speaker 2: the stories tell us sort of different sides of this 242 00:13:10,679 --> 00:13:14,199 Speaker 2: AI rollout to Google and Meta and Microsoft all spending 243 00:13:14,280 --> 00:13:17,400 Speaker 2: record amounts on AI infrastructure. So this demand is real, 244 00:13:17,679 --> 00:13:20,200 Speaker 2: but most of that money is flowing to Invidia, not 245 00:13:20,320 --> 00:13:23,600 Speaker 2: to AMD AMDs. If you like fighting for second place 246 00:13:23,679 --> 00:13:26,440 Speaker 2: in AI chips. It's a booming market, but they're losing 247 00:13:26,480 --> 00:13:30,560 Speaker 2: the share battle. So this matters for Australian investors and 248 00:13:30,600 --> 00:13:32,160 Speaker 2: it is worth paying attention. 249 00:13:31,920 --> 00:13:36,600 Speaker 1: To, yeah, especially when the AI infrastructure buildout is happening. Right, 250 00:13:36,640 --> 00:13:39,839 Speaker 1: there's hundreds of billions of dollars as being spent by 251 00:13:39,880 --> 00:13:43,600 Speaker 1: these hyperscalers and that is actually that is real money. 252 00:13:43,880 --> 00:13:46,400 Speaker 2: So this infrastructure buildout is up there with the biggest 253 00:13:46,480 --> 00:13:50,800 Speaker 2: ever in history. But if AI starts to automate stuff 254 00:13:50,840 --> 00:13:54,040 Speaker 2: that previously required expensive software subscriptions, there's a lot of 255 00:13:54,040 --> 00:13:56,200 Speaker 2: other tech companies that are going to look a bit fragile. 256 00:13:56,480 --> 00:13:59,240 Speaker 2: So Wall Street's outlook is kind of writing on a 257 00:13:59,280 --> 00:14:02,400 Speaker 2: single question. You know, is AI going to change the world? 258 00:14:02,440 --> 00:14:05,040 Speaker 2: And if it does, who wins and who loses? So 259 00:14:05,120 --> 00:14:07,520 Speaker 2: it's all up. The story is bullish for data centers, 260 00:14:07,520 --> 00:14:10,480 Speaker 2: bullish for power demand, even bullish for uranium stocks, but 261 00:14:10,559 --> 00:14:13,000 Speaker 2: picking the right chip company is going to prove harder 262 00:14:13,040 --> 00:14:16,360 Speaker 2: than it looks. So even Google's shares Alphabets shares fell 263 00:14:16,400 --> 00:14:19,560 Speaker 2: initially on the spending news. So investors are torn between 264 00:14:19,600 --> 00:14:22,480 Speaker 2: this idea of wanting companies to invest big in AI 265 00:14:23,200 --> 00:14:25,680 Speaker 2: and worrying those investments are going to hurt margins. 266 00:14:26,520 --> 00:14:29,600 Speaker 1: All right, let's finish up with something a little bit 267 00:14:29,640 --> 00:14:31,320 Speaker 1: larger and something that's probably going to consume us for 268 00:14:31,360 --> 00:14:33,320 Speaker 1: the next couple of weeks, if I'm honest. The Winter 269 00:14:33,360 --> 00:14:35,160 Speaker 1: Olympics finally. 270 00:14:34,800 --> 00:14:38,360 Speaker 2: Here, Finally, the opening ceremonies early tomorrow morning, our time. 271 00:14:38,600 --> 00:14:40,640 Speaker 2: Some events have already kicked off. The curling has been 272 00:14:40,680 --> 00:14:41,760 Speaker 2: underway for a day or two. 273 00:14:42,920 --> 00:14:45,800 Speaker 1: I haven't been watching the curling yet. I hadn't realized 274 00:14:45,800 --> 00:14:48,200 Speaker 1: that it started. I find curling to be the most 275 00:14:48,280 --> 00:14:52,880 Speaker 1: curious sport. It's described as kind of like chess on ice. 276 00:14:53,520 --> 00:14:56,800 Speaker 1: Gorgeous to watch that, right, Yeah, yeah, but hey, if 277 00:14:56,880 --> 00:14:59,160 Speaker 1: chess on ice can be in the Winter Olympics, then 278 00:14:59,200 --> 00:15:01,480 Speaker 1: surely normal chess can be in the Summer Olympics. But 279 00:15:01,720 --> 00:15:05,480 Speaker 1: maybe that is a high horse and a campaign that 280 00:15:05,520 --> 00:15:06,200 Speaker 1: I'm not going to win. 281 00:15:06,960 --> 00:15:09,960 Speaker 2: So Australia's sending its largest team ever to the Winter Olympics. 282 00:15:09,960 --> 00:15:12,680 Speaker 2: Most of them are now based in the tiny, tax 283 00:15:12,720 --> 00:15:15,200 Speaker 2: free ski town of Lavigno, which is high in the 284 00:15:15,240 --> 00:15:19,480 Speaker 2: Italian Alps. Flag bearers for the opening ceremony mogul skier 285 00:15:19,560 --> 00:15:23,040 Speaker 2: Jakara Anthony and aerial skier Matt Graham. Anthony is the 286 00:15:23,080 --> 00:15:26,840 Speaker 2: defending Olympic champion. She won gold in Beijing and she's 287 00:15:26,880 --> 00:15:29,480 Speaker 2: going for something no Australian has ever done at a 288 00:15:29,480 --> 00:15:31,480 Speaker 2: Winter Olympics defending her title. 289 00:15:31,920 --> 00:15:33,840 Speaker 1: You can tell this as a business podcast because you 290 00:15:33,880 --> 00:15:35,680 Speaker 1: managed to sneak in there the fact that it's a 291 00:15:35,800 --> 00:15:39,120 Speaker 1: tax free, a tax free town. Now up next is 292 00:15:39,160 --> 00:15:42,680 Speaker 1: Fear Ingreed Q and a our guest today is Gary Mortimer, 293 00:15:42,720 --> 00:15:46,840 Speaker 1: Professor Gary Mortimer. He's from Queensland University of Technology. This 294 00:15:46,920 --> 00:15:49,440 Speaker 1: is all about the big retailers, right, We're talking about 295 00:15:49,640 --> 00:15:52,040 Speaker 1: kind of had iconic names like Sax and Macy's out 296 00:15:52,080 --> 00:15:55,120 Speaker 1: of the States that are in real trouble and here 297 00:15:55,120 --> 00:15:58,120 Speaker 1: we've got David Jones and Meyer are shrinking and this 298 00:15:58,200 --> 00:16:01,480 Speaker 1: is all about basically can they or are we going 299 00:16:01,520 --> 00:16:04,480 Speaker 1: to end up with just one? There's only enough room 300 00:16:04,680 --> 00:16:07,480 Speaker 1: in the market for one of these players. Gary's got 301 00:16:07,520 --> 00:16:09,280 Speaker 1: a great insight into all of that, and that's coming 302 00:16:09,320 --> 00:16:11,880 Speaker 1: up next in the Fear and Greed playlist or at 303 00:16:11,880 --> 00:16:13,920 Speaker 1: Fearangreed dot com. Today you wished to be sign up 304 00:16:13,920 --> 00:16:18,880 Speaker 1: for our free daily newsletter. Simon. Thank you for jumping 305 00:16:18,920 --> 00:16:20,840 Speaker 1: in the chair and filling in for Sean today. It's 306 00:16:20,880 --> 00:16:22,240 Speaker 1: been thank you for having me. 307 00:16:22,280 --> 00:16:23,000 Speaker 2: It's been good fun. 308 00:16:23,080 --> 00:16:25,400 Speaker 1: Yah. It's Friday, the fifth of February twenty twenty six. 309 00:16:25,520 --> 00:16:27,720 Speaker 1: Make sure you're following the podcast and please join us 310 00:16:27,720 --> 00:16:30,280 Speaker 1: online on LinkedIn and Instagram. I'm Michael Thompson. That was 311 00:16:30,280 --> 00:16:31,840 Speaker 1: Fear and Greed. Have a great day.