1 00:00:03,840 --> 00:00:07,120 Speaker 1: It's Monday, the twentieth of May twenty twenty four. Welcome 2 00:00:07,160 --> 00:00:09,480 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,480 --> 00:00:11,320 Speaker 1: where we give you the top five business stories you 4 00:00:11,360 --> 00:00:13,920 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:14,000 --> 00:00:15,480 Speaker 1: and good morning Adam Lang. 6 00:00:15,840 --> 00:00:17,680 Speaker 2: Good morning Michael, Adam. 7 00:00:17,760 --> 00:00:20,639 Speaker 1: Five stories to rip through in five minutes. Let's get going. 8 00:00:20,680 --> 00:00:23,800 Speaker 1: Story number one. Superannuation funds are set for a bumper 9 00:00:23,880 --> 00:00:26,840 Speaker 1: year in terms of member returns, with the median Growth 10 00:00:26,840 --> 00:00:30,760 Speaker 1: fund expected to provide an eight percent lift for this 11 00:00:30,840 --> 00:00:34,000 Speaker 1: financial year, and that's after a nine percent bump last year. 12 00:00:34,600 --> 00:00:37,400 Speaker 2: Yes, Michael's superannuation is proving to be a very smart 13 00:00:37,400 --> 00:00:39,200 Speaker 2: place to put your money, or at least it has 14 00:00:39,280 --> 00:00:42,440 Speaker 2: been while the median growth fund on average when backwards 15 00:00:42,520 --> 00:00:45,159 Speaker 2: last month. The performance for the financial year so far, 16 00:00:45,240 --> 00:00:48,240 Speaker 2: in the face of so much economic and political uncertainty, 17 00:00:48,640 --> 00:00:52,000 Speaker 2: is impressive. And this is according to research house chant West. 18 00:00:52,280 --> 00:00:54,720 Speaker 2: A growth fund has between sixty one and eighty percent 19 00:00:54,760 --> 00:00:58,520 Speaker 2: in growth assets. That's equity's private debt, property, private equity 20 00:00:58,560 --> 00:01:00,720 Speaker 2: and things like that. At this point point, it looks 21 00:01:00,760 --> 00:01:04,080 Speaker 2: like five straight months of positive returns. There was a 22 00:01:04,120 --> 00:01:06,919 Speaker 2: one point seven percent decline in April and then another 23 00:01:07,080 --> 00:01:10,440 Speaker 2: positive return this month. Now, if this lasts, the return 24 00:01:10,560 --> 00:01:13,839 Speaker 2: for patient long term investors in super over two years 25 00:01:14,120 --> 00:01:17,520 Speaker 2: will be a very impressive eighteen percent. And over the 26 00:01:17,560 --> 00:01:20,440 Speaker 2: longer term, super funds continue to meet their risk and 27 00:01:20,520 --> 00:01:23,640 Speaker 2: return objectives and according to chart West, are set to 28 00:01:23,680 --> 00:01:27,440 Speaker 2: post a thirteenth positive return out of fifteen years. High 29 00:01:27,520 --> 00:01:30,080 Speaker 2: growth funds have posted a ten percent return over the 30 00:01:30,080 --> 00:01:33,920 Speaker 2: past year, while more conservative balance funds have returned six 31 00:01:33,959 --> 00:01:35,680 Speaker 2: point three percent on average. 32 00:01:36,080 --> 00:01:39,200 Speaker 1: Now, Adam, I love this story because compulsory superannuation, which 33 00:01:39,280 --> 00:01:43,160 Speaker 1: was introduced in nineteen ninety two, has proven to be 34 00:01:43,240 --> 00:01:45,240 Speaker 1: a real success, not just because people are forced to 35 00:01:45,240 --> 00:01:48,360 Speaker 1: save for retirement, but also because superproducts have actually provided 36 00:01:48,400 --> 00:01:49,160 Speaker 1: good returns. 37 00:01:49,400 --> 00:01:52,320 Speaker 2: That's right, Michael. And since the introduction of compulsory super, 38 00:01:52,360 --> 00:01:55,160 Speaker 2: the median growth fund has returned seven point nine percent 39 00:01:55,160 --> 00:01:58,240 Speaker 2: per anum. That's again, according to chard West, the annual 40 00:01:58,280 --> 00:02:00,720 Speaker 2: inflation increase over the same peer it is two point 41 00:02:00,840 --> 00:02:03,880 Speaker 2: seven percent, and that gives a real return of five 42 00:02:03,920 --> 00:02:06,520 Speaker 2: point two percent. That's well above the typical three point 43 00:02:06,560 --> 00:02:09,560 Speaker 2: five percent target. Even looking at the past twenty years, 44 00:02:09,639 --> 00:02:13,679 Speaker 2: which includes three major sheer market downturns the GFC in 45 00:02:13,720 --> 00:02:16,160 Speaker 2: two thousand and seven to two thousand and nine, COVID 46 00:02:16,240 --> 00:02:19,240 Speaker 2: nineteen in twenty twenty, and the high inflation and rising 47 00:02:19,280 --> 00:02:22,600 Speaker 2: interest rates of twenty twenty two, super funds have returned 48 00:02:22,800 --> 00:02:26,080 Speaker 2: seven point two percent per annum. Super is all about 49 00:02:26,120 --> 00:02:30,280 Speaker 2: long term patient investing and Michael, it's working on to. 50 00:02:30,280 --> 00:02:33,240 Speaker 1: Story number two now. Adam and Corporate regulator ask has 51 00:02:33,240 --> 00:02:37,120 Speaker 1: put Australia's banks on notice, saying some lenders quote effectively 52 00:02:37,240 --> 00:02:40,760 Speaker 1: abandoned customers who are struggling with the cost of living crisis. 53 00:02:40,960 --> 00:02:44,440 Speaker 1: Assex says, some home loan lenders have made accessing financial 54 00:02:44,440 --> 00:02:47,880 Speaker 1: assistance so hard that more than one in three Australians 55 00:02:47,919 --> 00:02:50,800 Speaker 1: actually dropped out of the application process at least once. 56 00:02:51,480 --> 00:02:55,560 Speaker 2: Michael, this is pretty alarming. ASEK reviewed ten large home lenders, 57 00:02:55,560 --> 00:02:59,160 Speaker 2: including the big four banks mcquarie, Bendig and adelaide Ig, 58 00:02:59,280 --> 00:03:01,880 Speaker 2: and a couple of none lenders, and found that they 59 00:03:01,919 --> 00:03:04,679 Speaker 2: should be doing more to support Australians struggling to meet 60 00:03:04,680 --> 00:03:07,840 Speaker 2: their repayments. The report also found that forty percent of 61 00:03:07,880 --> 00:03:11,920 Speaker 2: customers who received hardship assistance through reduction or deferral of 62 00:03:11,960 --> 00:03:16,440 Speaker 2: payments fell into arrears again right after the assistance period ended, 63 00:03:16,760 --> 00:03:19,280 Speaker 2: and there are more customers actually needing help. In the 64 00:03:19,320 --> 00:03:21,720 Speaker 2: last quarter of twenty twenty three, there was a fifty 65 00:03:21,840 --> 00:03:24,639 Speaker 2: four percent increase in the number of people contacting their 66 00:03:24,720 --> 00:03:29,680 Speaker 2: lenders about difficulty making their homeland repayments. ASCIK actually warned 67 00:03:29,800 --> 00:03:33,000 Speaker 2: lenders last year that they needed to meet their obligations 68 00:03:33,000 --> 00:03:37,120 Speaker 2: to customers experiencing financial hardship before even conducting this review. 69 00:03:37,560 --> 00:03:40,720 Speaker 2: Chair Joe Longo has once again put lenders on notice, 70 00:03:40,760 --> 00:03:44,560 Speaker 2: saying that where appropriate, ASSEK will not hesitate to take 71 00:03:44,680 --> 00:03:45,400 Speaker 2: enforcement action. 72 00:03:45,720 --> 00:03:48,920 Speaker 1: Story number three. A very soft weekend for auctions Adam 73 00:03:48,960 --> 00:03:51,840 Speaker 1: with the lowest preliminary clearance rates so far this year, 74 00:03:51,880 --> 00:03:55,440 Speaker 1: equal actually to the Easter long weekend. Core Logic reported 75 00:03:55,480 --> 00:03:57,480 Speaker 1: the clearance rate across the Capital cities came in at 76 00:03:57,520 --> 00:03:59,480 Speaker 1: seventy one point one percent. That's down one and a 77 00:03:59,520 --> 00:04:01,080 Speaker 1: half percent sent on last week. 78 00:04:01,560 --> 00:04:04,040 Speaker 2: Yeah, Michael, and few auctions were held this weekend, with 79 00:04:04,120 --> 00:04:07,280 Speaker 2: two thousand and eighty six properties going under the hammer nationwide. 80 00:04:07,360 --> 00:04:10,040 Speaker 2: That's down about two hundred and fifty on last week, 81 00:04:10,280 --> 00:04:12,720 Speaker 2: but up on the same time last year. Taking a 82 00:04:12,800 --> 00:04:15,920 Speaker 2: quick look around the Capitol Sydney preliminary clearance rate came 83 00:04:15,920 --> 00:04:18,800 Speaker 2: in at seventy four point nine percent. That's the lowest 84 00:04:18,800 --> 00:04:21,960 Speaker 2: in four weeks for Sydney, Melbourne had sixty eight point four, 85 00:04:22,200 --> 00:04:25,680 Speaker 2: Brisbane sixty nine point six, almost eighty percent in Adelaide 86 00:04:25,760 --> 00:04:28,839 Speaker 2: and just fifty seven point one in Canberra. That's the 87 00:04:28,920 --> 00:04:30,039 Speaker 2: lowest since February. 88 00:04:30,240 --> 00:04:34,440 Speaker 1: Story number four. Westpac will require salaried workers earning up 89 00:04:34,440 --> 00:04:36,359 Speaker 1: to one hundred and forty thousand dollars a year to 90 00:04:36,440 --> 00:04:39,800 Speaker 1: fill out time sheets. But it isn't to check on employees, 91 00:04:39,880 --> 00:04:43,360 Speaker 1: but to make sure the bank's actually not underpaying staff 92 00:04:43,480 --> 00:04:45,120 Speaker 1: when they work excessive hours. 93 00:04:45,360 --> 00:04:48,320 Speaker 2: Yeah, Michael. The bank told staff about the time cards 94 00:04:48,320 --> 00:04:51,400 Speaker 2: for employees that earned salaries between ninety thousand dollars and 95 00:04:51,480 --> 00:04:54,480 Speaker 2: one hundred and forty thousand dollars. That rolls up all conditions. 96 00:04:54,640 --> 00:04:57,000 Speaker 2: They want the staff to record their actual hours worked 97 00:04:57,080 --> 00:05:00,279 Speaker 2: and ensure that they receive the right entitlements. It's part 98 00:05:00,279 --> 00:05:03,440 Speaker 2: of a broader change across the sector following concerns that 99 00:05:03,600 --> 00:05:08,239 Speaker 2: large amounts of unpaid overtime mean employees pay risks dipping 100 00:05:08,360 --> 00:05:12,000 Speaker 2: below minimum hourly rates. The Australian Financial Review is reporting 101 00:05:12,000 --> 00:05:15,000 Speaker 2: that other banks and firms are either considering or already 102 00:05:15,040 --> 00:05:18,679 Speaker 2: require salaried staff to record their hours. The Finance sector Union, 103 00:05:18,760 --> 00:05:22,279 Speaker 2: which is seeking further safeguards on overtime in negotiations for 104 00:05:22,320 --> 00:05:25,560 Speaker 2: a new agreement with Westpac, welcomed the bank's move. 105 00:05:25,560 --> 00:05:27,680 Speaker 1: All right onto the last one, sorry number five. The 106 00:05:27,720 --> 00:05:31,520 Speaker 1: World Super Rich Club now has fifteen members with fortunes 107 00:05:31,600 --> 00:05:34,120 Speaker 1: over one hundred billion dollars, the most on record, and 108 00:05:34,160 --> 00:05:37,159 Speaker 1: this is largely thanks to artificial intelligence, luxury goods, and 109 00:05:37,200 --> 00:05:40,760 Speaker 1: geopolitical shifts. The combined net worth for these people is 110 00:05:40,839 --> 00:05:44,040 Speaker 1: up thirteen percent this year to two point two trillion dollars, 111 00:05:44,080 --> 00:05:47,839 Speaker 1: according to the Bloomberg Billionaires Index, much higher than the 112 00:05:47,880 --> 00:05:51,360 Speaker 1: pace of inflation and the broader stock market. Between them, Adam, 113 00:05:51,440 --> 00:05:54,320 Speaker 1: they hold nearly a quarter of the wealth of the 114 00:05:54,320 --> 00:05:56,920 Speaker 1: world's five hundred richest people. 115 00:05:57,320 --> 00:06:02,080 Speaker 2: Michael, these numbers are staggering. Loreal Hires, Francoise Bettencourt Meyers, 116 00:06:02,440 --> 00:06:06,719 Speaker 2: Dell Technologies founder Michael Dell, and Mexican billionaire Carlos Slim 117 00:06:06,880 --> 00:06:09,880 Speaker 2: have reached the milestone in the past five months. Bettoncourt 118 00:06:09,920 --> 00:06:12,919 Speaker 2: Meyers became the first woman to reach the mark, after 119 00:06:12,960 --> 00:06:16,080 Speaker 2: shares of the luxury cosmetics company jumped. The seventy year 120 00:06:16,080 --> 00:06:19,279 Speaker 2: old ranks fourteenth on the index with a net worth 121 00:06:19,440 --> 00:06:22,600 Speaker 2: of one hundred and one billion. The top three haven't changed. 122 00:06:22,720 --> 00:06:26,880 Speaker 2: Number one is LVMH founder and chief executive officer Bernard Arnaut. 123 00:06:27,160 --> 00:06:30,680 Speaker 2: Amazon founder Jeff Bezos is second, and at number three 124 00:06:31,040 --> 00:06:32,520 Speaker 2: is Tesla's Elon Musk. 125 00:06:32,839 --> 00:06:34,880 Speaker 1: All right, there we go, the top five business stories 126 00:06:34,920 --> 00:06:35,560 Speaker 1: in five minutes. 127 00:06:35,560 --> 00:06:37,120 Speaker 2: Thank you, Adam, Thank you Michael. 128 00:06:37,520 --> 00:06:40,520 Speaker 1: It's Monday, the twentieth of May twenty twenty four. Remember 129 00:06:40,560 --> 00:06:43,040 Speaker 1: to hit follow on the podcast. If five minutes isn't enough, 130 00:06:43,040 --> 00:06:45,120 Speaker 1: you can find our longer daily show called Fear and 131 00:06:45,160 --> 00:06:48,279 Speaker 1: Greed wherever you listen to podcasts. I'm Michael Thompson and 132 00:06:48,279 --> 00:06:50,559 Speaker 1: that was the fast five business news by Fear and Greed. 133 00:06:50,920 --> 00:06:51,600 Speaker 1: Have a great day.