1 00:00:04,200 --> 00:00:06,880 Speaker 1: Welcome to the Fear and Greed Business News Afternoon Report 2 00:00:06,920 --> 00:00:09,720 Speaker 1: for Tuesday, the tenth of September twenty twenty four. I'm 3 00:00:09,760 --> 00:00:12,600 Speaker 1: Sean Almer. Every afternoon, we've got the five stories that 4 00:00:12,680 --> 00:00:14,880 Speaker 1: happen today that you need to know about. Story number one. 5 00:00:14,920 --> 00:00:18,160 Speaker 1: The SMPA six two hundred closed up zero point three 6 00:00:18,200 --> 00:00:21,919 Speaker 1: percent today to eighty twelve points, having earlier in the 7 00:00:22,000 --> 00:00:25,160 Speaker 1: day been up quite a bit more. The banks keep giving, 8 00:00:25,160 --> 00:00:27,720 Speaker 1: with Commonwealth Bank today hitting a new record high of 9 00:00:27,720 --> 00:00:29,920 Speaker 1: one hundred and forty five dollars and twenty four cents 10 00:00:29,920 --> 00:00:32,640 Speaker 1: to share. Ac Quarry Group hit a new record also 11 00:00:32,720 --> 00:00:36,360 Speaker 1: of two hundred and twenty eight dollars fifty share, while Westpac, National, 12 00:00:36,360 --> 00:00:39,360 Speaker 1: Australia Bank and A and Z are trading above or 13 00:00:39,400 --> 00:00:43,240 Speaker 1: at seven year highs. It came after UBS analysts suggested 14 00:00:43,320 --> 00:00:46,800 Speaker 1: investors choose banks over miners, arguing that even at these 15 00:00:46,840 --> 00:00:50,080 Speaker 1: elevated prices, the big banks are likely to do better 16 00:00:50,240 --> 00:00:54,000 Speaker 1: than the resource companies. Also affecting the banks, the regulator, 17 00:00:54,240 --> 00:00:58,080 Speaker 1: the Australian Prudential Regulation Authority, today announced plans to phase 18 00:00:58,200 --> 00:01:01,840 Speaker 1: out bank hybrid securities and force the financial companies to 19 00:01:01,880 --> 00:01:04,920 Speaker 1: replace them with cheaper and more reliable forms of capital 20 00:01:05,200 --> 00:01:07,640 Speaker 1: away from the banks. Energy in telco's did best today, 21 00:01:07,640 --> 00:01:11,160 Speaker 1: while materials companies performed worst. Taking a look at the 22 00:01:11,319 --> 00:01:15,200 Speaker 1: non bank large caps, wistet Global and QBE led the way. 23 00:01:15,319 --> 00:01:19,120 Speaker 1: Fortescue Metals was the main laggard. Story number two. The 24 00:01:19,120 --> 00:01:21,479 Speaker 1: Aussie dollar isn't having much fun at the moment. It's 25 00:01:21,520 --> 00:01:23,840 Speaker 1: trading around sixty six and a half US cents, hit 26 00:01:23,880 --> 00:01:27,680 Speaker 1: by fears and an economic slowdown and disappointing economic data 27 00:01:27,800 --> 00:01:31,039 Speaker 1: out of China. Oil prices have edged up again on 28 00:01:31,080 --> 00:01:35,640 Speaker 1: the back of Hurricane Francine shutting down drilling operations in Texas. 29 00:01:35,680 --> 00:01:38,559 Speaker 1: Still it's trading close to three year lows, goals buying 30 00:01:38,560 --> 00:01:41,200 Speaker 1: twenty five hundred US dollars an ounce, and there has 31 00:01:41,280 --> 00:01:43,959 Speaker 1: been a jump in iron ore prices on hopes it 32 00:01:44,000 --> 00:01:46,840 Speaker 1: may be Beijing we will provide some stimulus to the 33 00:01:46,920 --> 00:01:51,040 Speaker 1: Chinese economy. Story number three. Consumer sentiment has fallen on 34 00:01:51,080 --> 00:01:53,280 Speaker 1: the back of fears about the economic outlook and the 35 00:01:53,360 --> 00:01:57,400 Speaker 1: jobs market. The Westpac Melbourne Institute Index of Consumer Sentiment 36 00:01:57,440 --> 00:02:00,760 Speaker 1: fell half percent, meaning pessimism has been in the dominant 37 00:02:00,760 --> 00:02:04,320 Speaker 1: emotion for more than two years. Westpac Senior economist Matthew 38 00:02:04,360 --> 00:02:07,440 Speaker 1: Hassen says that there's a little sign of the glumness lifting. 39 00:02:07,800 --> 00:02:10,760 Speaker 1: Consumers are less worried about interest rates rising and believe 40 00:02:10,800 --> 00:02:14,000 Speaker 1: the cost of living crisis has ease somewhat, but they 41 00:02:14,040 --> 00:02:16,040 Speaker 1: do fear where the economy is heading and what that 42 00:02:16,080 --> 00:02:19,079 Speaker 1: means for employment. The survey also shows home by a 43 00:02:19,160 --> 00:02:22,880 Speaker 1: sentiment improved slightly in house price expectations have cooled in 44 00:02:23,000 --> 00:02:26,520 Speaker 1: Victoria and New South Wales. Story number four. Well, the 45 00:02:26,560 --> 00:02:29,440 Speaker 1: news wasn't any better in the business sector, with both 46 00:02:29,440 --> 00:02:32,680 Speaker 1: sentiment and conditions tumbling. According to the monthly National Australian 47 00:02:32,680 --> 00:02:35,399 Speaker 1: Bank Survey. The business sector has been the brighter part 48 00:02:35,400 --> 00:02:37,720 Speaker 1: of the economy, but now as n AB chief economist 49 00:02:37,720 --> 00:02:42,280 Speaker 1: Alan Osta says, conditions, which measures jobs, sales and profitability, 50 00:02:42,760 --> 00:02:45,840 Speaker 1: are fairly clearly below average compared to the history of 51 00:02:45,880 --> 00:02:49,200 Speaker 1: the survey. Business confidence has now fallen to negative levels, 52 00:02:49,200 --> 00:02:52,480 Speaker 1: meaning that business is pessimistic. There's also been a strong 53 00:02:52,560 --> 00:02:55,440 Speaker 1: drop in the employment gauge, suggesting the post COVID boom 54 00:02:55,520 --> 00:02:59,360 Speaker 1: period for the labor market is over. Story number five. 55 00:02:59,480 --> 00:03:03,200 Speaker 1: Federal Tree Jim Chalmers will consider negotiating with the Greens 56 00:03:03,240 --> 00:03:06,320 Speaker 1: to push through changes to the Reserve Bank after the 57 00:03:06,400 --> 00:03:10,680 Speaker 1: Coalition rejected reforms around the proposed new interest rates Setting Board. 58 00:03:11,240 --> 00:03:14,760 Speaker 1: The country Central Bank really is becoming a political football 59 00:03:14,880 --> 00:03:18,919 Speaker 1: that won't help good economic policy making. Today, the Shadow 60 00:03:19,000 --> 00:03:21,919 Speaker 1: Treasurer Angus Taylor said the Coalition will oppose plans to 61 00:03:21,960 --> 00:03:25,400 Speaker 1: split the nine person RBA Board into separate committees for 62 00:03:25,440 --> 00:03:30,280 Speaker 1: interstrate setting and for governance unless the six current external 63 00:03:30,800 --> 00:03:33,880 Speaker 1: RBA Board members make it onto the nine member Interest 64 00:03:33,919 --> 00:03:37,080 Speaker 1: Rate Setting Board. The splitting of the board proposal came 65 00:03:37,120 --> 00:03:39,160 Speaker 1: from an independent review of the bank last year, and 66 00:03:39,200 --> 00:03:42,640 Speaker 1: mister Taylor said the way it's planned it opens a 67 00:03:42,640 --> 00:03:46,040 Speaker 1: way for the interstrate Setting Board to be politicized. Actually, 68 00:03:46,040 --> 00:03:48,040 Speaker 1: he said, and I quote, it would leave open the 69 00:03:48,040 --> 00:03:50,760 Speaker 1: option for a stitch up of the Reserve Bank Board 70 00:03:50,920 --> 00:03:54,080 Speaker 1: with legislation needed to pass Parliament. Dr Chalmers said the 71 00:03:54,080 --> 00:03:58,000 Speaker 1: coalition's decision was irresponsible and disappointing and he'll now consider 72 00:03:58,080 --> 00:04:00,760 Speaker 1: negotiating with the Greens. For their part, the Greens have 73 00:04:00,800 --> 00:04:03,040 Speaker 1: made it clear that it wants any new legislation to 74 00:04:03,120 --> 00:04:06,440 Speaker 1: retain the Treasurer's of veto power over the Reserve Bank, 75 00:04:06,760 --> 00:04:08,960 Speaker 1: a power that's already there, but it's never been used 76 00:04:08,960 --> 00:04:11,520 Speaker 1: in the sixty four year history of the Central Bank. 77 00:04:12,160 --> 00:04:14,680 Speaker 1: That's it for the Afternoon Report for Tuesday, the tenth 78 00:04:14,720 --> 00:04:17,040 Speaker 1: of September twenty twenty four. Don't forget to follow on 79 00:04:17,080 --> 00:04:20,040 Speaker 1: the podcast and find Fear and Greed on LinkedIn, Instagram, 80 00:04:20,200 --> 00:04:22,880 Speaker 1: x TikTok and Facebook. Join Michael Thompson and I Tomorrow 81 00:04:22,880 --> 00:04:24,880 Speaker 1: I'm wanning for the Fast Five by Fear and Greed, 82 00:04:24,880 --> 00:04:26,960 Speaker 1: the top five business stories you need to know in 83 00:04:27,080 --> 00:04:29,719 Speaker 1: just five minutes. I'm Sean Elmer. Enjoy your evening.