1 00:00:03,840 --> 00:00:06,660 Jennifer Duke: Welcome to the Fear and Greed Daily Interview. I'm Jennifer 2 00:00:06,660 --> 00:00:10,260 Jennifer Duke: Duke. Regular listeners to the podcast would know Sean Aylmer 3 00:00:10,260 --> 00:00:13,590 Jennifer Duke: frequently speaks to Matthew Kidman about equities, about what he's 4 00:00:13,590 --> 00:00:16,259 Jennifer Duke: watching, what he likes, what he doesn't like. And now 5 00:00:16,260 --> 00:00:18,690 Jennifer Duke: that we're into reporting season, it seems like a pretty 6 00:00:18,690 --> 00:00:21,000 Jennifer Duke: good time to chat to Matthew about the trends he's 7 00:00:21,000 --> 00:00:23,970 Jennifer Duke: seeing and the companies he's keeping an eye on. Matthew 8 00:00:23,970 --> 00:00:28,679 Jennifer Duke: Kidman is Principal at Centennial Asset Management. This information is 9 00:00:28,679 --> 00:00:31,529 Jennifer Duke: general in nature, and you should seek professional advice before 10 00:00:31,530 --> 00:00:34,830 Jennifer Duke: making any investment decisions. But Matthew, welcome back to Fear 11 00:00:34,830 --> 00:00:35,040 Jennifer Duke: and Greed. 12 00:00:36,210 --> 00:00:36,750 Matthew Kidman: Hi, Jennifer. How are you? 13 00:00:37,890 --> 00:00:40,710 Jennifer Duke: I'm good. Thank you very much for coming on and 14 00:00:40,710 --> 00:00:42,270 Jennifer Duke: speaking with me in Sean's absence. 15 00:00:43,680 --> 00:00:43,681 Matthew Kidman: That's all right. 16 00:00:43,681 --> 00:00:46,109 Jennifer Duke: Let's talk a little bit about last week before we get 17 00:00:46,110 --> 00:00:49,319 Jennifer Duke: onto the company's yet still to report. So, CommBank is 18 00:00:49,320 --> 00:00:51,900 Jennifer Duke: one of the only big banks reporting this season. What 19 00:00:51,900 --> 00:00:54,570 Jennifer Duke: did you make of their results? 20 00:00:55,080 --> 00:00:58,500 Matthew Kidman: Yeah. Look, expectations weren't high because, as we know, we've 21 00:00:58,500 --> 00:01:01,470 Matthew Kidman: got a slowing housing and mortgage market. We've all talked 22 00:01:01,470 --> 00:01:04,139 Matthew Kidman: about the mortgage cliff. And one of the things that's 23 00:01:04,469 --> 00:01:07,830 Matthew Kidman: hurt the banks in recent times has been what we 24 00:01:07,830 --> 00:01:11,819 Matthew Kidman: classify as their NIM, their net interest margin. They used to 25 00:01:11,819 --> 00:01:14,370 Matthew Kidman: make more on each loan years ago than they do 26 00:01:14,370 --> 00:01:17,669 Matthew Kidman: today. So the overall NIM for the whole of their 27 00:01:17,670 --> 00:01:20,429 Matthew Kidman: book, it had been coming down, and people were worried 28 00:01:20,429 --> 00:01:23,729 Matthew Kidman: about that. CommBank delivered a pretty good result. The NIM 29 00:01:23,730 --> 00:01:29,309 Matthew Kidman: held up. And even though the outlook wasn't rosy, they 30 00:01:29,309 --> 00:01:31,890 Matthew Kidman: said it was getting tougher, the numbers were good. It 31 00:01:31,890 --> 00:01:34,260 Matthew Kidman: was probably slightly better than what everyone thought, and that 32 00:01:34,260 --> 00:01:36,270 Matthew Kidman: was good enough for the market. They bought that. So 33 00:01:36,750 --> 00:01:39,539 Matthew Kidman: that was a good way for the overall reporting season 34 00:01:39,539 --> 00:01:41,639 Matthew Kidman: to kick off with one of the stocks that people 35 00:01:41,639 --> 00:01:43,949 Matthew Kidman: were worried about actually getting off to a solid, I 36 00:01:43,950 --> 00:01:45,928 Matthew Kidman: wouldn't say brilliant start, but solid start. 37 00:01:46,949 --> 00:01:52,320 Jennifer Duke: There was a little bit of talk about a tycoon tax, if I'm not mistaken, about 38 00:01:52,320 --> 00:01:55,080 Jennifer Duke: potentially leveraging that on some of the banks after I 39 00:01:55,080 --> 00:01:56,910 Jennifer Duke: think they did so in Italy. Do you have any 40 00:01:57,360 --> 00:01:59,910 Jennifer Duke: thoughts on whether or not that's appropriate given those NIMs? 41 00:02:01,710 --> 00:02:04,619 Matthew Kidman: Look, I think it's a much longer discussion and one 42 00:02:04,619 --> 00:02:09,270 Matthew Kidman: worth having at some stage. Since the Global Financial Crisis, 43 00:02:09,600 --> 00:02:14,519 Matthew Kidman: regulation around the banking system has tightened considerably, which was 44 00:02:14,520 --> 00:02:16,829 Matthew Kidman: very necessary at the time, as we know, because things 45 00:02:16,830 --> 00:02:19,019 Matthew Kidman: got out of hand and it turned into a disaster. 46 00:02:19,440 --> 00:02:23,999 Matthew Kidman: But slowly but surely, banks have almost become government extension, 47 00:02:24,000 --> 00:02:27,750 Matthew Kidman: government bodies around the world. We saw that again when 48 00:02:27,750 --> 00:02:29,850 Matthew Kidman: we had the COVID crisis. The banks were reigned in 49 00:02:29,850 --> 00:02:32,160 Matthew Kidman: by the government. I think we've got to get back 50 00:02:32,160 --> 00:02:34,499 Matthew Kidman: and get a bit more balance, and the Italians have 51 00:02:34,500 --> 00:02:37,469 Matthew Kidman: just gone too far in that sense. We need a good 52 00:02:37,469 --> 00:02:40,770 Matthew Kidman: system, we need good regulation, but we need banks to 53 00:02:40,770 --> 00:02:43,290 Matthew Kidman: be able to run their own businesses free of the 54 00:02:43,290 --> 00:02:46,889 Matthew Kidman: burden or extra burden the governments have started to levy 55 00:02:46,889 --> 00:02:49,889 Matthew Kidman: on them. So I'm against the Italian move and I 56 00:02:49,889 --> 00:02:51,870 Matthew Kidman: don't think we should go down that path. And that 57 00:02:51,870 --> 00:02:54,389 Matthew Kidman: said, APRA does a terrific job here, but we need 58 00:02:54,389 --> 00:02:56,758 Matthew Kidman: a little bit of freedom for the banks and their 59 00:02:56,758 --> 00:02:59,670 Matthew Kidman: teams to actually go to work and help the economy grow. 60 00:03:00,300 --> 00:03:03,959 Jennifer Duke: That's a very nice measured perspective. So, James Hardie started 61 00:03:03,960 --> 00:03:06,450 Jennifer Duke: off last week with a very big bang, and investors 62 00:03:06,450 --> 00:03:09,059 Jennifer Duke: responded well when the building materials company said it was 63 00:03:09,059 --> 00:03:12,599 Jennifer Duke: able to expand profit margins. Was it an outlier, do 64 00:03:12,599 --> 00:03:14,610 Jennifer Duke: you think, being able to push up prices like that? 65 00:03:15,929 --> 00:03:18,840 Matthew Kidman: Oh, they've done a terrific job. James Hardie, although an 66 00:03:18,840 --> 00:03:21,330 Matthew Kidman: Australian company with a long history here, has the bulk 67 00:03:21,330 --> 00:03:24,419 Matthew Kidman: of its business in the US, and that's obviously a 68 00:03:24,419 --> 00:03:27,509 Matthew Kidman: very big market. And they're growing into the US and 69 00:03:27,630 --> 00:03:31,080 Matthew Kidman: gaining market share. One of their competitors reported a week 70 00:03:31,080 --> 00:03:34,168 Matthew Kidman: or so earlier, and there was a bit of discounting. 71 00:03:34,169 --> 00:03:36,990 Matthew Kidman: Margins were down, people were worried. James Hardie came out 72 00:03:36,990 --> 00:03:39,240 Matthew Kidman: and did the opposite. They were able to increase their 73 00:03:39,240 --> 00:03:43,200 Matthew Kidman: margins. Volumes, well, have slowed like everywhere else around the 74 00:03:43,200 --> 00:03:46,019 Matthew Kidman: world with interest rates going up, but nowhere near as 75 00:03:46,020 --> 00:03:51,929 Matthew Kidman: much as people thought. The upgrades from analysts were 10, 15, 20% 76 00:03:51,929 --> 00:03:55,170 Matthew Kidman: to valuation. It was a report for the ages in 77 00:03:55,170 --> 00:04:00,780 Matthew Kidman: terms of being able to do pricing power, protect margins, 78 00:04:00,780 --> 00:04:04,290 Matthew Kidman: protect volumes in a tough market. So it was a 79 00:04:04,290 --> 00:04:07,620 Matthew Kidman: great result, and I think the response was deserving. 80 00:04:08,040 --> 00:04:10,139 Jennifer Duke: Stay with me, Matthew. We'll be back in a minute. 81 00:04:16,199 --> 00:04:19,920 Jennifer Duke: My guest this morning is Matthew Kidman, Principal at Centennial Asset 82 00:04:19,920 --> 00:04:23,758 Jennifer Duke: Management. And was there anything else that you particularly liked 83 00:04:23,759 --> 00:04:24,330 Jennifer Duke: last week? 84 00:04:24,960 --> 00:04:28,349 Matthew Kidman: Well, sticking with the building materials, Boral, who, they've sold 85 00:04:28,350 --> 00:04:32,010 Matthew Kidman: the US operations and they mainly operate here in Australia and 86 00:04:32,490 --> 00:04:36,000 Matthew Kidman: mainly in the cement market, they were also able to 87 00:04:36,360 --> 00:04:39,570 Matthew Kidman: generate price increases and surprise the market with their margins 88 00:04:39,570 --> 00:04:42,450 Matthew Kidman: in a pretty tough market, as we know, as building 89 00:04:42,450 --> 00:04:46,080 Matthew Kidman: slows down with a higher interest rate. So what we 90 00:04:46,080 --> 00:04:48,299 Matthew Kidman: all looked for when interest rates started to go up 91 00:04:48,299 --> 00:04:50,130 Matthew Kidman: a year or so ago was who could put their 92 00:04:50,130 --> 00:04:53,279 Matthew Kidman: prices up and who could get away with it and had 93 00:04:53,279 --> 00:04:56,520 Matthew Kidman: enough market power to do that? It seems like companies 94 00:04:56,520 --> 00:04:58,349 Matthew Kidman: that weren't expected to be able to do it, some 95 00:04:58,349 --> 00:05:00,359 Matthew Kidman: of them have been, and I've put Boral into that 96 00:05:00,360 --> 00:05:05,310 Matthew Kidman: camp and maybe even James Hardie. So there's two nice surprises. Otherwise, 97 00:05:05,339 --> 00:05:07,919 Matthew Kidman: most of the businesses that have come out so far, 98 00:05:07,920 --> 00:05:10,380 Matthew Kidman: and we've had a few of the insurance players, we've 99 00:05:10,380 --> 00:05:13,710 Matthew Kidman: had QBE, and we've had some smaller players like Credit Corp, 100 00:05:13,950 --> 00:05:16,020 Matthew Kidman: once we get below that top tier, though, it's a 101 00:05:16,020 --> 00:05:19,080 Matthew Kidman: little bit mixed. But next week we will see a 102 00:05:19,080 --> 00:05:23,609 Matthew Kidman: lot more companies reporting in number, maybe not the size of CBA, 103 00:05:23,910 --> 00:05:26,520 Matthew Kidman: but the amount of companies reporting, and we'll get a 104 00:05:26,520 --> 00:05:29,130 Matthew Kidman: bit better idea. Just to finish off on one that 105 00:05:29,130 --> 00:05:33,359 Matthew Kidman: reported on Friday, which was Nick Scali, which most people 106 00:05:33,360 --> 00:05:36,149 Matthew Kidman: would know, quite a well-known brand name in the retail 107 00:05:36,150 --> 00:05:38,639 Matthew Kidman: furniture area. They came out with a result that was 108 00:05:38,639 --> 00:05:42,570 Matthew Kidman: very strong and surprisingly so as the consumer with the 109 00:05:42,570 --> 00:05:46,440 Matthew Kidman: mortgage cliff supposedly under pressure. They beat the market. And 110 00:05:46,529 --> 00:05:48,870 Matthew Kidman: even though July was down, it wasn't as down as 111 00:05:48,870 --> 00:05:51,900 Matthew Kidman: much as what people expected, and it's up double digits. 112 00:05:51,900 --> 00:05:54,750 Matthew Kidman: So there have been some nice surprises in the first week, 113 00:05:54,750 --> 00:05:56,460 Matthew Kidman: but we'll get a better idea next week when we've 114 00:05:56,460 --> 00:05:58,710 Matthew Kidman: probably got three times the amount of companies reporting. 115 00:05:59,460 --> 00:06:02,370 Jennifer Duke: So we're all still out there buying couches and decking out our living rooms? 116 00:06:02,370 --> 00:06:02,640 Jennifer Duke: Is that- 117 00:06:02,640 --> 00:06:04,650 Matthew Kidman: You wouldn't think so. You would've thought we'd bought enough, 118 00:06:04,650 --> 00:06:05,339 Matthew Kidman: but it seems- 119 00:06:05,339 --> 00:06:05,520 Jennifer Duke: You'd have thought. 120 00:06:05,520 --> 00:06:08,250 Matthew Kidman: ... to be the case. It seems to be the case. 121 00:06:09,389 --> 00:06:11,789 Jennifer Duke: So, sounds like a big week is coming up ahead. 122 00:06:11,790 --> 00:06:13,409 Jennifer Duke: What are you watching in particular? 123 00:06:14,428 --> 00:06:17,099 Matthew Kidman: Yeah. There's lots of companies reporting. There's a number of 124 00:06:17,100 --> 00:06:20,940 Matthew Kidman: retailers again. So a lot of the discretionary retailers have 125 00:06:20,940 --> 00:06:23,520 Matthew Kidman: had a kick along today on the back of Nick Scali. 126 00:06:23,520 --> 00:06:28,469 Matthew Kidman: But we've got players like JB Hi- Fi reporting next week, 127 00:06:28,469 --> 00:06:33,178 Matthew Kidman: which is always a bellwether for the general consumer. It's electronics, 128 00:06:33,178 --> 00:06:35,399 Matthew Kidman: and we bought a lot of electronics during COVID as well. 129 00:06:35,400 --> 00:06:38,310 Matthew Kidman: So it'll be interesting to see what they do. We've 130 00:06:38,310 --> 00:06:41,700 Matthew Kidman: got a whole bunch of different companies. We've had REA, realestate.com, 131 00:06:42,210 --> 00:06:45,210 Matthew Kidman: it was another one out last week on Friday. It 132 00:06:45,420 --> 00:06:47,609 Matthew Kidman: put out a sound set of numbers. But next week 133 00:06:47,940 --> 00:06:50,939 Matthew Kidman: we'll have SEEK and we'll have Carsales, those big platforms 134 00:06:50,940 --> 00:06:53,430 Matthew Kidman: that are consumers. So there's a lot to look out 135 00:06:53,430 --> 00:06:56,640 Matthew Kidman: for in terms of the consumer because that's the part 136 00:06:56,640 --> 00:06:59,250 Matthew Kidman: of the economy, which is about 60% of our economy, 137 00:06:59,640 --> 00:07:03,450 Matthew Kidman: which is now in slowdown mode because the Reserve Bank 138 00:07:03,450 --> 00:07:06,178 Matthew Kidman: deliberately is trying to slow down the economy. So that 139 00:07:06,178 --> 00:07:08,969 Matthew Kidman: will be the key next week, who can do a 140 00:07:08,969 --> 00:07:13,980 Matthew Kidman: Nick Scali and who can push their way through? On 141 00:07:13,980 --> 00:07:15,840 Matthew Kidman: top of that, as I said, there's a lot of companies. 142 00:07:16,020 --> 00:07:19,950 Matthew Kidman: We're getting reports from people like the Seven Network, which 143 00:07:19,950 --> 00:07:22,889 Matthew Kidman: is a media company, and that'll be interesting just to 144 00:07:22,889 --> 00:07:27,450 Matthew Kidman: see how advertising's going. All reports are that advertising's very short, 145 00:07:27,450 --> 00:07:28,980 Matthew Kidman: as they say in the industry, in other words, people 146 00:07:28,980 --> 00:07:31,890 Matthew Kidman: aren't booking in for too long, because of that slowdown. 147 00:07:31,890 --> 00:07:34,890 Matthew Kidman: So the general feel is everyone's just a little bit 148 00:07:34,890 --> 00:07:37,920 Matthew Kidman: tense about where we are in the cycle and the 149 00:07:37,920 --> 00:07:40,830 Matthew Kidman: numbers expected to be bad. So if we do get 150 00:07:40,830 --> 00:07:43,350 Matthew Kidman: numbers like we have this week, like a Nick Scali 151 00:07:43,799 --> 00:07:47,369 Matthew Kidman: or a CBA where they're not quite as bad as 152 00:07:47,369 --> 00:07:50,520 Matthew Kidman: what people think, I think you can expect a rally 153 00:07:50,520 --> 00:07:52,890 Matthew Kidman: in the share prices like we've seen in the first week. 154 00:07:53,760 --> 00:07:56,730 Jennifer Duke: That's really interesting because I also think, I mean, Dr. 155 00:07:56,730 --> 00:08:00,120 Jennifer Duke: Lowe was up in front of Parliament recently and was 156 00:08:00,120 --> 00:08:03,780 Jennifer Duke: talking about the lag effect of those interest rates on 157 00:08:04,020 --> 00:08:06,329 Jennifer Duke: the public, on mortgages and all the rest. Do you 158 00:08:06,330 --> 00:08:08,700 Jennifer Duke: think maybe these results are a little bit too early 159 00:08:08,700 --> 00:08:10,680 Jennifer Duke: to be taking into account some of that shift? 160 00:08:11,700 --> 00:08:15,270 Matthew Kidman: I think the move in interest rates haven't been as 161 00:08:15,270 --> 00:08:18,420 Matthew Kidman: quick as previous cycles. Now, we're not sure why. I 162 00:08:18,420 --> 00:08:23,729 Matthew Kidman: suspect there's some offsetting factors. For example, the consumer got 163 00:08:23,730 --> 00:08:26,730 Matthew Kidman: a lot of money from governments during COVID and saved 164 00:08:26,730 --> 00:08:28,650 Matthew Kidman: a lot of that money, and so there was a buffer 165 00:08:28,710 --> 00:08:32,670 Matthew Kidman: that maybe wasn't there previously. And of course, the overall 166 00:08:32,670 --> 00:08:36,450 Matthew Kidman: economy is being helped along now by pretty strong immigration numbers. 167 00:08:36,809 --> 00:08:39,239 Matthew Kidman: So people are coming into the country. So there's some 168 00:08:39,240 --> 00:08:42,269 Matthew Kidman: offsetting things, but against that is higher costs, especially around 169 00:08:42,270 --> 00:08:45,930 Matthew Kidman: your mortgage. And I think we're just at the front edge. 170 00:08:45,960 --> 00:08:47,670 Matthew Kidman: I don't think it's going to be as bad as 171 00:08:47,670 --> 00:08:49,800 Matthew Kidman: what we would have anticipated, and that's one of the 172 00:08:49,800 --> 00:08:52,890 Matthew Kidman: great revelations over the last three or four months is that 173 00:08:53,070 --> 00:08:55,319 Matthew Kidman: the consumer's more resilient. It's not going to be as 174 00:08:55,320 --> 00:08:58,650 Matthew Kidman: bad as inflation comes down. But I think the turning 175 00:08:58,650 --> 00:09:02,010 Matthew Kidman: point probably came after Easter, maybe May into June where 176 00:09:02,070 --> 00:09:05,370 Matthew Kidman: things softened. We got an update from Meyer, it wasn't 177 00:09:05,370 --> 00:09:07,920 Matthew Kidman: their full set of accounts last week, just an update 178 00:09:07,920 --> 00:09:10,530 Matthew Kidman: on where they're at. And it became pretty obvious that 179 00:09:10,530 --> 00:09:13,470 Matthew Kidman: the last six to eight weeks has got a lot tougher. 180 00:09:13,889 --> 00:09:16,170 Matthew Kidman: So we're at the front edge, and we will see 181 00:09:16,170 --> 00:09:18,449 Matthew Kidman: a bit of it in the commentary about how the 182 00:09:18,450 --> 00:09:20,880 Matthew Kidman: new year started. Maybe not in the numbers reported because 183 00:09:20,880 --> 00:09:23,190 Matthew Kidman: they're to the end of June, but we'll definitely see 184 00:09:23,190 --> 00:09:26,850 Matthew Kidman: it in the commentary about July and August. And probably 185 00:09:26,970 --> 00:09:29,370 Matthew Kidman: the worst of it, or possibly the worst, will be 186 00:09:29,370 --> 00:09:31,978 Matthew Kidman: AGM season, which is October, November when we would have 187 00:09:32,070 --> 00:09:36,329 Matthew Kidman: had a noticeable slowdown in where things are going. A smaller retailer 188 00:09:36,330 --> 00:09:39,540 Matthew Kidman: that came out at the end of Friday last week 189 00:09:39,929 --> 00:09:42,360 Matthew Kidman: was Baby Bunting. We already knew their numbers, but what 190 00:09:42,360 --> 00:09:44,849 Matthew Kidman: we didn't know before that was how the new year 191 00:09:44,849 --> 00:09:49,860 Matthew Kidman: had started, the post-financial year, July, and they're reporting that 192 00:09:49,860 --> 00:09:52,589 Matthew Kidman: they're down 9% on sales. So I think it's starting 193 00:09:52,590 --> 00:09:54,179 Matthew Kidman: to get traction in a meaningful way. 194 00:09:54,479 --> 00:09:56,400 Jennifer Duke: Is that fewer people having babies in COVID? 195 00:09:56,400 --> 00:09:59,040 Matthew Kidman: Yeah. I don't think that's helping. They've got a structural 196 00:09:59,040 --> 00:10:02,819 Matthew Kidman: issue there as well. And birth rates are down. So 197 00:10:03,630 --> 00:10:06,240 Matthew Kidman: with someone who's the dominant player in that industry and 198 00:10:06,719 --> 00:10:11,070 Matthew Kidman: they start to require the industry to itself grow, not 199 00:10:11,070 --> 00:10:13,920 Matthew Kidman: just getting market share because they are the dominant players. They need the 200 00:10:13,920 --> 00:10:17,010 Matthew Kidman: industry to be buoyant. And unfortunately, birth rates are down 201 00:10:18,030 --> 00:10:20,309 Matthew Kidman: for the country, which is not always good. 202 00:10:21,780 --> 00:10:24,090 Jennifer Duke: And so are there any sectors that might offer a few 203 00:10:24,090 --> 00:10:25,290 Jennifer Duke: surprises next week? 204 00:10:25,950 --> 00:10:30,029 Matthew Kidman: Look, I think if we stick with... The consumer is 205 00:10:30,029 --> 00:10:33,118 Matthew Kidman: an important thing. It's not only discretionary retail. It's a 206 00:10:33,120 --> 00:10:37,770 Matthew Kidman: whole bunch of different areas including car sales, home sales 207 00:10:37,770 --> 00:10:41,250 Matthew Kidman: and home renovations. So I'd be looking out mainly for 208 00:10:41,250 --> 00:10:43,708 Matthew Kidman: those areas. And as I said, I think also we'll 209 00:10:43,710 --> 00:10:48,449 Matthew Kidman: get some insights into media with Seven coming out. I 210 00:10:48,480 --> 00:10:51,420 Matthew Kidman: think that'll be good. We've got other players in the 211 00:10:51,480 --> 00:10:55,380 Matthew Kidman: online game, Temple & Webster. We had Cettire, which is the 212 00:10:55,380 --> 00:10:58,920 Matthew Kidman: luxury goods online site that did really well. I think 213 00:10:58,920 --> 00:11:02,490 Matthew Kidman: that's what we need for the share market to go 214 00:11:02,490 --> 00:11:05,160 Matthew Kidman: higher. We had a rally through June and July, and 215 00:11:05,160 --> 00:11:07,559 Matthew Kidman: then it's come off a bit in August. But I think if 216 00:11:07,559 --> 00:11:09,809 Matthew Kidman: that rally is to spread and we're back into a 217 00:11:09,809 --> 00:11:13,319 Matthew Kidman: bull market, the market through these results have to look 218 00:11:13,320 --> 00:11:15,900 Matthew Kidman: through this bit of a valley of earnings because, as 219 00:11:15,900 --> 00:11:19,199 Matthew Kidman: I said, financial conditions are tightening. If they can do 220 00:11:19,200 --> 00:11:22,049 Matthew Kidman: that through this period, and companies have shown that they 221 00:11:22,049 --> 00:11:24,689 Matthew Kidman: can handle this period by putting prices up and keeping 222 00:11:24,929 --> 00:11:28,440 Matthew Kidman: a lid on costs, I think it will be a 223 00:11:28,440 --> 00:11:30,390 Matthew Kidman: platform for the market to go higher in the back 224 00:11:30,390 --> 00:11:31,020 Matthew Kidman: end of the year. 225 00:11:31,860 --> 00:11:34,530 Jennifer Duke: Thank you very much, Matthew. That was fascinating. And thank 226 00:11:34,530 --> 00:11:35,879 Jennifer Duke: you for talking to Fear and Greed. 227 00:11:36,330 --> 00:11:37,079 Matthew Kidman: Thanks very much. 228 00:11:37,620 --> 00:11:41,879 Jennifer Duke: That was Matthew Kidman, Principal at Centennial Asset Management. This 229 00:11:41,879 --> 00:11:45,240 Jennifer Duke: is the Fear and Greed Daily Interview. Remember, this information 230 00:11:45,240 --> 00:11:48,360 Jennifer Duke: is general in nature, and you should seek professional advice 231 00:11:48,360 --> 00:11:51,900 Jennifer Duke: before making any investment decisions. Join us every morning for 232 00:11:51,900 --> 00:11:54,900 Jennifer Duke: the full episode of Fear and Greed, Australia's most popular 233 00:11:54,900 --> 00:11:59,100 Jennifer Duke: business podcast. I'm Jennifer Duke, Economics Correspondent for Capital Brief 234 00:11:59,190 --> 00:12:01,560 Jennifer Duke: and filling in for Sean Aylmer. Have a great day.