1 00:00:04,019 --> 00:00:07,020 Michael Thompson: The Reserve Bank has a blunt warning for anyone wanting 2 00:00:07,020 --> 00:00:10,260 Michael Thompson: a big wage rise. The Albanese government looks for a 3 00:00:10,260 --> 00:00:13,469 Michael Thompson: reason to go to the polls again, and Woodside gives 4 00:00:13,469 --> 00:00:17,100 Michael Thompson: the go ahead for a 10.5 billion dollar oil project. 5 00:00:17,190 --> 00:00:21,120 Michael Thompson: It's Wednesday, the 21st of June, 2023. Welcome to Fear 6 00:00:21,120 --> 00:00:24,840 Michael Thompson: and Greed, Australia's most popular business podcast. I'm Michael Thompson, 7 00:00:24,840 --> 00:00:26,310 Michael Thompson: and good morning, Sean Aylmer. 8 00:00:26,550 --> 00:00:27,810 Sean Aylmer: Good morning, Michael. 9 00:00:28,349 --> 00:00:31,859 Michael Thompson: Sean, after the show today, you have an interview that, 10 00:00:32,098 --> 00:00:35,879 Michael Thompson: look, I think it is worth anybody in business listening 11 00:00:35,879 --> 00:00:39,240 Michael Thompson: to today's conversation. You're speaking with Cara Peek, who is 12 00:00:39,270 --> 00:00:42,449 Michael Thompson: a lawyer and an entrepreneur, and she's the co- founder 13 00:00:42,450 --> 00:00:47,909 Michael Thompson: of Cultural IQ, which is an organization providing what's your, 14 00:00:47,909 --> 00:00:51,419 Michael Thompson: I suppose you describe it as culturally appropriate training to 15 00:00:51,420 --> 00:00:52,260 Michael Thompson: Aussie businesses. 16 00:00:52,830 --> 00:00:57,210 Sean Aylmer: Yes. Now, Cara, she's an indigenous woman and her background 17 00:00:57,210 --> 00:01:04,229 Sean Aylmer: is in training or helping businesses understand the cultural sensitivities 18 00:01:04,230 --> 00:01:07,020 Sean Aylmer: around First Nations people, but it goes beyond that. It's 19 00:01:07,020 --> 00:01:10,680 Sean Aylmer: about anyone, and so we talk about how companies and 20 00:01:10,680 --> 00:01:14,340 Sean Aylmer: firms should handle it, should think about it. Just understanding 21 00:01:14,340 --> 00:01:17,280 Sean Aylmer: some of the complexities of it is a great starting 22 00:01:17,280 --> 00:01:20,550 Sean Aylmer: point, becoming more aware. We've talked to Cara about that. 23 00:01:20,700 --> 00:01:21,989 Sean Aylmer: I think it's something that we're going to hear a 24 00:01:21,990 --> 00:01:27,059 Sean Aylmer: lot more about in coming years as hopefully more workplaces 25 00:01:27,059 --> 00:01:30,299 Sean Aylmer: become more culturally diverse with First Nations people and others 26 00:01:30,690 --> 00:01:33,750 Sean Aylmer: and just so I think it's a very worthwhile conversation to 27 00:01:33,750 --> 00:01:34,860 Sean Aylmer: have and well worth a listen. 28 00:01:35,100 --> 00:01:37,559 Michael Thompson: Yeah, absolutely. It's coming up a little bit later on. 29 00:01:37,950 --> 00:01:41,370 Michael Thompson: The main story this morning though, Sean, the Reserve Bank 30 00:01:41,370 --> 00:01:45,449 Michael Thompson: has provided a pretty blunt warning. If workers demand wage 31 00:01:45,450 --> 00:01:49,350 Michael Thompson: rises to match higher inflation and companies index their prices 32 00:01:49,350 --> 00:01:52,590 Michael Thompson: to the cost of living, then interest rates unfortunately will 33 00:01:52,590 --> 00:01:53,550 Michael Thompson: just keep rising. 34 00:01:54,060 --> 00:01:56,460 Sean Aylmer: Yes. The minutes of the Reserve Bank board meeting showed 35 00:01:56,460 --> 00:01:58,799 Sean Aylmer: just how worried the Central Bank is about the labor 36 00:01:58,800 --> 00:02:01,799 Sean Aylmer: market in terms of too much strength and not enough 37 00:02:01,799 --> 00:02:05,129 Sean Aylmer: productivity growth. The Reserve Bank lifted the benchmark rate 25 38 00:02:05,129 --> 00:02:08,820 Sean Aylmer: basis points to 4.1% at the beginning of this month, 39 00:02:08,820 --> 00:02:12,149 Sean Aylmer: a couple of weeks ago, surprising many commentators and triggering 40 00:02:12,150 --> 00:02:15,840 Sean Aylmer: a rush of downgrades for economic growth. In fact, every 41 00:02:15,840 --> 00:02:19,710 Sean Aylmer: major bank over the past fortnight has lowered expectations for 42 00:02:19,710 --> 00:02:24,029 Sean Aylmer: growth. The minutes say, " That firms increasing prices and self- 43 00:02:24,240 --> 00:02:27,840 Sean Aylmer: sustaining wages growth linked to past rates of inflation will 44 00:02:27,840 --> 00:02:31,470 Sean Aylmer: make it much more difficult for the Bank to contain 45 00:02:31,470 --> 00:02:35,279 Sean Aylmer: inflation," and until it contains inflation, it's just going to 46 00:02:35,280 --> 00:02:36,419 Sean Aylmer: keep lifting interest rates. 47 00:02:37,320 --> 00:02:40,469 Michael Thompson: Sean, that's all okay to say, right, but how do 48 00:02:40,469 --> 00:02:43,409 Michael Thompson: you actually stop it from happening? People are going to 49 00:02:43,410 --> 00:02:47,190 Michael Thompson: demand higher wages because they're having to pay more for 50 00:02:47,220 --> 00:02:49,650 Michael Thompson: everything in the shops and their power bills and everything, 51 00:02:49,800 --> 00:02:52,290 Michael Thompson: and then companies are going to keep passing on higher 52 00:02:52,290 --> 00:02:53,340 Michael Thompson: prices if they can. 53 00:02:53,880 --> 00:02:56,129 Sean Aylmer: Yes, very good point, Michael. Now, the best way to 54 00:02:56,130 --> 00:02:59,250 Sean Aylmer: stop it is to slow the economy down, which is 55 00:02:59,250 --> 00:03:04,500 Sean Aylmer: exactly what interest rate rises do. It also pushes unemployment 56 00:03:04,500 --> 00:03:08,130 Sean Aylmer: higher. The labor market has been on an absolute tear 57 00:03:08,130 --> 00:03:12,780 Sean Aylmer: since late 2021, creating 1.1 million jobs, and the level 58 00:03:12,780 --> 00:03:16,679 Sean Aylmer: of employment is now almost 8% above its pre- pandemic 59 00:03:16,680 --> 00:03:22,230 Sean Aylmer: level. Pretty remarkable. Mostly there've been full- time jobs. That 60 00:03:22,230 --> 00:03:26,608 Sean Aylmer: means a lot more money in the economy. Underemployment whereby 61 00:03:26,610 --> 00:03:29,880 Sean Aylmer: people can't get enough work, that's at its lowest level 62 00:03:29,880 --> 00:03:33,030 Sean Aylmer: in 15 years. Yesterday, we've got some insight into how 63 00:03:33,030 --> 00:03:35,819 Sean Aylmer: much higher the unemployment rate, which is currently at 3. 64 00:03:36,029 --> 00:03:41,130 Sean Aylmer: 6%, needs to go to stop inflation. Deputy Governor Michelle 65 00:03:41,130 --> 00:03:46,800 Sean Aylmer: Bullock said, " An unemployment rate of 4. 5% is the lowest possible 66 00:03:46,800 --> 00:03:52,379 Sean Aylmer: level consistent with the Reserve Bank's inflation target." What she's 67 00:03:52,379 --> 00:03:56,070 Sean Aylmer: saying, unemployment doesn't have to get to 4. 5% before rates 68 00:03:56,070 --> 00:03:59,790 Sean Aylmer: stop rising, but unless it starts to rise, we are 69 00:03:59,790 --> 00:04:02,670 Sean Aylmer: still going to have a bunch of rate rises. The 70 00:04:02,670 --> 00:04:06,870 Sean Aylmer: Central Bank expects that the unemployment rate will hit about 4. 71 00:04:06,870 --> 00:04:10,740 Sean Aylmer: 5% by late next year though I've got to say 72 00:04:10,740 --> 00:04:14,640 Sean Aylmer: thus far, the labor market has proven very resilient. Of 73 00:04:14,640 --> 00:04:18,960 Sean Aylmer: course, when the unemployment rate rises, that translates to tens 74 00:04:18,960 --> 00:04:22,590 Sean Aylmer: of thousands of job losses. In fact, it's about 140, 000 75 00:04:22,950 --> 00:04:26,428 Sean Aylmer: jobs that we need to lose. Not exactly something to 76 00:04:26,428 --> 00:04:29,609 Sean Aylmer: look forward to, but it's kind of the flip side 77 00:04:29,609 --> 00:04:32,880 Sean Aylmer: to the interest rate debate. It's what happens to employment. 78 00:04:33,839 --> 00:04:37,140 Michael Thompson: Really, it seems like it's impossible to please everybody, like 79 00:04:37,140 --> 00:04:39,960 Michael Thompson: you can't keep everybody happy in this situation, can you? 80 00:04:40,650 --> 00:04:43,229 Sean Aylmer: No. I mean, that's just an economy though, really. There's 81 00:04:43,230 --> 00:04:46,020 Sean Aylmer: always good with the bad. I often think about investing. 82 00:04:46,020 --> 00:04:48,870 Sean Aylmer: For every buyer 'cause there's a great deal, there's a seller 83 00:04:48,930 --> 00:04:51,150 Sean Aylmer: who doesn't think it's a great deal. Economy's a bit 84 00:04:51,150 --> 00:04:53,789 Sean Aylmer: the same way. You push up interest rates because you 85 00:04:53,790 --> 00:04:57,240 Sean Aylmer: need to stop inflation. That slows the economy down and 86 00:04:57,300 --> 00:05:00,779 Sean Aylmer: that will hurt employment, so it's a dismal science for 87 00:05:00,779 --> 00:05:01,620 Sean Aylmer: a reason, Michael. 88 00:05:01,889 --> 00:05:05,279 Michael Thompson: I'm glad you are the economist here. I'm too idealistic to 89 00:05:05,279 --> 00:05:08,250 Michael Thompson: be an economist. I just want everyone to be happy, Sean. 90 00:05:08,670 --> 00:05:11,040 Sean Aylmer: Yes. Well, you know, we wouldn't have jobs, would we? 91 00:05:11,370 --> 00:05:14,940 Michael Thompson: No, we wouldn't. How did the local share market go yesterday? 92 00:05:15,389 --> 00:05:19,200 Sean Aylmer: It was up again, this time by nearly 1% to 7, 358 93 00:05:19,200 --> 00:05:23,339 Sean Aylmer: points, which is its highest finish since April 20. It's 94 00:05:23,339 --> 00:05:27,000 Sean Aylmer: seven sessions in a row of increases. Energy, real estate, 95 00:05:27,000 --> 00:05:30,270 Sean Aylmer: and financial stocks were the best performers yesterday. Woodside and 96 00:05:30,270 --> 00:05:34,170 Sean Aylmer: Santos both rose by more than 2%. Of BHP, Commonwealth 97 00:05:34,170 --> 00:05:38,759 Sean Aylmer: Bank, National Australia Bank, Westpac, Woolies, Aristocrat Leisure QBE, Brambles 98 00:05:38,759 --> 00:05:41,070 Sean Aylmer: was in there, so to zero. They're all up by 99 00:05:41,070 --> 00:05:44,670 Sean Aylmer: more than 1%. Of the top 20 stocks, only CSL, 100 00:05:44,670 --> 00:05:48,300 Sean Aylmer: the healthcare company and Gold Digger Newcrest Mining were lower. 101 00:05:48,660 --> 00:05:52,710 Sean Aylmer: Fund manager Magellan was the ASX 200s best performing stock, rallying 102 00:05:52,710 --> 00:05:56,370 Sean Aylmer: nearly 6% helped by buoyant markets. That is a company 103 00:05:56,370 --> 00:05:58,739 Sean Aylmer: that has had a very rough 18 months or so. 104 00:05:59,160 --> 00:06:01,140 Sean Aylmer: Nice for its shareholders to see a bit of a 105 00:06:01,140 --> 00:06:04,830 Sean Aylmer: bounce yesterday. Lake Resources was the worst performer, diving 20%, 106 00:06:05,010 --> 00:06:08,520 Sean Aylmer: the same as Monday after its lithium project in Argentina 107 00:06:08,520 --> 00:06:11,190 Sean Aylmer: was delayed by six years. In other corporate news, Michael 108 00:06:11,190 --> 00:06:14,909 Sean Aylmer: Star Entertainment yesterday was spared a major tax increase by 109 00:06:14,910 --> 00:06:17,759 Sean Aylmer: the New South Wales government. That was good news, but 110 00:06:17,789 --> 00:06:19,650 Sean Aylmer: the bad news was that a deal to sell some of 111 00:06:19,650 --> 00:06:23,310 Sean Aylmer: its Brisbane casino and hotel buildings fell through. Its share 112 00:06:23,310 --> 00:06:24,750 Sean Aylmer: price ended down more than 3%. 113 00:06:25,800 --> 00:06:27,659 Michael Thompson: And what happened on international markets? 114 00:06:28,260 --> 00:06:30,990 Sean Aylmer: The big news really was out of China. It reduced 115 00:06:30,990 --> 00:06:34,619 Sean Aylmer: some interest rates again yesterday, adding to the rolling out 116 00:06:34,619 --> 00:06:37,260 Sean Aylmer: of support measures for the world's second largest economy from 117 00:06:37,260 --> 00:06:41,640 Sean Aylmer: Beijing. The question among investors and traders is whether the 118 00:06:41,640 --> 00:06:45,029 Sean Aylmer: stimulus will just keep coming or whether Beijing won't do 119 00:06:45,029 --> 00:06:48,928 Sean Aylmer: much more. That makes it a little bit difficult. Certainly 120 00:06:48,928 --> 00:06:51,600 Sean Aylmer: a stronger China is good for Australia, economically at least. 121 00:06:51,928 --> 00:06:55,409 Sean Aylmer: In commodity markets, oil is down just a touch. Again, 122 00:06:55,410 --> 00:06:57,659 Sean Aylmer: not a lot of movement otherwise. The Aussie dollar has 123 00:06:57,660 --> 00:07:00,360 Sean Aylmer: fallen back again. It's below 68 US cents. 124 00:07:00,630 --> 00:07:03,779 Michael Thompson: All right. Plenty happening today, Sean. There's some big stories 125 00:07:03,779 --> 00:07:05,250 Michael Thompson: coming up. We'll be back in a moment with the 126 00:07:05,250 --> 00:07:14,520 Michael Thompson: rest of the day's business news. Sean, the Albanese government 127 00:07:14,550 --> 00:07:20,130 Michael Thompson: is seeking constitutional advice on whether the Green's continual refusal 128 00:07:20,130 --> 00:07:23,340 Michael Thompson: to allow a debate on the 10 billion social housing 129 00:07:23,340 --> 00:07:26,700 Michael Thompson: fund is grounds for a double dissolution election. 130 00:07:27,030 --> 00:07:29,129 Sean Aylmer: Oh, wouldn't that be nice to go to the polls again? 131 00:07:29,369 --> 00:07:31,679 Michael Thompson: Well, it's always great theater, isn't it? 132 00:07:31,680 --> 00:07:32,610 Sean Aylmer: It is great theater. 133 00:07:32,670 --> 00:07:35,490 Michael Thompson: And we get an awful lot to talk about, but 134 00:07:35,730 --> 00:07:38,610 Michael Thompson: goodness me, election campaigns can just be a bit of 135 00:07:38,610 --> 00:07:39,420 Michael Thompson: a punish, can't they? 136 00:07:39,420 --> 00:07:43,079 Sean Aylmer: Oh, yeah. I'm hoping not. Basically, the Greens are demanding 137 00:07:43,080 --> 00:07:46,889 Sean Aylmer: the government enact a national rent freeze before considering the 138 00:07:46,889 --> 00:07:51,330 Sean Aylmer: Housing Australia Future Fund bill, but Prime Minister Anthony Albanese 139 00:07:51,330 --> 00:07:55,110 Sean Aylmer: yesterday said, " That was not only untenable, but it would 140 00:07:55,110 --> 00:07:58,078 Sean Aylmer: result in less supply and make the problem worse." A 141 00:07:58,080 --> 00:08:01,380 Sean Aylmer: double dissolution trigger is gained when the Senate fails to 142 00:08:01,380 --> 00:08:04,710 Sean Aylmer: pass a bill twice with a minimum of three months 143 00:08:04,770 --> 00:08:07,590 Sean Aylmer: in between. On Monday, the Greens and the Coalition teamed 144 00:08:07,620 --> 00:08:10,470 Sean Aylmer: up in the Senate to defer debating and voting on 145 00:08:10,470 --> 00:08:14,190 Sean Aylmer: the bill until October 16th. That could be the first 146 00:08:14,190 --> 00:08:18,360 Sean Aylmer: half of the double dissolution trigger. Albanese told the caucus that, " 147 00:08:18,360 --> 00:08:22,260 Sean Aylmer: the Greens are bringing a juvenile student politics approach." And 148 00:08:22,260 --> 00:08:26,340 Sean Aylmer: that just the Greens? 149 00:08:26,520 --> 00:08:26,880 Michael Thompson: Really? 150 00:08:26,880 --> 00:08:26,881 Sean Aylmer: Yeah. 151 00:08:26,881 --> 00:08:30,960 Michael Thompson: Yeah. It kind of takes two sides or sometimes even three sides to 152 00:08:30,960 --> 00:08:35,099 Michael Thompson: have a student politics approach and goodness me, I don't 153 00:08:35,099 --> 00:08:37,920 Michael Thompson: think everyday punters like you and me, there is much 154 00:08:37,920 --> 00:08:40,350 Michael Thompson: kind of tolerance for student politics in Canberra. 155 00:08:40,650 --> 00:08:42,990 Sean Aylmer: There's not much tolerance for student politics when I was 156 00:08:42,990 --> 00:08:45,600 Sean Aylmer: at university as far I was concerned. Were you in 157 00:08:45,600 --> 00:08:46,708 Sean Aylmer: student politics, Michael? 158 00:08:46,800 --> 00:08:49,740 Michael Thompson: No, I wasn't because I'm sure I told you this 159 00:08:49,740 --> 00:08:52,980 Michael Thompson: story before that even in high school, you know how 160 00:08:52,980 --> 00:08:56,849 Michael Thompson: there's the SRC and I didn't like the way it 161 00:08:56,849 --> 00:09:00,750 Michael Thompson: was being run, so I started a separate movement, The 162 00:09:00,750 --> 00:09:05,910 Michael Thompson: Independent Students Union. Then all of a sudden people started, 163 00:09:05,910 --> 00:09:08,340 Michael Thompson: and I was obviously the self- appointed president. 164 00:09:08,400 --> 00:09:08,790 Sean Aylmer: Naturally. 165 00:09:09,000 --> 00:09:11,279 Michael Thompson: And all of a sudden people started talking about the 166 00:09:11,280 --> 00:09:14,728 Michael Thompson: constitution and we need to vote in leadership, and I'm 167 00:09:14,730 --> 00:09:17,639 Michael Thompson: like, I don't like where this is going, so I disbanded 168 00:09:17,639 --> 00:09:19,290 Michael Thompson: the whole thing and never mentioned it again. 169 00:09:19,920 --> 00:09:19,920 Sean Aylmer: Well done. 170 00:09:19,920 --> 00:09:22,679 Michael Thompson: Well, I could see the way this was going to 171 00:09:22,679 --> 00:09:25,080 Michael Thompson: end up and I did not like it. So anyway, 172 00:09:25,080 --> 00:09:26,790 Michael Thompson: student politics, uh- uh, not for me. 173 00:09:26,790 --> 00:09:28,559 Sean Aylmer: Well, I've got to tell you, I joined both the 174 00:09:28,559 --> 00:09:31,410 Sean Aylmer: Liberal Party in my first year and the Labor Party 175 00:09:31,410 --> 00:09:33,150 Sean Aylmer: in my first year. I went to University of New 176 00:09:33,150 --> 00:09:36,118 Sean Aylmer: South Wales because why? Free beer. 177 00:09:36,119 --> 00:09:38,220 Michael Thompson: There we go. 178 00:09:38,220 --> 00:09:39,090 Sean Aylmer: Simple as that. 179 00:09:39,840 --> 00:09:42,450 Michael Thompson: You took a very bipartisan approach to free beer. I 180 00:09:42,450 --> 00:09:42,718 Michael Thompson: love it. 181 00:09:42,720 --> 00:09:47,010 Sean Aylmer: Yeah. Anyway, the whole point of this is that the 182 00:09:47,010 --> 00:09:50,520 Sean Aylmer: Prime Minister is looking for a reason to get a 183 00:09:50,520 --> 00:09:54,780 Sean Aylmer: double dissolution election or make a double dissolution available. 184 00:09:55,679 --> 00:09:58,140 Michael Thompson: Sean, what else is going on in Canberra? It feels 185 00:09:58,140 --> 00:09:59,760 Michael Thompson: like a bit of a loaded question because there's always 186 00:09:59,760 --> 00:10:01,950 Michael Thompson: plenty going on. Any more on The Voice referendum? 187 00:10:02,340 --> 00:10:05,400 Sean Aylmer: Well, yes. Prime Minister Albanese yesterday said the referendum will 188 00:10:05,400 --> 00:10:09,630 Sean Aylmer: be held sometime between October and December. The smart money's 189 00:10:09,630 --> 00:10:11,910 Sean Aylmer: on October 14, but he seemed to push that back 190 00:10:11,910 --> 00:10:14,429 Sean Aylmer: a little bit yesterday. The government also said it will commit 191 00:10:14,429 --> 00:10:17,550 Sean Aylmer: a further 500 million dollars from the Northern Australia infrastructure 192 00:10:17,550 --> 00:10:21,480 Sean Aylmer: facility to help kickstart a critical minerals processing industry, which 193 00:10:21,480 --> 00:10:25,110 Sean Aylmer: it claims could create 134 billion dollars in new economic 194 00:10:25,110 --> 00:10:30,390 Sean Aylmer: activity and 262, 000 jobs by 2040. And Michael, there's a 195 00:10:30,450 --> 00:10:33,480 Sean Aylmer: great story in the Sydney Morning Herald and The Age 196 00:10:33,480 --> 00:10:39,120 Sean Aylmer: yesterday. Since he was elected on 21 May, 2022, Anthony 197 00:10:39,120 --> 00:10:45,480 Sean Aylmer: Albanese has held 172 press conferences and doorstops across Australia 198 00:10:45,480 --> 00:10:52,559 Sean Aylmer: and overseas, given 89 TV interviews, 128 radio interviews, much 199 00:10:52,559 --> 00:10:55,228 Sean Aylmer: more than his predecessors. The Prime Minister spreads the love 200 00:10:55,230 --> 00:10:58,500 Sean Aylmer: around having appeared on seven Sunrise and Nine's Today programs 201 00:10:58,530 --> 00:11:03,539 Sean Aylmer: 14 times each, in ABC's News Breakfast 11 times. He's 202 00:11:03,540 --> 00:11:08,730 Sean Aylmer: appeared on 10, Sky, AM and FM Radio, Print. A 203 00:11:08,820 --> 00:11:11,790 Sean Aylmer: big fan of communicating widely is this Prime Minister. 204 00:11:12,179 --> 00:11:15,570 Michael Thompson: Certainly seems to be the case. And speaking of communicating, 205 00:11:15,570 --> 00:11:18,210 Michael Thompson: Sean, Communications Minister, Michelle Rowland. 206 00:11:18,210 --> 00:11:18,540 Sean Aylmer: Nice. 207 00:11:18,719 --> 00:11:20,608 Michael Thompson: Yeah, pretty proud of that one, has asked for a 208 00:11:20,610 --> 00:11:23,968 Michael Thompson: briefing about the job cuts at the ABC that were announced last week. 209 00:11:24,510 --> 00:11:27,240 Sean Aylmer: Yes. One high profile journalist to lose his job is 210 00:11:27,240 --> 00:11:30,958 Sean Aylmer: Andrew Probyn, the political editor of the national broadcaster. He 211 00:11:30,960 --> 00:11:34,649 Sean Aylmer: was reportedly let go because he filed mostly for the 212 00:11:34,650 --> 00:11:38,759 Sean Aylmer: TV news and not across mediums or other mediums. Some 213 00:11:38,759 --> 00:11:41,910 Sean Aylmer: of his colleagues definitely disputed that. Rowland said, " The government 214 00:11:41,910 --> 00:11:44,880 Sean Aylmer: had boosted funding for the ABC and put in a five- 215 00:11:44,880 --> 00:11:48,750 Sean Aylmer: year funding plan. Ultimately, the ABC is independent," she said, 216 00:11:49,020 --> 00:11:50,670 Sean Aylmer: then added she still wants a briefing on it. 217 00:11:50,910 --> 00:11:55,828 Michael Thompson: Of course. Sean, Woodside has approved the development of the 218 00:11:56,099 --> 00:11:59,159 Michael Thompson: 7.2 billion US dollar or 10- and- a- half billion 219 00:11:59,160 --> 00:12:02,880 Michael Thompson: Aussie dollars deepwater oil project in the Gulf of Mexico, 220 00:12:02,880 --> 00:12:06,210 Michael Thompson: which it expects to begin production in 2028. 221 00:12:06,960 --> 00:12:09,299 Sean Aylmer: Yeah, I think this is an interesting story given the 222 00:12:09,300 --> 00:12:12,660 Sean Aylmer: push to renewables. So the final investment decision on the 223 00:12:12,660 --> 00:12:16,950 Sean Aylmer: development called Trion, of which Woodside's share will cost 4. 224 00:12:17,250 --> 00:12:20,578 Sean Aylmer: 8 billion US dollars, is the latest expansion plan by 225 00:12:20,580 --> 00:12:24,390 Sean Aylmer: the oil and gas company, despite mounting environmental pressure to 226 00:12:24,390 --> 00:12:28,049 Sean Aylmer: rein in its spending on new fossil fuel developments. According 227 00:12:28,050 --> 00:12:30,780 Sean Aylmer: to a report in The Australian, Woodside said, " Trion makes 228 00:12:30,900 --> 00:12:34,319 Sean Aylmer: excellent financial sense and its large oil reserves will generate 229 00:12:34,320 --> 00:12:38,220 Sean Aylmer: lucrative returns for shareholders." Chief Executive Meg O'Neill said, " The 230 00:12:38,220 --> 00:12:42,540 Sean Aylmer: project will be beneficial to shareholders and to the global energy 231 00:12:42,540 --> 00:12:47,099 Sean Aylmer: transition because it will help fund the shift to new 232 00:12:47,099 --> 00:12:51,780 Sean Aylmer: energy." O'Neill said, " Two thirds of the Trion resource is 233 00:12:51,780 --> 00:12:55,710 Sean Aylmer: expected to be produced within the first 10 years after startup." 234 00:12:56,280 --> 00:12:59,820 Michael Thompson: Now, Sean, wind farms along with solar are often the 235 00:12:59,820 --> 00:13:03,750 Michael Thompson: answer to renewable energy questions, but, this is interesting, the 236 00:13:03,750 --> 00:13:07,290 Michael Thompson: economics of building them doesn't always make sense, according to 237 00:13:07,290 --> 00:13:08,490 Michael Thompson: consultancy McKinsey. 238 00:13:09,030 --> 00:13:10,980 Sean Aylmer: Yeah, so Australia needs to double the number of wind 239 00:13:10,980 --> 00:13:14,699 Sean Aylmer: farm projects, but they are providing marginal returns, becoming more 240 00:13:14,700 --> 00:13:18,000 Sean Aylmer: expensive, and there just aren't enough transmission lines to connect 241 00:13:18,000 --> 00:13:21,990 Sean Aylmer: the farms to the consumer. McKinsey partner, Peter Lambert, speaking 242 00:13:21,990 --> 00:13:25,529 Sean Aylmer: at The Australia Energy Week summit, said, " Just 40 gigawatts 243 00:13:25,530 --> 00:13:29,160 Sean Aylmer: of utility scale renewables, including solar, will be delivered by 244 00:13:29,160 --> 00:13:34,440 Sean Aylmer: 2030 at current momentum. Much more is required." A final 245 00:13:34,440 --> 00:13:37,078 Sean Aylmer: factor holding back wind farms is a lack of power 246 00:13:37,080 --> 00:13:41,160 Sean Aylmer: purchase agreements. These are deals with big power users to 247 00:13:41,160 --> 00:13:45,030 Sean Aylmer: secure electricity supply at a reliable cost. They say, " Yes, 248 00:13:45,030 --> 00:13:49,260 Sean Aylmer: we'll take your power." That helps provide finance to develop 249 00:13:49,260 --> 00:13:51,570 Sean Aylmer: the wind farms, and that's just not happening yet. That's 250 00:13:51,570 --> 00:13:52,470 Sean Aylmer: another major problem. 251 00:13:52,920 --> 00:13:57,000 Michael Thompson: Now, and also at that same conference, Sean, was Australian 252 00:13:57,000 --> 00:14:01,530 Michael Thompson: Energy Market Operator CEO, Daniel Westerman, and he called for 253 00:14:01,530 --> 00:14:05,669 Michael Thompson: rooftops solar owners to become part of virtual power plants. 254 00:14:06,029 --> 00:14:08,880 Sean Aylmer: Yes. Now, we've spoken about this on Fear And Greed 255 00:14:08,880 --> 00:14:12,630 Sean Aylmer: before. The idea is that rooftop solar owners in a 256 00:14:12,630 --> 00:14:16,740 Sean Aylmer: geography group together and feed power into a battery, which 257 00:14:16,740 --> 00:14:19,619 Sean Aylmer: is then called on when needed by people within that 258 00:14:19,620 --> 00:14:22,920 Sean Aylmer: geography. Rooftop solar is already the largest single source of 259 00:14:22,920 --> 00:14:27,150 Sean Aylmer: capacity of renewable energy in Australia, and Westerman wants homeowners 260 00:14:27,450 --> 00:14:31,350 Sean Aylmer: to become much more active participants in the energy market 261 00:14:31,410 --> 00:14:34,590 Sean Aylmer: via these virtual power plants. They also called on Australia 262 00:14:34,590 --> 00:14:38,340 Sean Aylmer: to become more energy efficient, saying that we are currently 263 00:14:38,340 --> 00:14:41,670 Sean Aylmer: ranked 18th out of 25 in efficiency, not real good, 264 00:14:42,000 --> 00:14:45,210 Michael Thompson: So on another day, another retailer warning that sales are 265 00:14:45,210 --> 00:14:47,730 Michael Thompson: waning in the face of the cost of living crisis. 266 00:14:47,730 --> 00:14:50,820 Michael Thompson: Yesterday, it was general merchandise store Best & Less. 267 00:14:51,420 --> 00:14:54,210 Sean Aylmer: Ever since I saw those Betty Best and Lotty Less 268 00:14:54,210 --> 00:14:55,950 Sean Aylmer: ads growing up in Orange- 269 00:14:56,340 --> 00:14:56,581 Michael Thompson: Goodness me. 270 00:14:56,581 --> 00:14:58,590 Sean Aylmer: ... in the seventies or eighties. 271 00:14:58,859 --> 00:15:00,389 Michael Thompson: Just how old are you, Sean? 272 00:15:00,510 --> 00:15:02,580 Sean Aylmer: Well, old enough to know about Betty Best and Lotty 273 00:15:02,580 --> 00:15:07,290 Sean Aylmer: Less. I've always loved this store and I don't know 274 00:15:07,290 --> 00:15:11,190 Sean Aylmer: why. Basically, sales have slumped 13% and its half year profit 275 00:15:11,190 --> 00:15:14,370 Sean Aylmer: is expected to be as much as two- thirds lower 276 00:15:14,730 --> 00:15:17,580 Sean Aylmer: due to heavy discounting. The company is currently under takeover 277 00:15:17,580 --> 00:15:20,460 Sean Aylmer: offer from billionaire entrepreneur, Brett Blundy, that pretty much saved 278 00:15:20,460 --> 00:15:25,440 Sean Aylmer: any major selloff in the thinly traded company yesterday. So 279 00:15:25,470 --> 00:15:29,370 Sean Aylmer: we've had WesFarmers, Treasury Wine Estates, Domino's, Baby Bunting, Michael 280 00:15:29,370 --> 00:15:33,900 Sean Aylmer: Hill, Maggie Beer, Dusk, Best & Less, all talking about a 281 00:15:33,900 --> 00:15:38,070 Sean Aylmer: consumer slowdown. It's really happening, no doubt. 282 00:15:38,310 --> 00:15:40,710 Michael Thompson: It does seem like that, and you've been calling it 283 00:15:40,710 --> 00:15:42,630 Michael Thompson: now for a little while and you keep on putting 284 00:15:42,630 --> 00:15:44,880 Michael Thompson: forward evidence and at some point, Sean, we're going to 285 00:15:44,880 --> 00:15:46,889 Michael Thompson: have to say, " Aylmer was right." 286 00:15:48,090 --> 00:15:51,059 Sean Aylmer: Well, I've got to say every economist out there, Reserve 287 00:15:51,059 --> 00:15:53,369 Sean Aylmer: Bank, they've all been calling this too, so I'd like 288 00:15:53,369 --> 00:15:54,060 Sean Aylmer: to take credit though. 289 00:15:54,090 --> 00:15:55,560 Michael Thompson: Just take it. Just accept it. 290 00:15:55,920 --> 00:15:58,800 Sean Aylmer: Yeah, yeah, yeah. No, you're right, Michael. I got this first. 291 00:15:59,250 --> 00:16:01,230 Michael Thompson: Excellent, and don't no- one go back and check the 292 00:16:01,230 --> 00:16:04,139 Michael Thompson: tapes. Last one, Sean, before we get to international news, 293 00:16:04,139 --> 00:16:07,200 Michael Thompson: renter confidence has fallen to record lows on the back 294 00:16:07,200 --> 00:16:10,259 Michael Thompson: of rising prices according to the weekly ANZ and Roy 295 00:16:10,260 --> 00:16:11,159 Michael Thompson: Morgan survey. 296 00:16:11,699 --> 00:16:14,940 Sean Aylmer: Yeah, so confidence among that part of the housing sector 297 00:16:14,940 --> 00:16:17,700 Sean Aylmer: fell back to its recent all- time low, which it 298 00:16:17,700 --> 00:16:21,059 Sean Aylmer: first reached in mid- May. According to AIP, tenants have 299 00:16:21,059 --> 00:16:24,479 Sean Aylmer: faced surging rents as a shortfall in listings collides with 300 00:16:24,480 --> 00:16:28,290 Sean Aylmer: a rebound in overseas migration and international students post- Covid. 301 00:16:28,559 --> 00:16:32,280 Sean Aylmer: Meanwhile, confidence among mortgage holders recovered a little over the 302 00:16:32,280 --> 00:16:35,790 Sean Aylmer: past week, but interestingly for those who have paid off 303 00:16:35,790 --> 00:16:39,660 Sean Aylmer: their home loans, sentiment sunk to its lowest level since 304 00:16:39,660 --> 00:16:41,399 Sean Aylmer: early April, 2020. 305 00:16:41,790 --> 00:16:45,630 Michael Thompson: Okay. Turning to international news now and legendary investor, Warren 306 00:16:45,630 --> 00:16:49,050 Michael Thompson: Buffett, is upping his stakes in five of Japan's trading 307 00:16:49,050 --> 00:16:52,080 Michael Thompson: houses, which he first bought into earlier this year in 308 00:16:52,080 --> 00:16:54,480 Michael Thompson: a sign of confidence about the country's economy. 309 00:16:55,020 --> 00:16:57,960 Sean Aylmer: Buffett's Berkshire Hathaway now owns an average of eight and 310 00:16:57,960 --> 00:17:00,059 Sean Aylmer: a half percent in each of the conglomerates, which do 311 00:17:00,059 --> 00:17:03,659 Sean Aylmer: everything from gas trading to salmon farming. According to Bloomberg, 312 00:17:03,660 --> 00:17:06,388 Sean Aylmer: the groups announced a surge in profits last fiscal year 313 00:17:06,388 --> 00:17:08,879 Sean Aylmer: on the back of higher commodity prices and the weaker 314 00:17:08,880 --> 00:17:12,478 Sean Aylmer: Yen. Buffett's endorsement combined with signs of stable inflation and 315 00:17:12,480 --> 00:17:16,500 Sean Aylmer: better shareholder returns in Japan have helped that country's stock 316 00:17:16,500 --> 00:17:20,489 Sean Aylmer: market hit a 33- year high. Berkshire also said it 317 00:17:20,490 --> 00:17:24,209 Sean Aylmer: plans to increase investments to up to 9.9% in each 318 00:17:24,270 --> 00:17:28,020 Sean Aylmer: of the five Japanese firms. Certainly a sign of confidence 319 00:17:28,200 --> 00:17:30,540 Sean Aylmer: about what's going on in the world's third- largest economy, 320 00:17:31,170 --> 00:17:35,910 Michael Thompson: The US and China have made quote, " Progress towards stabilizing 321 00:17:35,910 --> 00:17:40,738 Michael Thompson: bilateral relations," Chinese President Xi Jinping declared after holding a long- 322 00:17:40,740 --> 00:17:44,280 Michael Thompson: delayed meeting with US Secretary of State, Anthony Blinken. This 323 00:17:44,280 --> 00:17:45,060 Michael Thompson: is big news. 324 00:17:45,210 --> 00:17:48,300 Sean Aylmer: It is. Xi's comments represent the strongest signal yet that 325 00:17:48,300 --> 00:17:51,540 Sean Aylmer: Beijing is willing to consider a truce in its increasingly 326 00:17:51,540 --> 00:17:55,918 Sean Aylmer: acrimonious relationship with Washington, according to the Financial Times. Speaking 327 00:17:55,920 --> 00:17:58,198 Sean Aylmer: in the Great Hall of the people with Blinken, the 328 00:17:58,199 --> 00:18:00,898 Sean Aylmer: first US Secretary of State to visit the Chinese capital 329 00:18:00,930 --> 00:18:04,680 Sean Aylmer: since 2018. Xi said, " Whether China and the US could 330 00:18:04,680 --> 00:18:07,859 Sean Aylmer: get along had a bearing on the future and destiny 331 00:18:07,859 --> 00:18:12,059 Sean Aylmer: of mankind. The two countries should properly handle Sino- US 332 00:18:12,059 --> 00:18:15,780 Sean Aylmer: relations with an attitude of being responsible to history, the 333 00:18:15,780 --> 00:18:19,650 Sean Aylmer: people, and the world," Xi said. He added, " The two 334 00:18:19,650 --> 00:18:22,859 Sean Aylmer: sides had made progress and reached agreement on some specific 335 00:18:22,859 --> 00:18:27,059 Sean Aylmer: issues in extensive talks between Chinese officials and Blinken during 336 00:18:27,059 --> 00:18:30,209 Sean Aylmer: the two- day visit." Speaking during a visit to California 337 00:18:30,270 --> 00:18:33,149 Sean Aylmer: after that meeting, US President Joe Biden said, " Blinken had 338 00:18:33,150 --> 00:18:35,669 Sean Aylmer: done a hell of a job in China." 339 00:18:36,059 --> 00:18:38,070 Michael Thompson: All right. Up next is the Fear and Greed Daily 340 00:18:38,070 --> 00:18:42,720 Michael Thompson: interview. You're speaking with Cara Peek, a lawyer, an entrepreneur, co- 341 00:18:42,720 --> 00:18:46,260 Michael Thompson: founder of Cultural IQ. This is a really important and 342 00:18:46,260 --> 00:18:47,250 Michael Thompson: interesting conversation. 343 00:18:47,609 --> 00:18:51,870 Sean Aylmer: Sure is. Mostly about what businesses can do to improve 344 00:18:52,020 --> 00:18:56,820 Sean Aylmer: their cultural IQ with First Nations people, but across all 345 00:18:56,820 --> 00:18:58,438 Sean Aylmer: peoples. Well worth a listen. 346 00:18:58,800 --> 00:19:00,750 Michael Thompson: Yes. Coming up next in the Fear and Greed playlist 347 00:19:00,750 --> 00:19:06,059 Michael Thompson: on your podcast platform or at fearandgreed.com.au and Sean, today 348 00:19:06,059 --> 00:19:08,369 Michael Thompson: is, of course, Wednesday and you know what that means? 349 00:19:09,179 --> 00:19:11,999 Sean Aylmer: Yes. How Can They Afford That? What's it about today, Michael? 350 00:19:12,029 --> 00:19:16,379 Michael Thompson: Well, Sean, today it is all about franking credits. 351 00:19:16,710 --> 00:19:19,650 Sean Aylmer: Riveting stuff, Michael, riveting stuff. 352 00:19:19,710 --> 00:19:22,380 Michael Thompson: If you've ever wanted to hear somebody out of their 353 00:19:22,380 --> 00:19:28,529 Michael Thompson: depth, then listen to me quizzing Canna on franking credits. 354 00:19:28,529 --> 00:19:30,898 Michael Thompson: She's all over it. Me, I'm like, " Let's start with 355 00:19:30,900 --> 00:19:32,850 Michael Thompson: the basics, Canna," and so it's- 356 00:19:32,850 --> 00:19:33,870 Sean Aylmer: Why are they called franking? 357 00:19:34,440 --> 00:19:37,440 Michael Thompson: It's a... Look, Sean, you better just listen to the episode. 358 00:19:37,440 --> 00:19:39,629 Sean Aylmer: I will definitely listen to the episode. I just wanted 359 00:19:39,630 --> 00:19:43,020 Sean Aylmer: a little shout out to one of our social media 360 00:19:43,020 --> 00:19:45,928 Sean Aylmer: hounds. Came in yesterday. I'm just going to call him 361 00:19:45,929 --> 00:19:50,100 Sean Aylmer: John Kay. You clearly haven't mentioned him yet. Well, he said, " 362 00:19:50,100 --> 00:19:51,988 Sean Aylmer: Yesterday we discussed a lot about Harry Potter and I've 363 00:19:51,990 --> 00:19:54,750 Sean Aylmer: never really seen Harry Potter. I've read the first book. 364 00:19:54,750 --> 00:19:56,609 Sean Aylmer: I'm not really rushing to read the rest, et cetera." 365 00:19:57,388 --> 00:20:00,359 Sean Aylmer: John Kay, I'm with you on Harry Potter, who even 366 00:20:00,359 --> 00:20:03,960 Sean Aylmer: reads, watches that drivel. Love it, John Kay. Well done. 367 00:20:04,289 --> 00:20:08,700 Michael Thompson: Well, John, look, you're not getting a nomination for MEA, 368 00:20:08,880 --> 00:20:10,440 Michael Thompson: for Most Enthusiastic Advocate. 369 00:20:10,440 --> 00:20:12,780 Sean Aylmer: He's getting the best bloke award for the day. 370 00:20:13,230 --> 00:20:16,590 Michael Thompson: No, he's not. You know what? He's almost having his 371 00:20:16,800 --> 00:20:20,399 Michael Thompson: license to listen revoked, but you know what, John Kay, 372 00:20:21,240 --> 00:20:22,080 Michael Thompson: you're on probation. 373 00:20:22,650 --> 00:20:23,698 Sean Aylmer: Ooh, there you go. 374 00:20:23,699 --> 00:20:26,580 Michael Thompson: That's tough. We run a tight ship here, Sean. Anyway, 375 00:20:26,580 --> 00:20:27,388 Michael Thompson: thank you very much, Sean. 376 00:20:27,720 --> 00:20:28,410 Sean Aylmer: Thanks, Michael. 377 00:20:28,530 --> 00:20:31,800 Michael Thompson: It's Wednesday, the 21st of June, 2023. Make sure you're 378 00:20:31,800 --> 00:20:35,158 Michael Thompson: following the podcast. Join us online on LinkedIn, Instagram, Twitter, and 379 00:20:35,160 --> 00:20:37,559 Michael Thompson: Facebook, and stay up- to- date on all the business 380 00:20:37,559 --> 00:20:41,309 Michael Thompson: news with Alexa and your Amazon Echo Smart speaker. Simply say, " 381 00:20:41,309 --> 00:20:43,678 Michael Thompson: Alexa, play the Fear and Greed podcast," to catch the 382 00:20:43,680 --> 00:20:46,888 Michael Thompson: latest episode and grab yours now at amazon. com. au. 383 00:20:47,250 --> 00:20:49,560 Michael Thompson: I'm Michael Thompson and that was Fear and Greed. Have 384 00:20:49,560 --> 00:20:49,980 Michael Thompson: a great day.