1
00:00:03,800 --> 00:00:06,760
Speaker 1: It's Friday, the eighth of November twenty twenty four. Welcome

2
00:00:06,800 --> 00:00:08,840
Speaker 1: to the Fast five by Fear and Greed, where we

3
00:00:08,920 --> 00:00:11,000
Speaker 1: give you the top five business stories you need to

4
00:00:11,039 --> 00:00:14,360
Speaker 1: know in just five minutes. I'm Adam Lang and good morning.

5
00:00:14,440 --> 00:00:15,160
Speaker 1: Sean Aylmer.

6
00:00:15,600 --> 00:00:16,880
Speaker 2: Good morning, Adam Lang.

7
00:00:17,120 --> 00:00:19,360
Speaker 1: Sewan story number one. The head of the Reserve Bank

8
00:00:19,400 --> 00:00:21,840
Speaker 1: and the boss of National Australia Bank have warned of

9
00:00:21,960 --> 00:00:25,159
Speaker 1: trade wars hurting Australia's growth as a result of the

10
00:00:25,160 --> 00:00:27,880
Speaker 1: election of Donald Trump as the next US president.

11
00:00:28,120 --> 00:00:31,760
Speaker 2: National Australia Bank Chief executive Officer Andrew Irvine talked about

12
00:00:31,800 --> 00:00:35,040
Speaker 2: adverse effects on the local economy from tariff's emanating from

13
00:00:35,040 --> 00:00:38,479
Speaker 2: a trade war. Donald Trump, of course, has suggested tariff's

14
00:00:38,479 --> 00:00:42,800
Speaker 2: of sixty percent on Chinese export Chinese inputs into the

15
00:00:42,960 --> 00:00:46,880
Speaker 2: US and up to twenty percent on other imports into

16
00:00:46,880 --> 00:00:49,400
Speaker 2: the US. Now, Australia exports about twenty two billion dollars

17
00:00:49,440 --> 00:00:52,640
Speaker 2: worth of stuff to the US beef, gold, pharmaceutical products.

18
00:00:52,680 --> 00:00:55,000
Speaker 2: We've had a free trade agreement for almost twenty years.

19
00:00:55,120 --> 00:00:58,040
Speaker 2: I'm not sure how all that fits into it. Mister

20
00:00:58,280 --> 00:01:00,560
Speaker 2: Van also warned of higher for longer in inflation and

21
00:01:00,720 --> 00:01:03,600
Speaker 2: US interest rates bond markets that are already pricing that in.

22
00:01:04,040 --> 00:01:06,520
Speaker 2: There's also an expectation that there will be tax cuts,

23
00:01:06,520 --> 00:01:10,080
Speaker 2: corporate tax cuts and a reduction in red tape good

24
00:01:10,120 --> 00:01:13,600
Speaker 2: farnings good for economic growth in the short term for

25
00:01:13,800 --> 00:01:15,840
Speaker 2: US companies. We'll have to see how that plays out.

26
00:01:15,959 --> 00:01:18,840
Speaker 2: The Reserve Bank Governor Michelle Bullock said her initial feeling

27
00:01:19,319 --> 00:01:21,360
Speaker 2: was that at ten percent tariff and all training partners

28
00:01:21,360 --> 00:01:24,920
Speaker 2: wouldn't have much of an impact. If there are higher

29
00:01:24,959 --> 00:01:27,920
Speaker 2: tariffs then it's more likely to hit the local economy.

30
00:01:28,000 --> 00:01:29,840
Speaker 2: She didn't really have a view on what it means

31
00:01:29,840 --> 00:01:32,959
Speaker 2: for interest rates. The Reserve Bank Assistant Governor Chris kant

32
00:01:33,080 --> 00:01:35,640
Speaker 2: He said large tariffs on China may have an adverse

33
00:01:35,680 --> 00:01:38,760
Speaker 2: effect on Australia. The general agreement, I would say, and

34
00:01:39,120 --> 00:01:41,280
Speaker 2: no one fully knows what a Trump government means for

35
00:01:41,440 --> 00:01:42,120
Speaker 2: this country.

36
00:01:42,560 --> 00:01:45,440
Speaker 1: Story number two Sean Prime Minister Anthony Alberzi was on

37
00:01:45,480 --> 00:01:49,440
Speaker 1: the phone quickly calling President elect Trump to congratulate him.

38
00:01:50,080 --> 00:01:53,280
Speaker 2: Yes, the US is Australia's closest military ally, we also

39
00:01:53,320 --> 00:01:55,280
Speaker 2: have the Orchest deal with terms of billions of dollars.

40
00:01:55,720 --> 00:01:58,760
Speaker 2: Why wouldn't he ring him? Mister Alberanzi said the two

41
00:01:58,800 --> 00:02:01,440
Speaker 2: spoke on the imp importance of the alliance and the

42
00:02:01,520 --> 00:02:06,960
Speaker 2: relationship's strength in security orchest trade and investment. When asked

43
00:02:06,960 --> 00:02:10,040
Speaker 2: about comments he made about Donald Trump in twenty seventeen

44
00:02:10,120 --> 00:02:13,040
Speaker 2: where he was quite disparaging of him, he refused to apologize.

45
00:02:13,080 --> 00:02:15,480
Speaker 2: He also said Australia's ambassador to the US, Kevin Rudd,

46
00:02:15,720 --> 00:02:16,800
Speaker 2: had his full support.

47
00:02:16,840 --> 00:02:17,040
Speaker 1: Now.

48
00:02:17,200 --> 00:02:21,240
Speaker 2: Rudd has previously called Trump the most destructive president in history.

49
00:02:22,120 --> 00:02:25,440
Speaker 2: Few bridges to men, fences to fix, bridges to cross,

50
00:02:25,480 --> 00:02:28,240
Speaker 2: whatever the euphemisms, that's what we've got going on.

51
00:02:29,160 --> 00:02:31,959
Speaker 1: Moving on to story number three, Shore National Australia Bank

52
00:02:32,000 --> 00:02:34,720
Speaker 1: has reported an eight percent drop in annual cash profit

53
00:02:35,000 --> 00:02:38,239
Speaker 1: to seven point one billion dollars and said Australian borrowers

54
00:02:38,360 --> 00:02:41,160
Speaker 1: have entered the toughest part of the economic cycle.

55
00:02:41,760 --> 00:02:44,440
Speaker 2: The result was about as expected, though the dividend was

56
00:02:44,480 --> 00:02:47,040
Speaker 2: a bit higher. The share price of National Australia Bank

57
00:02:47,160 --> 00:02:51,520
Speaker 2: fell sharply before it recovered and finished flat. I suppose

58
00:02:51,880 --> 00:02:54,080
Speaker 2: the number of people were looking at was loan arrears.

59
00:02:54,120 --> 00:02:57,480
Speaker 2: That's where repayments aren't keeping up with the schedule. They

60
00:02:57,560 --> 00:03:01,079
Speaker 2: jumped to their highest points since twenty twenty. Chief executive

61
00:03:01,120 --> 00:03:04,000
Speaker 2: officer Andrew Irvine said there were moll bad loans as

62
00:03:04,040 --> 00:03:07,600
Speaker 2: businesses and consumers grapple with higher interest rates. National Australia

63
00:03:07,600 --> 00:03:10,639
Speaker 2: Bank stepped back from mortgage wars. Over the last twelve months.

64
00:03:11,720 --> 00:03:13,920
Speaker 2: The competition got really hot and NAV said, look, we're

65
00:03:13,960 --> 00:03:15,880
Speaker 2: going to preserve our profit margins, so we're not going

66
00:03:15,919 --> 00:03:18,480
Speaker 2: to partake in it. As a result, the consumer bank suffered,

67
00:03:18,919 --> 00:03:21,800
Speaker 2: he said. Miss Irvine said the competition in the mortgage

68
00:03:21,880 --> 00:03:25,800
Speaker 2: lending market isn't as fierce as previous, so it's back

69
00:03:25,880 --> 00:03:29,120
Speaker 2: in competing. Bat NAB's nim, nabs nim.

70
00:03:29,120 --> 00:03:29,359
Speaker 1: There you go.

71
00:03:29,520 --> 00:03:32,120
Speaker 2: National Australia Bank's net interest margin, the difference between what

72
00:03:32,160 --> 00:03:34,160
Speaker 2: it pays on deposits and receives on loans was down

73
00:03:34,280 --> 00:03:37,720
Speaker 2: three basis points. As I said, it's share price was flat.

74
00:03:37,880 --> 00:03:40,840
Speaker 1: Sean Stein number four. The Competition Regulator has given the

75
00:03:40,880 --> 00:03:44,280
Speaker 1: go ahead to the merger of Chemist Warehouse and Sigma Pharmaceutical.

76
00:03:44,640 --> 00:03:48,000
Speaker 2: That is one large steps towards creating a twenty nine

77
00:03:48,000 --> 00:03:50,320
Speaker 2: billion dollar share market giant that would make it bigger

78
00:03:50,360 --> 00:03:53,920
Speaker 2: than Coal's, for example, bigger than Santos. It means Sigma

79
00:03:54,200 --> 00:03:57,920
Speaker 2: the pharmacy wholesaler and retailer. We'll merge with the number

80
00:03:58,000 --> 00:04:01,400
Speaker 2: one retailer, Chemist Warehouse. Sigma has had to make some

81
00:04:01,440 --> 00:04:05,320
Speaker 2: concessions exit path through franchises and the network restrictions on

82
00:04:05,720 --> 00:04:08,360
Speaker 2: use of data that its collects, but looks like this

83
00:04:08,440 --> 00:04:11,760
Speaker 2: deal is going to get the green light. Sigma share

84
00:04:11,760 --> 00:04:13,600
Speaker 2: price was up twenty four percent yesterday.

85
00:04:13,800 --> 00:04:17,360
Speaker 1: Sean's doing. Number five. Prime Minister Anthony Alberinezi will consult

86
00:04:17,400 --> 00:04:20,599
Speaker 1: with the National Cabinet today about banning social media for

87
00:04:20,720 --> 00:04:22,479
Speaker 1: children under the age of sixteen.

88
00:04:22,800 --> 00:04:24,800
Speaker 2: Please they don't have any of those anymore, because that

89
00:04:24,920 --> 00:04:26,599
Speaker 2: is going to be very hard to do. The Safety

90
00:04:26,640 --> 00:04:29,520
Speaker 2: Commissioner will oversee the band. The Prime Minister wants social

91
00:04:29,560 --> 00:04:32,880
Speaker 2: media companies to enforce it. He agrees the policy won't

92
00:04:32,880 --> 00:04:36,400
Speaker 2: get a one hundred percent outcome and he doesn't really

93
00:04:36,400 --> 00:04:39,640
Speaker 2: want to allow exemptions based on parental consent. Under sixteen

94
00:04:39,680 --> 00:04:41,839
Speaker 2: year olds won't be able to hold an account. Basically,

95
00:04:41,880 --> 00:04:46,760
Speaker 2: we're talking Instagram, Facebook, Snapchat, etcetera, etcetera. Social media companies,

96
00:04:46,839 --> 00:04:50,560
Speaker 2: parents and children could face penalties if they don't comply.

97
00:04:51,040 --> 00:04:53,520
Speaker 2: I think it's a good idea, but my word, no idea.

98
00:04:53,560 --> 00:04:54,560
Speaker 2: How they're going to enforce it.

99
00:04:55,000 --> 00:04:57,640
Speaker 1: That's it. The top five business stories in five minutes.

100
00:04:57,800 --> 00:04:59,880
Speaker 2: Thank you Sean, Thank you Adams.

101
00:05:00,000 --> 00:05:02,600
Speaker 1: Friday, the eighth of November twenty twenty four. Remember to

102
00:05:02,680 --> 00:05:05,480
Speaker 1: hit follow on the podcast and if five minutes isn't enough,

103
00:05:05,720 --> 00:05:08,240
Speaker 1: then find out longer podcast called Fear and Greed on

104
00:05:08,279 --> 00:05:11,440
Speaker 1: your favorite podcast platform. I'm Adam Lang and that was

105
00:05:11,440 --> 00:05:14,000
Speaker 1: the Fast five by Fear and Greed. Have a great date.