1 00:00:03,880 --> 00:00:07,080 Speaker 1: It's Friday, the fourth of October twenty twenty four. Welcome 2 00:00:07,120 --> 00:00:09,479 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,520 --> 00:00:11,320 Speaker 1: where we give you the top five business stories you 4 00:00:11,400 --> 00:00:13,800 Speaker 1: need to know in just five minutes. I'm Michael Thompson. 5 00:00:14,000 --> 00:00:15,240 Speaker 1: Good morning, Sean Aylmer. 6 00:00:15,560 --> 00:00:17,160 Speaker 2: Good morning Michael, Sean. 7 00:00:17,239 --> 00:00:19,720 Speaker 1: Five big stories to get through in just five minutes, 8 00:00:19,720 --> 00:00:22,640 Speaker 1: so we better get going. Story number one. The International 9 00:00:22,680 --> 00:00:26,840 Speaker 1: Monetary Fund has warned that government spending in Australia could 10 00:00:26,920 --> 00:00:30,120 Speaker 1: keep interest rates higher than they would otherwise be and 11 00:00:30,160 --> 00:00:32,720 Speaker 1: has told the federal government to target future cost of 12 00:00:32,760 --> 00:00:33,400 Speaker 1: living relief. 13 00:00:33,840 --> 00:00:36,239 Speaker 2: The IMF and it's annual health check Off the Australian 14 00:00:36,280 --> 00:00:38,919 Speaker 2: Economy called for an overhaul of the tax system, suggesting 15 00:00:39,040 --> 00:00:42,360 Speaker 2: the government phase out superannuation tax concessions and the capital 16 00:00:42,400 --> 00:00:45,600 Speaker 2: gains tax discount to fund a reduction in personal income 17 00:00:45,880 --> 00:00:48,279 Speaker 2: and company tax rates. The IMF said there was a 18 00:00:48,320 --> 00:00:52,240 Speaker 2: case to reevaluate tax concessions paid to property investors hot 19 00:00:52,280 --> 00:00:54,760 Speaker 2: topic here as part of a broader package designed to 20 00:00:54,760 --> 00:00:58,360 Speaker 2: address Australia's chronic housing shortage. It said two federal budget 21 00:00:58,400 --> 00:01:01,160 Speaker 2: surpluses in a row was good. However, the budget this 22 00:01:01,280 --> 00:01:06,120 Speaker 2: financial year could add to demand and inflation repressures. The 23 00:01:06,160 --> 00:01:08,800 Speaker 2: comment about targeting cost of living and relief is significant. 24 00:01:08,840 --> 00:01:11,160 Speaker 2: Plenty of the government's policies, like the energy rebates, go 25 00:01:11,240 --> 00:01:14,000 Speaker 2: there everyone, not just the people who most need help. 26 00:01:14,360 --> 00:01:16,760 Speaker 2: Given the likelihood of more household subsidies ahead of the 27 00:01:16,760 --> 00:01:19,040 Speaker 2: next election, it will be interesting to see if Treasure 28 00:01:19,120 --> 00:01:21,800 Speaker 2: Jim Chalmers is listening to the IMF. The IMF endorsed 29 00:01:21,840 --> 00:01:25,319 Speaker 2: the RBA's restrictive policy stance, but warned that interest rates 30 00:01:25,440 --> 00:01:28,319 Speaker 2: would need to rise if progress and lowering inflation stopped, 31 00:01:28,520 --> 00:01:31,400 Speaker 2: potentially due to stronger than expected government spending or global 32 00:01:31,400 --> 00:01:34,640 Speaker 2: supply chain disruptions. Basically, it endorsed what the Reserve Bank 33 00:01:34,760 --> 00:01:35,360 Speaker 2: is doing. 34 00:01:35,440 --> 00:01:36,920 Speaker 1: As sure is any of that's going to happen? 35 00:01:37,080 --> 00:01:39,440 Speaker 2: Really well, most of it were o't a complete overhaul 36 00:01:39,600 --> 00:01:42,120 Speaker 2: tax system Buckley's chance of that one. Even if it 37 00:01:42,160 --> 00:01:44,440 Speaker 2: is a good idea. The IMF can sit outside Australia 38 00:01:44,480 --> 00:01:46,360 Speaker 2: look in without having to deal with the politics of 39 00:01:46,400 --> 00:01:49,480 Speaker 2: its recommendations. The gist of its tax argument, which is 40 00:01:49,520 --> 00:01:51,800 Speaker 2: a good one, is that this system is too reliant 41 00:01:51,840 --> 00:01:55,559 Speaker 2: on direct taxation of individuals and companies. Those taxes should 42 00:01:55,560 --> 00:01:58,720 Speaker 2: be wound back as should tax relief in areas like 43 00:01:58,840 --> 00:02:00,600 Speaker 2: negative gearing. Michael alright. 44 00:02:00,640 --> 00:02:03,280 Speaker 1: Moving on to story number two, Sean comes from Wall 45 00:02:03,320 --> 00:02:07,480 Speaker 1: Street where open ai, the startup behind chat gpt, is 46 00:02:07,520 --> 00:02:11,600 Speaker 1: now worth one hundred and fifty seven billion US. 47 00:02:11,440 --> 00:02:15,160 Speaker 2: Dollars, not bad earlier this year is worth eighty six 48 00:02:15,320 --> 00:02:17,959 Speaker 2: billion dollars. Over the last few days, it's raised six 49 00:02:17,960 --> 00:02:20,240 Speaker 2: point six billion dollars, meaning it has to revalue. It's 50 00:02:20,280 --> 00:02:23,320 Speaker 2: a private company, has to revalue now one fifty seven 51 00:02:23,400 --> 00:02:26,840 Speaker 2: billion US dollars. That puts it on par with companies 52 00:02:26,880 --> 00:02:31,000 Speaker 2: like Goldman, Sachs, Uber and AT and T. The funding 53 00:02:31,040 --> 00:02:33,440 Speaker 2: round is one of the largest ever for a private company, 54 00:02:33,440 --> 00:02:37,000 Speaker 2: apart from ten billion dollars which open Ai raised last 55 00:02:37,080 --> 00:02:40,000 Speaker 2: year from Microsoft. Bunch of new people are jumping into 56 00:02:40,000 --> 00:02:43,560 Speaker 2: the company that includes Tokyo based conglomerate SoftBank. It's putting 57 00:02:43,560 --> 00:02:46,840 Speaker 2: in about half a billion US dollars. Nvidia, the AI 58 00:02:46,919 --> 00:02:50,200 Speaker 2: chip maker, it's investing about one hundred million US dollars. 59 00:02:50,600 --> 00:02:53,880 Speaker 1: Story number three one from here at Home Sean. The 60 00:02:54,000 --> 00:02:58,280 Speaker 1: development of a sustainable, cost effective hydrogen industry took a 61 00:02:58,320 --> 00:03:02,760 Speaker 1: major step backwards yes after Origin Energy said it'll exit 62 00:03:02,919 --> 00:03:04,840 Speaker 1: its existing hydro ventures. 63 00:03:04,919 --> 00:03:07,960 Speaker 2: Too expensive according to Origin, and the electricity and Gas 64 00:03:07,960 --> 00:03:09,960 Speaker 2: groups said it won't go ahead with its Hunter Valley 65 00:03:10,040 --> 00:03:12,400 Speaker 2: hydrogen hub, which was in line to get funding from 66 00:03:12,400 --> 00:03:15,520 Speaker 2: the federal government. Chief executive Frank Collabria told the fin 67 00:03:15,600 --> 00:03:18,480 Speaker 2: Review that it was clear that the hydrogen market was 68 00:03:18,520 --> 00:03:21,959 Speaker 2: developing more slowly than anticipated and the remains risks in 69 00:03:22,080 --> 00:03:25,120 Speaker 2: terms of costs and technology advancements. In July four toes 70 00:03:25,160 --> 00:03:27,919 Speaker 2: Q drop plants for green hydrogen production. Now, the alban 71 00:03:27,960 --> 00:03:31,400 Speaker 2: Easy government has committed a two dollars a kilogram subsidy 72 00:03:31,440 --> 00:03:35,440 Speaker 2: for hydrogen producers under its Hydrogen head Start program. Lots 73 00:03:35,440 --> 00:03:38,680 Speaker 2: of hs there hydrogen Headstart program, along with about six 74 00:03:38,680 --> 00:03:41,400 Speaker 2: point seven billion in production tax credits. There is now 75 00:03:41,440 --> 00:03:43,640 Speaker 2: a shrinking list of operators who might be able to 76 00:03:43,680 --> 00:03:44,920 Speaker 2: benefit from those handouts. 77 00:03:45,240 --> 00:03:49,560 Speaker 1: Story number four Israel sean bomb central Beirut yesterday, killing 78 00:03:49,600 --> 00:03:52,920 Speaker 1: at least six people, after its forces suffered their deadliest 79 00:03:53,000 --> 00:03:55,880 Speaker 1: day on the Lebanese front in a year of clashes 80 00:03:55,960 --> 00:03:58,000 Speaker 1: against Iran backed Hesbela. 81 00:03:58,240 --> 00:04:01,360 Speaker 2: Israel said it conducted a precise airstrike on be Route. 82 00:04:01,360 --> 00:04:04,440 Speaker 2: According to Reuter's a security source that Israel targeted a 83 00:04:04,440 --> 00:04:08,200 Speaker 2: building in Central Bay routes backera neighborhood close to Parliament, 84 00:04:08,240 --> 00:04:11,480 Speaker 2: the nearest Israeli strikes have come to Lebanon's capital. At 85 00:04:11,520 --> 00:04:14,119 Speaker 2: least six people were killed and seven wounded. Lebanese health 86 00:04:14,120 --> 00:04:17,920 Speaker 2: officials said three missiles also hit a southern suburb where 87 00:04:18,200 --> 00:04:21,760 Speaker 2: HESBLA leader Hessen Nazraela was killed last week. Meanwhile, the 88 00:04:21,839 --> 00:04:24,320 Speaker 2: US and its western allies are trying to limit Israel's 89 00:04:24,320 --> 00:04:28,039 Speaker 2: response to Iran's ballistic missile attacks three days ago. Washington 90 00:04:28,080 --> 00:04:30,480 Speaker 2: has made it clear it supports Israel's right to respond 91 00:04:30,600 --> 00:04:33,760 Speaker 2: militarily to the attack and is holding frequent calls with 92 00:04:33,920 --> 00:04:38,800 Speaker 2: Israeli officials, but those US officials concede their influence on 93 00:04:38,920 --> 00:04:39,919 Speaker 2: Israel is limited. 94 00:04:40,640 --> 00:04:43,720 Speaker 1: Last one story number five. Amazon is set to roll 95 00:04:43,720 --> 00:04:46,960 Speaker 1: out a greater number of advertisements across its Blockbuster TV 96 00:04:47,040 --> 00:04:50,080 Speaker 1: shows and movies on Prime Video next year as it 97 00:04:50,120 --> 00:04:53,359 Speaker 1: pushes further into ad funded streaming services. 98 00:04:53,640 --> 00:04:55,720 Speaker 2: The company said it hadn't seen a sharp drop and 99 00:04:55,760 --> 00:04:59,359 Speaker 2: subscriber since it introduced advertising to its Prime Video platform 100 00:04:59,400 --> 00:05:02,200 Speaker 2: eight months ago. Are laying fears among top execs of 101 00:05:02,240 --> 00:05:05,960 Speaker 2: a customer backlash. Amazon's joined a highly competitive market for 102 00:05:06,000 --> 00:05:10,320 Speaker 2: ad supported streaming services. Think Netflix, Max, Paramount Plus, Disney plus. 103 00:05:10,960 --> 00:05:13,320 Speaker 2: All those guys have bought in ad supported tears at 104 00:05:13,320 --> 00:05:16,360 Speaker 2: a lower price. According to the FT, Amazon did it 105 00:05:16,360 --> 00:05:19,839 Speaker 2: a bit different. It actually flipped it's more than two 106 00:05:19,880 --> 00:05:23,440 Speaker 2: hundred million title global subscribers to its ad supported service 107 00:05:23,839 --> 00:05:27,520 Speaker 2: unless they actively opted out and chose to pay more 108 00:05:27,560 --> 00:05:31,320 Speaker 2: for the premium ad free service. As a result, Amazon's 109 00:05:31,360 --> 00:05:33,640 Speaker 2: now saying it has an ad reach of about two 110 00:05:33,760 --> 00:05:34,400 Speaker 2: hundred million. 111 00:05:35,000 --> 00:05:37,279 Speaker 1: Yeah, that is quite a spectacular number. 112 00:05:37,440 --> 00:05:37,680 Speaker 2: Sean. 113 00:05:37,720 --> 00:05:40,119 Speaker 1: There we go, the top five business stories in five minutes. 114 00:05:40,160 --> 00:05:40,880 Speaker 1: Thank you very much. 115 00:05:41,080 --> 00:05:41,840 Speaker 2: Thank you, Michael. 116 00:05:42,120 --> 00:05:44,880 Speaker 1: It is Friday, the fourth of October twenty twenty four. 117 00:05:45,000 --> 00:05:47,320 Speaker 1: Remember to hit follow on the podcast, and if five 118 00:05:47,360 --> 00:05:49,600 Speaker 1: minutes isn't enough, you can find our longer daily show 119 00:05:49,640 --> 00:05:52,680 Speaker 1: called Fear and Greed wherever you listen to podcasts. I'm 120 00:05:52,680 --> 00:05:54,920 Speaker 1: Michael Thompson and that was the past five business news 121 00:05:54,920 --> 00:05:56,680 Speaker 1: by Fear and Greed. Had a great day.