1 00:00:03,990 --> 00:00:06,479 Michael Thompson: A leading property group says there will be a steady 2 00:00:06,480 --> 00:00:09,240 Michael Thompson: improvement in the housing market over the next year, as 3 00:00:09,240 --> 00:00:12,269 Michael Thompson: the country's biggest lender changes its rules on how it 4 00:00:12,270 --> 00:00:16,529 Michael Thompson: lends. Andrew and Nicola Forrest donate $ 5 billion to their 5 00:00:16,529 --> 00:00:21,030 Michael Thompson: own charity and Qantas falls from fifth to 17th in 6 00:00:21,030 --> 00:00:24,780 Michael Thompson: the latest rankings of World Airlines. It's Thursday, the 22nd 7 00:00:24,780 --> 00:00:28,290 Michael Thompson: of June, 2023. Welcome to Fear and Greed, Australia's most 8 00:00:28,290 --> 00:00:32,190 Michael Thompson: popular business podcast. I'm Michael Thompson and good morning, Sean Aylmer. 9 00:00:32,580 --> 00:00:33,689 Sean Aylmer: Good morning, Michael. 10 00:00:33,960 --> 00:00:35,251 Michael Thompson: You know what today is, don't you, Sean? 11 00:00:35,251 --> 00:00:41,070 Sean Aylmer: It's Thursday. It's the 22nd of June. We're past the winter 12 00:00:41,070 --> 00:00:46,049 Sean Aylmer: solstice. How do they afford that, came out yesterday. What else? 13 00:00:46,290 --> 00:00:49,889 Michael Thompson: It was the winter solstice. Technically, it was early this 14 00:00:49,889 --> 00:00:50,729 Michael Thompson: morning, I believe. 15 00:00:51,269 --> 00:00:52,289 Sean Aylmer: Oh, is that right? I didn't know that. 16 00:00:52,289 --> 00:00:56,040 Michael Thompson: Yeah. That's right. It was at about 2: 00 AM or so 17 00:00:56,040 --> 00:00:58,320 Michael Thompson: this morning, I think but anyway, it just means that 18 00:00:58,380 --> 00:00:59,280 Michael Thompson: from now on- 19 00:00:59,700 --> 00:01:00,510 Sean Aylmer: Days get longer. 20 00:01:00,840 --> 00:01:02,610 Michael Thompson: Yep. The days get longer and everything gets a little 21 00:01:02,610 --> 00:01:05,669 Michael Thompson: bit brighter. Speaking of bright, Sean, we've got a great 22 00:01:05,670 --> 00:01:10,320 Michael Thompson: interview, very, very positive interview with Dr. Nicola Powell, Chief 23 00:01:10,350 --> 00:01:12,959 Michael Thompson: of Research and Economics at Domain coming up after the show. 24 00:01:13,260 --> 00:01:15,090 Sean Aylmer: Yes. It's all about the main story, so I don't 25 00:01:15,090 --> 00:01:19,170 Sean Aylmer: want to say too much, but she's definitely upbeat about 26 00:01:19,170 --> 00:01:23,520 Sean Aylmer: prospects for house prices and unit prices in many of 27 00:01:23,520 --> 00:01:24,959 Sean Aylmer: the capital cities across the country. 28 00:01:25,259 --> 00:01:26,849 Michael Thompson: Well, as you say, that is the main story this 29 00:01:26,849 --> 00:01:29,848 Michael Thompson: morning, the Australian property market is headed for a steady 30 00:01:29,879 --> 00:01:33,449 Michael Thompson: recovery over the next year with house prices. I find 31 00:01:33,450 --> 00:01:36,450 Michael Thompson: this remarkable in some cities, they are tipped to be 32 00:01:36,450 --> 00:01:39,719 Michael Thompson: back to record levels by the middle of next year. 33 00:01:40,319 --> 00:01:44,370 Sean Aylmer: That's according to the Domain Forecast Report, which is released 34 00:01:44,370 --> 00:01:48,029 Sean Aylmer: today. It says House prices in Sydney, Adelaide, and Hobart 35 00:01:48,029 --> 00:01:51,720 Sean Aylmer: will achieve the biggest gains. Sydney, Adelaide and Perth homes 36 00:01:51,990 --> 00:01:56,730 Sean Aylmer: could be trading around record levels within 12 months. In 37 00:01:56,730 --> 00:01:59,820 Sean Aylmer: the unit market prices in Brisbane, Adelaide and Hobart are 38 00:01:59,820 --> 00:02:03,030 Sean Aylmer: forecast to reach new highs. That's pretty remarkable given we 39 00:02:03,030 --> 00:02:06,210 Sean Aylmer: are still in a rising interest rate environment. Overall, the 40 00:02:06,240 --> 00:02:08,310 Sean Aylmer: report says that houses will do a bit better than 41 00:02:08,310 --> 00:02:11,370 Sean Aylmer: units. Regional Australia is expected to return to a more 42 00:02:11,370 --> 00:02:14,790 Sean Aylmer: traditional price pattern with a slower pace of growth anticipated 43 00:02:14,790 --> 00:02:18,030 Sean Aylmer: compared to the capital cities of the capital cities Domain 44 00:02:18,030 --> 00:02:22,409 Sean Aylmer: forecasts that Melbourne's recovery will be most sluggish for house 45 00:02:22,410 --> 00:02:25,770 Sean Aylmer: prices up just zero to 2% over the next 12 46 00:02:25,770 --> 00:02:29,940 Sean Aylmer: months, while unit prices in that city may still fall. 47 00:02:30,450 --> 00:02:33,000 Sean Aylmer: A ways to go there, Canberra is also expected to 48 00:02:33,000 --> 00:02:34,980 Sean Aylmer: underperform most other capital cities. 49 00:02:35,490 --> 00:02:39,239 Michael Thompson: Sean, it's good news obviously for homeowners, the prices have 50 00:02:39,240 --> 00:02:44,010 Michael Thompson: bottomed and are now rising. Is this all because of immigration? 51 00:02:44,430 --> 00:02:47,610 Sean Aylmer: It's partly because of immigration. Population pressure is definitely the 52 00:02:47,610 --> 00:02:51,690 Sean Aylmer: main consideration, reckons Domain's Chief of Research and Economics, Nicola 53 00:02:51,690 --> 00:02:53,820 Sean Aylmer: Powell, who we will be talking to straight after the 54 00:02:53,820 --> 00:02:57,360 Sean Aylmer: show, the push to lift temporary and permanent visa grants 55 00:02:57,360 --> 00:03:01,950 Sean Aylmer: to alleviate skills shortages as well as international students is 56 00:03:02,070 --> 00:03:04,830 Sean Aylmer: pretty much behind the jump in migration. There's also a 57 00:03:04,830 --> 00:03:07,798 Sean Aylmer: lack of new supply in many areas of the country. 58 00:03:07,980 --> 00:03:10,349 Sean Aylmer: That part of the equation is having different effect in 59 00:03:10,349 --> 00:03:13,439 Sean Aylmer: different geographies. One factor that will keep a lid on 60 00:03:13,440 --> 00:03:17,759 Sean Aylmer: prices though is affordability, Powell says, and another factor to 61 00:03:17,760 --> 00:03:21,510 Sean Aylmer: keep a watch on is serviceability buffers, how much extra 62 00:03:21,510 --> 00:03:24,450 Sean Aylmer: a borrower insists a lender has and is able to 63 00:03:24,450 --> 00:03:28,380 Sean Aylmer: pay before giving them a loan. It's been very controversial, 64 00:03:28,380 --> 00:03:28,890 Sean Aylmer: that one. 65 00:03:29,219 --> 00:03:32,490 Michael Thompson: Yeah, and on that issue, Commonwealth Bank yesterday said it's 66 00:03:32,490 --> 00:03:35,760 Michael Thompson: going to reduce the serviceability buffer on some loans from 67 00:03:35,760 --> 00:03:36,750 Michael Thompson: 3% to 1%. 68 00:03:37,830 --> 00:03:42,420 Sean Aylmer: Interesting, because regulators really don't want lenders to do that. 69 00:03:42,450 --> 00:03:46,889 Sean Aylmer: The lower buffer will apply to refinancing applications only. It 70 00:03:46,889 --> 00:03:49,679 Sean Aylmer: will only apply to borrowers who have not missed repayments 71 00:03:49,679 --> 00:03:51,269 Sean Aylmer: in the past year and where the loan is less 72 00:03:51,270 --> 00:03:54,960 Sean Aylmer: than 80% of the property's value. In that instance, that would 73 00:03:55,080 --> 00:03:58,050 Sean Aylmer: be the majority of loans that the Commonwealth Bank has. The 74 00:03:58,050 --> 00:04:00,210 Sean Aylmer: change has been made to help borrowers who have found 75 00:04:00,210 --> 00:04:03,179 Sean Aylmer: themselves unable to refinance because they no longer meet the 76 00:04:03,179 --> 00:04:06,990 Sean Aylmer: higher buffer hurdle following the jump in rates. That issue 77 00:04:06,990 --> 00:04:10,889 Sean Aylmer: has become known as the mortgage prison, and of course, 78 00:04:10,889 --> 00:04:13,890 Sean Aylmer: it's all about coming off those low fixed rate loans 79 00:04:13,890 --> 00:04:17,310 Sean Aylmer: onto much, much more expensive variable rate loans, and because 80 00:04:17,310 --> 00:04:19,650 Sean Aylmer: of that serviceability buffer not being able to afford them. 81 00:04:19,890 --> 00:04:21,690 Sean Aylmer: Anyway, Commonwealth Bank's doing something about that. 82 00:04:22,349 --> 00:04:24,719 Michael Thompson: Is it odd that the Commonwealth Bank would go against 83 00:04:24,719 --> 00:04:27,180 Michael Thompson: the wishes of the regulators and is it just because 84 00:04:27,330 --> 00:04:29,699 Michael Thompson: Commonwealth is just so big and they have the ability 85 00:04:29,699 --> 00:04:30,060 Michael Thompson: to do it? 86 00:04:31,110 --> 00:04:33,720 Sean Aylmer: Yes, so what I probably didn't realize until this story 87 00:04:33,720 --> 00:04:37,020 Sean Aylmer: was that the regulators say that's what they want, but 88 00:04:37,020 --> 00:04:40,469 Sean Aylmer: the banks obviously don't have to do it, and what 89 00:04:40,469 --> 00:04:44,129 Sean Aylmer: this does mean is that it's kind of a smart competition play 90 00:04:44,130 --> 00:04:46,830 Sean Aylmer: by Commonwealth Bank because they can say, " Hey, don't go 91 00:04:46,830 --> 00:04:50,820 Sean Aylmer: somewhere else because we'll actually put a lower serviceability buffer 92 00:04:50,820 --> 00:04:52,859 Sean Aylmer: on you so you will be able to get a 93 00:04:52,860 --> 00:04:55,049 Sean Aylmer: home loan from us.' So it's good. I wouldn't be 94 00:04:55,050 --> 00:04:58,559 Sean Aylmer: surprised if the other banks follow suit, but it is 95 00:04:58,559 --> 00:05:00,659 Sean Aylmer: somewhat unusual to go against the regulators. 96 00:05:00,809 --> 00:05:02,820 Michael Thompson: Yeah, it feels like now that one has defied the 97 00:05:02,820 --> 00:05:05,639 Michael Thompson: regulators, then it may well have set a precedent, so 98 00:05:05,639 --> 00:05:07,350 Michael Thompson: standby, we may see some others follow. 99 00:05:07,740 --> 00:05:12,510 Sean Aylmer: Yes, to be honest, I'm not quite sure technically what 100 00:05:12,810 --> 00:05:16,410 Sean Aylmer: the regulators can do in terms of enforcing that serviceability 101 00:05:16,410 --> 00:05:19,260 Sean Aylmer: buffer. My homework, Michael, my homework. 102 00:05:19,380 --> 00:05:21,719 Michael Thompson: Oh, excellent. I like the sound of that. What happened 103 00:05:21,719 --> 00:05:23,010 Michael Thompson: in local markets yesterday, Sean? 104 00:05:23,370 --> 00:05:30,810 Sean Aylmer: S& P ASX 200 closed down 0.6% to 7, 315 points ending a 105 00:05:30,960 --> 00:05:33,928 Sean Aylmer: seven session run there. Now that followed a week lead 106 00:05:33,928 --> 00:05:36,570 Sean Aylmer: in from Wall Street among the large caps. Macquarie Group 107 00:05:36,570 --> 00:05:39,509 Sean Aylmer: was one of the worst off 2. 6%. Woodside Energy 108 00:05:39,509 --> 00:05:43,230 Sean Aylmer: in Fortescu Metals were both off close to 2%. Bunch of 109 00:05:43,230 --> 00:05:46,980 Sean Aylmer: companies off 1% or more. BHP, Westpac, West Farmers, Transurban, 110 00:05:46,980 --> 00:05:51,150 Sean Aylmer: Rio, Goodman Group. I would say that's a widespread fall, 111 00:05:51,150 --> 00:05:54,450 Sean Aylmer: Michael. The consumer stocks were very much out of favor 112 00:05:54,450 --> 00:05:56,910 Sean Aylmer: on the back of fears about the declining consumer spending. 113 00:05:57,210 --> 00:06:02,070 Sean Aylmer: Premier investments, think Smiggles and Peter Alexander and places like 114 00:06:02,070 --> 00:06:05,970 Sean Aylmer: that, each share price fell 4. 6%. JB HiFi was 115 00:06:05,970 --> 00:06:10,920 Sean Aylmer: down 2. 3%. Super retail was off 2.6%, but worse 116 00:06:10,920 --> 00:06:13,920 Sean Aylmer: on the day was Flight Center. It dropped nearly 7%. 117 00:06:14,700 --> 00:06:17,159 Sean Aylmer: Mind you, there was some good news. A bunch of 118 00:06:17,160 --> 00:06:21,570 Sean Aylmer: stocks hit new highs or multi- year highs yesterday. The 119 00:06:21,570 --> 00:06:27,719 Sean Aylmer: insurers QBE, IAG and Suncorp all fit into that category. Remember, they've been 120 00:06:27,719 --> 00:06:31,080 Sean Aylmer: able to push through higher premiums, they payout good dividends, 121 00:06:31,410 --> 00:06:33,389 Sean Aylmer: kind of a good core for some investors at the 122 00:06:33,389 --> 00:06:37,770 Sean Aylmer: moment. Woolworths was another with its share price reaching $ 40 and 42 123 00:06:37,770 --> 00:06:41,190 Sean Aylmer: cents at its highest in nearly two years. Woolly's share 124 00:06:41,190 --> 00:06:44,010 Sean Aylmer: price is up more than 20% this year. Telstra hit 125 00:06:44,010 --> 00:06:48,269 Sean Aylmer: a multi- year high of $4 and 46 and cloud accounting software 126 00:06:48,270 --> 00:06:51,719 Sean Aylmer: Group zero hit a 52 week high. So certainly wasn't 127 00:06:51,719 --> 00:06:52,830 Sean Aylmer: all bad news yesterday. 128 00:06:53,010 --> 00:06:55,140 Michael Thompson: No, it's a bit happening. What about international markets? 129 00:06:55,620 --> 00:06:57,570 Sean Aylmer: The Aussie dollar has had a tougher time of it 130 00:06:57,570 --> 00:07:02,609 Sean Aylmer: in recent sessions. Expectations that China will provide significantly more 131 00:07:02,610 --> 00:07:05,759 Sean Aylmer: stimulus just haven't been met yet, and that's weighed on 132 00:07:05,759 --> 00:07:08,370 Sean Aylmer: the Aussie dollar. Of course, Australia does well when China 133 00:07:08,370 --> 00:07:10,560 Sean Aylmer: does well because we sell so much stuff to them 134 00:07:11,070 --> 00:07:13,560 Sean Aylmer: when people aren't paying as much for our stuff, the 135 00:07:13,560 --> 00:07:17,970 Sean Aylmer: Aussie dollar depreciates. Also, the Reserve Bank Board's minutes released 136 00:07:17,970 --> 00:07:20,400 Sean Aylmer: this week suggests the Central Bank is a little less 137 00:07:20,400 --> 00:07:23,729 Sean Aylmer: gung ho on lifting rates that also worked against the 138 00:07:23,730 --> 00:07:27,270 Sean Aylmer: Aussie is trading under 68 US cents in commodity prices. 139 00:07:27,839 --> 00:07:32,670 Sean Aylmer: Oil is up, gold is down, and coal fell yet 140 00:07:32,670 --> 00:07:34,830 Sean Aylmer: again. It's hit another two year low. 141 00:07:35,250 --> 00:07:37,110 Michael Thompson: All right, plenty going on. We'll be back in a 142 00:07:37,110 --> 00:07:45,570 Michael Thompson: moment with the rest of the day's business news. Sean, 143 00:07:45,570 --> 00:07:49,620 Michael Thompson: Telstra and TPG Telecom will not be able to share 144 00:07:49,620 --> 00:07:54,240 Michael Thompson: infrastructure in regional Australia after the Competition Tribunal upheld the 145 00:07:54,240 --> 00:07:56,460 Michael Thompson: decision to block a deal between the two. 146 00:07:56,880 --> 00:08:00,119 Sean Aylmer: It's a victory for the Australian Competition and Consumer Commission 147 00:08:00,120 --> 00:08:03,989 Sean Aylmer: that had argued the $ 1. 8 billion agreement between the 148 00:08:03,990 --> 00:08:08,610 Sean Aylmer: two would entrench Telstra's dominance and hurt mobile services. Yesterday, 149 00:08:08,610 --> 00:08:12,270 Sean Aylmer: the Australian Competition Tribunal concluded that the deal would increase 150 00:08:12,270 --> 00:08:16,439 Sean Aylmer: Telstra's strength relative to Optus. The agreement would have allowed TPG to use 151 00:08:16,440 --> 00:08:20,670 Sean Aylmer: Telstra's mobile towers in regional areas while Telstra would get 152 00:08:20,670 --> 00:08:24,600 Sean Aylmer: access to TPG's spectrum, which is used to transmit call 153 00:08:24,630 --> 00:08:27,930 Sean Aylmer: and internet signals. Michael O'Brien, the chair of the tribunal, 154 00:08:27,930 --> 00:08:31,440 Sean Aylmer: said the market was already highly concentrated and the partnership 155 00:08:31,440 --> 00:08:35,969 Sean Aylmer: would likely increase Telstra's strength in regional areas, but Telstra 156 00:08:35,969 --> 00:08:39,900 Sean Aylmer: Chief Executive, Vicky Brady said it was actually uneconomic at 157 00:08:39,900 --> 00:08:42,540 Sean Aylmer: times to build transmission lines in some areas of the 158 00:08:42,540 --> 00:08:46,170 Sean Aylmer: nation. Yesterday's announcement will impede the use of 5G in 159 00:08:46,170 --> 00:08:50,189 Sean Aylmer: the upcoming 6G spectrum, she said potentially the biggest loser 160 00:08:50,190 --> 00:08:53,550 Sean Aylmer: in all this is TPG, it's share price fell 6% yesterday. 161 00:08:54,150 --> 00:08:58,109 Michael Thompson: Sean, the biggest shareholder in AGL Energy billionaire, Mike Cannon- 162 00:08:58,109 --> 00:09:01,170 Michael Thompson: Brookes, has sold down his stake to free up money 163 00:09:01,170 --> 00:09:02,790 Michael Thompson: for investments in clean energy. 164 00:09:03,270 --> 00:09:06,540 Sean Aylmer: Yeah, he freed up almost $ 50 million as you do. Cannon- 165 00:09:06,540 --> 00:09:09,570 Sean Aylmer: Brookes, who is co- founder of Atlassian, said the power company 166 00:09:09,570 --> 00:09:14,459 Sean Aylmer: remains his largest investment. He's also the largest shareholder in 167 00:09:14,460 --> 00:09:18,900 Sean Aylmer: AGL. His company, Grok Ventures said it remains supportive of 168 00:09:18,900 --> 00:09:21,840 Sean Aylmer: the energy group adding that AGL should accelerate its exit 169 00:09:21,840 --> 00:09:26,010 Sean Aylmer: from coal fired power generation. Canon- Brookes, of course, surprised 170 00:09:26,010 --> 00:09:29,370 Sean Aylmer: everyone in May last year, he bought into the company, 171 00:09:29,370 --> 00:09:33,210 Sean Aylmer: he eventually owned almost 11.3% of AGL. It allowed him 172 00:09:33,210 --> 00:09:35,760 Sean Aylmer: to lead a campaign to stop management's plan to split 173 00:09:35,760 --> 00:09:38,790 Sean Aylmer: the company in two. Ultimately, his success led to an 174 00:09:38,790 --> 00:09:42,150 Sean Aylmer: implosion in the top management and board of the company and 175 00:09:42,390 --> 00:09:45,929 Sean Aylmer: an accelerated plan for closing coal power stations. Grok now 176 00:09:45,929 --> 00:09:49,979 Sean Aylmer: owns 10.4% of AGL according to a statement released yesterday. 177 00:09:50,610 --> 00:09:54,690 Michael Thompson: Rio Tinto will invest more than $ 900 million to increase copper 178 00:09:54,690 --> 00:09:58,530 Michael Thompson: production and processing at its operations in Utah in an 179 00:09:58,530 --> 00:10:01,830 Michael Thompson: effort to take advantage of the expected jump in prices of 180 00:10:01,920 --> 00:10:02,400 Michael Thompson: the metal. 181 00:10:02,730 --> 00:10:04,590 Sean Aylmer: Sorry, can you just say that state name again? 182 00:10:06,210 --> 00:10:09,030 Michael Thompson: I get very excited when I do, US states, in Utah. 183 00:10:09,089 --> 00:10:09,839 Sean Aylmer: Utah. 184 00:10:10,080 --> 00:10:14,040 Michael Thompson: Okay. Trivia question for you, Sean. Three US states that 185 00:10:14,040 --> 00:10:18,000 Michael Thompson: all have four letter names? Utah is obviously one of 186 00:10:18,000 --> 00:10:18,750 Michael Thompson: them. What are the other two? 187 00:10:18,900 --> 00:10:24,150 Sean Aylmer: I'm going Utah, Iowa, Ohio. 188 00:10:24,240 --> 00:10:27,750 Michael Thompson: Well done. You nailed it. Congratulations. You may now proceed. 189 00:10:28,049 --> 00:10:32,309 Sean Aylmer: Excellent. Rio Set aside around $ 730 million to expand the 190 00:10:32,309 --> 00:10:36,809 Sean Aylmer: Kennecott underground mine and will spend another $ 175 million to 191 00:10:36,809 --> 00:10:42,300 Sean Aylmer: upgrade processing. Kennecott is the second largest copper producer in 192 00:10:42,300 --> 00:10:46,469 Sean Aylmer: the US. In May, Rio approved a $ 300 million US 193 00:10:46,469 --> 00:10:48,809 Sean Aylmer: dollar rebuild on a smelter at the site near Salt 194 00:10:48,809 --> 00:10:52,620 Sean Aylmer: Lake City in Utah. Copper of course, is a key commodity 195 00:10:52,620 --> 00:10:56,010 Sean Aylmer: for the transition away from fossil fuels toward renewable energy, and 196 00:10:56,160 --> 00:10:59,730 Sean Aylmer: some market analysts expect demand to soar without a matching 197 00:10:59,730 --> 00:11:02,009 Sean Aylmer: increase in supply, at least in the short term. Hence, 198 00:11:02,009 --> 00:11:05,098 Sean Aylmer: prices will go up. Rio says the increase investment will 199 00:11:05,100 --> 00:11:10,140 Sean Aylmer: lead to an expected 250, 000 tons of additional mined copper 200 00:11:10,200 --> 00:11:13,920 Sean Aylmer: over the next 10 years. Now, Michael, can you give 201 00:11:13,920 --> 00:11:16,860 Sean Aylmer: me six or seven countries starting with letter I? 202 00:11:18,000 --> 00:11:21,718 Michael Thompson: Ireland, India, Indonesia. 203 00:11:21,960 --> 00:11:22,290 Sean Aylmer: Yep. 204 00:11:25,260 --> 00:11:30,630 Michael Thompson: Iraq and Iran. Ooh, I'm going to have to come 205 00:11:30,630 --> 00:11:33,809 Michael Thompson: back to you on some others. That's a great trivia 206 00:11:33,809 --> 00:11:34,170 Michael Thompson: question though. 207 00:11:34,170 --> 00:11:35,850 Sean Aylmer: Yeah, it is. Iceland. 208 00:11:36,660 --> 00:11:38,490 Michael Thompson: Oh, good one, but you're not allowed to nominate them. 209 00:11:38,490 --> 00:11:40,349 Michael Thompson: You've got the answers in front of you, I'm assuming. 210 00:11:40,409 --> 00:11:41,608 Sean Aylmer: No, I don't. I don't. 211 00:11:42,089 --> 00:11:47,429 Michael Thompson: Oh, okay. The PWC saga, Sean continues. It feels like it's been 212 00:11:47,429 --> 00:11:49,770 Michael Thompson: going on for some time now. We've got Parliament demanding 213 00:11:49,770 --> 00:11:54,809 Michael Thompson: that PWC name the 63 partners and staff caught up 214 00:11:54,809 --> 00:11:56,970 Michael Thompson: in the firm's tax leak scandal. 215 00:11:57,360 --> 00:12:01,740 Sean Aylmer: The Senate's Finance and Public Administration Committee's interim report released 216 00:12:01,800 --> 00:12:05,400 Sean Aylmer: yesterday reportedly calls for the firm to make the list 217 00:12:05,400 --> 00:12:07,679 Sean Aylmer: of names public. It includes the list of current and 218 00:12:07,679 --> 00:12:10,649 Sean Aylmer: former partners and staff who received at least one email 219 00:12:10,650 --> 00:12:14,790 Sean Aylmer: based on confidential information from the Federal Treasury, including advice 220 00:12:14,790 --> 00:12:18,480 Sean Aylmer: to clients on how to sidestep new multinational tax avoidance 221 00:12:18,539 --> 00:12:22,170 Sean Aylmer: laws relying on leaked intelligence from disgraced tax partner Peter 222 00:12:22,170 --> 00:12:26,190 Sean Aylmer: Collins. PWC argues that the group of partners and staff 223 00:12:26,190 --> 00:12:29,160 Sean Aylmer: were not aware the emails were based on confidential information 224 00:12:29,400 --> 00:12:31,409 Sean Aylmer: and should not be publicly identified. 225 00:12:32,219 --> 00:12:37,890 Michael Thompson: Australians support the resumption of contact between Australian and Chinese 226 00:12:37,890 --> 00:12:41,250 Michael Thompson: leaders as a positive step, Sean, according to Lowy Institute, 227 00:12:41,250 --> 00:12:42,300 Michael Thompson: polling and research. 228 00:12:42,690 --> 00:12:46,860 Sean Aylmer: But that doesn't mean Australians trust President Xi Jinping with 229 00:12:46,860 --> 00:12:49,828 Sean Aylmer: the Chinese leader and his country near the bottom of 230 00:12:49,830 --> 00:12:54,870 Sean Aylmer: Australian's lists of trusted leaders and superpowers. Lowy Institute director 231 00:12:54,870 --> 00:12:59,280 Sean Aylmer: Michael Foley, said Australians sharply declining perceptions of China have 232 00:12:59,280 --> 00:13:03,180 Sean Aylmer: leveled out as a relationship between the two countries stabilizers, 233 00:13:03,540 --> 00:13:06,328 Sean Aylmer: a slight majority still perceive China as a security threat 234 00:13:06,330 --> 00:13:09,809 Sean Aylmer: compared to an economic partner, although the threat perception has 235 00:13:09,809 --> 00:13:12,990 Sean Aylmer: dropped markedly from a year ago but three in four 236 00:13:12,990 --> 00:13:17,010 Sean Aylmer: Australians believe it's very or somewhat likely that China will 237 00:13:17,010 --> 00:13:20,130 Sean Aylmer: become a military threat to Australia in the next 20 238 00:13:20,130 --> 00:13:24,360 Sean Aylmer: years. While wholly supportive of the United States Alliance, Australians 239 00:13:24,360 --> 00:13:27,299 Sean Aylmer: are wary that being part of the pact could draw 240 00:13:27,299 --> 00:13:31,830 Sean Aylmer: the nation into war in Asia. Overall, 83% of Australians 241 00:13:31,830 --> 00:13:35,460 Sean Aylmer: approve of Prime Minister Anthony Albanese's handling of foreign policy. 242 00:13:35,790 --> 00:13:39,030 Sean Aylmer: What I find amazing about that, it's the highest score 243 00:13:39,360 --> 00:13:41,130 Sean Aylmer: out of any of the past five leaders. 244 00:13:41,400 --> 00:13:45,750 Michael Thompson: Wow. That's actually quite remarkable considering he wasn't someone who 245 00:13:45,750 --> 00:13:48,870 Michael Thompson: was expected to really excel on the international stage, more 246 00:13:48,870 --> 00:13:50,010 Michael Thompson: of a domestic politician. 247 00:13:50,250 --> 00:13:51,300 Sean Aylmer: Yeah, real surprise 248 00:13:51,720 --> 00:13:55,380 Michael Thompson: Italy, Sean. I completely missed it. 249 00:13:55,770 --> 00:13:56,250 Sean Aylmer: Italy. 250 00:13:56,580 --> 00:13:56,790 Michael Thompson: Yep. 251 00:13:56,790 --> 00:13:58,230 Sean Aylmer: I'm trying to remember what we said now. So we've 252 00:13:58,230 --> 00:14:01,559 Sean Aylmer: got Italy, India Island, Iraq, 253 00:14:02,009 --> 00:14:02,549 Michael Thompson: Iran. 254 00:14:02,730 --> 00:14:04,290 Sean Aylmer: Iran, Iceland, 255 00:14:05,219 --> 00:14:05,939 Michael Thompson: Indonesia. 256 00:14:06,029 --> 00:14:06,899 Sean Aylmer: Indonesia, 257 00:14:07,229 --> 00:14:08,909 Michael Thompson: India. Did I say that? Yes. 258 00:14:09,689 --> 00:14:10,110 Sean Aylmer: Yeah. Might as well say it again though. 259 00:14:10,200 --> 00:14:11,968 Michael Thompson: I think we're pretty well, pretty well there aren't we? 260 00:14:12,300 --> 00:14:12,809 Sean Aylmer: Surely. 261 00:14:13,380 --> 00:14:13,920 Michael Thompson: Israel? 262 00:14:14,580 --> 00:14:16,620 Sean Aylmer: Israel, excellent. Well done. 263 00:14:16,740 --> 00:14:18,299 Michael Thompson: There can't be many more. I'm going to have to 264 00:14:18,300 --> 00:14:21,869 Michael Thompson: Google it now. Sean Australia's richest man, Andrew Forrest and 265 00:14:21,870 --> 00:14:26,610 Michael Thompson: his wife Nicola, have donated almost $ 5 billion worth of 266 00:14:26,610 --> 00:14:30,120 Michael Thompson: Fortescue Metals Group shares to their own charity, the Minderoo Foundation. 267 00:14:30,540 --> 00:14:33,540 Sean Aylmer: The couple confirmed they would donate one fifth of their 268 00:14:33,540 --> 00:14:38,880 Sean Aylmer: shareholding in Fortescue, 220 million shares to Minderoo to create 269 00:14:38,880 --> 00:14:43,380 Sean Aylmer: what they called lasting change and the greatest possible good, 270 00:14:43,560 --> 00:14:46,200 Sean Aylmer: according to a story in the financial review. The Minderoo 271 00:14:46,200 --> 00:14:50,670 Sean Aylmer: Foundation supports marine and medical research, indigenous programs, as well 272 00:14:50,670 --> 00:14:54,780 Sean Aylmer: as the anti- slavery project Walk Free, which is run 273 00:14:54,780 --> 00:14:58,589 Sean Aylmer: by their daughter Grace. The donation takes Minderoo's endowment to 274 00:14:58,590 --> 00:15:03,390 Sean Aylmer: about $ 7. 6 billion, up from $ 2. 6 billion with 275 00:15:03,390 --> 00:15:06,150 Sean Aylmer: a foundation expected to release a long- term strategy in 276 00:15:06,150 --> 00:15:09,000 Sean Aylmer: coming months. Now, the funding is expected to increase money 277 00:15:09,000 --> 00:15:13,199 Sean Aylmer: available in these work streams rather than Minderoo necessarily branching 278 00:15:13,200 --> 00:15:16,709 Sean Aylmer: into new areas. Forrest said, this is Andrew Forrest said, " 279 00:15:16,709 --> 00:15:20,280 Sean Aylmer: Charities and foundations to whom the family had given Fortescue 280 00:15:20,430 --> 00:15:23,580 Sean Aylmer: stock in the past had always done better if they 281 00:15:23,580 --> 00:15:26,849 Sean Aylmer: had held the shares and grown on the dividends rather 282 00:15:26,849 --> 00:15:29,639 Sean Aylmer: than selling stock." The point there is that we're not 283 00:15:29,639 --> 00:15:32,969 Sean Aylmer: going to see a wholesale bunch of Fortescue shares on 284 00:15:32,969 --> 00:15:36,810 Sean Aylmer: the market because basically Forrest is saying Minderoo is going 285 00:15:36,840 --> 00:15:38,550 Sean Aylmer: to keep them and live off the dividends. 286 00:15:39,420 --> 00:15:41,970 Michael Thompson: All right. Turning to international news now, and former US 287 00:15:41,970 --> 00:15:46,500 Michael Thompson: President Donald Trump said he did not turn over presidential 288 00:15:46,500 --> 00:15:50,099 Michael Thompson: records to the National Archives because he was busy and 289 00:15:50,099 --> 00:15:52,649 Michael Thompson: had not yet had time to remove personal items from 290 00:15:52,650 --> 00:15:54,060 Michael Thompson: boxes packed at the White House. 291 00:15:54,389 --> 00:15:57,450 Sean Aylmer: Trump was charged earlier this month and pleaded not guilty 292 00:15:57,690 --> 00:16:01,380 Sean Aylmer: on 37 felony counts related to his retention of classified 293 00:16:01,380 --> 00:16:04,530 Sean Aylmer: documents in obstruction of justice. The federal government recovered more 294 00:16:04,530 --> 00:16:08,580 Sean Aylmer: than 300 documents with classified markings from Trump after he 295 00:16:08,580 --> 00:16:11,910 Sean Aylmer: left the White House, including from an FBI search of 296 00:16:11,910 --> 00:16:15,540 Sean Aylmer: his Mar- A- Lago Resort in August, 2022. This is where 297 00:16:15,540 --> 00:16:18,300 Sean Aylmer: it gets interesting, Michael. During an interview with Fox News, 298 00:16:18,570 --> 00:16:21,719 Sean Aylmer: Trump was asked about a portion of the indictment that 299 00:16:21,719 --> 00:16:25,499 Sean Aylmer: alleges he ordered an aid to move documents after they 300 00:16:25,500 --> 00:16:29,099 Sean Aylmer: were requested by the government. He responded saying he wanted 301 00:16:29,100 --> 00:16:31,710 Sean Aylmer: to take his things out of the boxes first, and 302 00:16:31,710 --> 00:16:34,830 Sean Aylmer: I quote, " These boxes were interspersed with all sorts of 303 00:16:34,830 --> 00:16:40,740 Sean Aylmer: things, golf shirts, clothing, pants, shoes. There were many things." 304 00:16:41,070 --> 00:16:44,460 Michael Thompson: So hang on, in this box there are government documents, 305 00:16:44,549 --> 00:16:46,619 Michael Thompson: then maybe a pair of pants, then some more government 306 00:16:46,619 --> 00:16:48,690 Michael Thompson: documents, and then a pair of shoes. It's a very 307 00:16:48,690 --> 00:16:50,070 Michael Thompson: odd packing style, isn't it? 308 00:16:50,850 --> 00:16:51,420 Sean Aylmer: Very odd. 309 00:16:52,650 --> 00:16:55,350 Michael Thompson: Now, Sean, we've mentioned this next one at the top 310 00:16:55,350 --> 00:16:59,040 Michael Thompson: of the show, the Annual Sky Tracks Awards have been 311 00:16:59,040 --> 00:17:03,330 Michael Thompson: announced, and these are obviously global ratings of airlines. Always 312 00:17:03,330 --> 00:17:05,428 Michael Thompson: a pub trivia favorite for me, these ones, because you 313 00:17:05,430 --> 00:17:08,070 Michael Thompson: get some good questions out of this, but Singapore Airlines 314 00:17:08,190 --> 00:17:11,550 Michael Thompson: has been named number one that a big mover in 315 00:17:11,550 --> 00:17:14,369 Michael Thompson: the wrong direction, mind you, was Qantas, which went from 316 00:17:14,369 --> 00:17:18,420 Michael Thompson: the fifth best Air airline in the world to number 17. 317 00:17:18,780 --> 00:17:21,388 Sean Aylmer: You got to work hard to do that. You can't 318 00:17:21,388 --> 00:17:23,819 Sean Aylmer: just go from five to 17 without trying, surely 319 00:17:25,530 --> 00:17:26,908 Michael Thompson: It's taken a bit of effort, hasn't it? 320 00:17:27,900 --> 00:17:31,020 Sean Aylmer: Now, these awards are pretty well regarded because they're based 321 00:17:31,020 --> 00:17:34,980 Sean Aylmer: on thousands of passenger satisfaction surveys. Singapore came in at 322 00:17:34,980 --> 00:17:40,138 Sean Aylmer: number one leapfrogging, Qatar Airways. Fiji Air was named the 323 00:17:40,138 --> 00:17:44,760 Sean Aylmer: best carrier for the Asia Pacific region, relegating Qantas to second. 324 00:17:44,940 --> 00:17:47,940 Sean Aylmer: I've flown Fiji Air, they were fantastic. 325 00:17:48,300 --> 00:17:52,740 Michael Thompson: Well, I will be flying Fiji Air in November, and 326 00:17:52,740 --> 00:17:54,870 Michael Thompson: I'm very much looking forward to it now. 327 00:17:54,900 --> 00:17:55,380 Sean Aylmer: Yeah. 328 00:17:55,950 --> 00:17:58,049 Michael Thompson: I mean, I was before as well, but now I'm 329 00:17:58,049 --> 00:17:58,769 Michael Thompson: even more so. 330 00:17:59,730 --> 00:18:03,420 Sean Aylmer: Qatar Airways claimed the best business class airline while Singapore 331 00:18:03,420 --> 00:18:07,680 Sean Aylmer: Airlines won the best first class and Eva Air, it's 332 00:18:07,680 --> 00:18:12,629 Sean Aylmer: a Taiwanese airliner, it was the best premium economy cabin. 333 00:18:12,630 --> 00:18:16,708 Sean Aylmer: Best economy class cabin, went to JAL, Japan Airlines. That 334 00:18:16,709 --> 00:18:19,920 Sean Aylmer: was the head of Qatar Airways, followed by Singapore Airlines, 335 00:18:20,160 --> 00:18:22,590 Sean Aylmer: Emirates, and Virgin Atlantic. I thought I'd better give the 336 00:18:22,590 --> 00:18:25,830 Sean Aylmer: economy top five because let's face it, that's how you 337 00:18:25,830 --> 00:18:29,758 Sean Aylmer: and I fly Qatar, Singapore, Emirates, Virgin Atlantic, not as 338 00:18:29,759 --> 00:18:33,059 Sean Aylmer: good as Japan Airlines. Anyway, Qantas was 13th in the business 339 00:18:33,059 --> 00:18:37,708 Sean Aylmer: class category sixth in the premium economy, 11th in first 340 00:18:37,710 --> 00:18:41,340 Sean Aylmer: class and where I sit, economy class came in 13th. 341 00:18:41,700 --> 00:18:43,740 Sean Aylmer: The other big mover in the wrong direction was British 342 00:18:43,740 --> 00:18:47,609 Sean Aylmer: Airways while low climbing, the ladder included Cafe Pacific, Eva 343 00:18:47,609 --> 00:18:51,299 Sean Aylmer: Air we mentioned, and Fiji Air. Finally, also, because this 344 00:18:51,299 --> 00:18:54,990 Sean Aylmer: one's for you, Michael, most family friendly airline went to 345 00:18:54,990 --> 00:18:59,850 Sean Aylmer: Air Canada. Garuda Indonesia won Best Cabin Crew. I like 346 00:18:59,850 --> 00:19:04,559 Sean Aylmer: that one, and Air Asia again, won the world's best 347 00:19:04,559 --> 00:19:06,569 Sean Aylmer: low cost carrier award. 348 00:19:07,109 --> 00:19:08,910 Michael Thompson: That's a fantastic story, and I'll give you a full 349 00:19:08,910 --> 00:19:11,579 Michael Thompson: report in November on what I thought of Fiji Airways. 350 00:19:11,609 --> 00:19:11,999 Sean Aylmer: Excellent. 351 00:19:12,388 --> 00:19:15,660 Michael Thompson: Now up next is the Fear and Greed Daily interview 352 00:19:15,930 --> 00:19:17,880 Michael Thompson: with Nicola Powell from Domain. 353 00:19:18,240 --> 00:19:21,119 Sean Aylmer: Yes, all about what's going to happen to house prices 354 00:19:21,119 --> 00:19:23,190 Sean Aylmer: and unit prices across the country. 355 00:19:23,400 --> 00:19:24,839 Michael Thompson: Yeah, it's a really good chat. It's coming up next 356 00:19:24,840 --> 00:19:27,449 Michael Thompson: in the Fear and Greed playlist on your podcast platform 357 00:19:27,450 --> 00:19:30,300 Michael Thompson: or at fearandgreed. com. au. Thank you, Sean. 358 00:19:30,600 --> 00:19:31,320 Sean Aylmer: Thank you, Michael. 359 00:19:31,530 --> 00:19:35,010 Michael Thompson: It's Thursday, the 22nd of June, 2023. Make sure you're 360 00:19:35,010 --> 00:19:38,340 Michael Thompson: following the podcast. Join us on online, on LinkedIn and 361 00:19:38,369 --> 00:19:41,040 Michael Thompson: Instagram, Twitter and Facebook, and stay up to date on 362 00:19:41,040 --> 00:19:43,529 Michael Thompson: all the business news with Alexa and your Amazon Echo 363 00:19:43,530 --> 00:19:46,259 Michael Thompson: Smart speaker. Simply say, " Alexa, play the Fear and Greed 364 00:19:46,260 --> 00:19:48,420 Michael Thompson: podcast," to catch the latest episode. You can get yours 365 00:19:48,450 --> 00:19:51,570 Michael Thompson: now at amazon. com. au. I'm Michael Thompson and that 366 00:19:51,570 --> 00:19:53,220 Michael Thompson: was Fear and Greed. Have a great day.