1 00:00:03,800 --> 00:00:06,480 Speaker 1: Welcome to the Fear and Greed Business News Afternoon Report 2 00:00:06,519 --> 00:00:09,320 Speaker 1: for Tuesday, the tenth of September twenty twenty four. I'm 3 00:00:09,360 --> 00:00:12,239 Speaker 1: Sean Aylmer. Every afternoon, we've got the five stories that 4 00:00:12,280 --> 00:00:14,480 Speaker 1: happen today that you need to know about. Story number one. 5 00:00:14,560 --> 00:00:17,759 Speaker 1: The SMPA six two hundred closed up zero point three 6 00:00:17,800 --> 00:00:21,520 Speaker 1: percent today to eighty twelve points, having earlier in the 7 00:00:21,600 --> 00:00:24,760 Speaker 1: day been up quite a bit more. The banks keep giving, 8 00:00:24,760 --> 00:00:27,319 Speaker 1: with Commonwealth Bank today hitting a new record high of 9 00:00:27,320 --> 00:00:29,520 Speaker 1: one hundred and forty five dollars and twenty four cents 10 00:00:29,520 --> 00:00:32,240 Speaker 1: to share. Ac Quarry Group hit a new record also 11 00:00:32,360 --> 00:00:35,960 Speaker 1: of two hundred and twenty eight dollars fifty share, while Westpac, National, 12 00:00:35,960 --> 00:00:38,960 Speaker 1: Australia Bank and AA and Z are trading above or 13 00:00:39,040 --> 00:00:42,839 Speaker 1: at seven year highs. It came after UBS analysts suggested 14 00:00:42,920 --> 00:00:46,440 Speaker 1: investors choose banks over miners, arguing that even at these 15 00:00:46,440 --> 00:00:49,680 Speaker 1: elevated prices, the big banks are likely to do better 16 00:00:49,840 --> 00:00:53,600 Speaker 1: than the resource companies. Also affecting the banks, the regulator, 17 00:00:53,840 --> 00:00:57,720 Speaker 1: the Australian Prudential Regulation Authority, today announced plans to phase 18 00:00:57,840 --> 00:01:01,480 Speaker 1: out bank hybrid securities and force the financial companies to 19 00:01:01,480 --> 00:01:04,520 Speaker 1: replace them with cheaper and more reliable forms of capital 20 00:01:04,800 --> 00:01:07,199 Speaker 1: away from the banks. Energy in telco's did best today, 21 00:01:07,240 --> 00:01:10,760 Speaker 1: while materials companies performed worst. Taking a look at the 22 00:01:10,920 --> 00:01:14,800 Speaker 1: non bank large caps, wistet Global and QBE led the way. 23 00:01:14,959 --> 00:01:18,720 Speaker 1: Fortescue Metals was the main laggard. Story number two. The 24 00:01:18,760 --> 00:01:21,080 Speaker 1: Aussie dollar isn't having much fun at the moment. It's 25 00:01:21,120 --> 00:01:23,400 Speaker 1: trading around sixty six and a half US cents, hit 26 00:01:23,480 --> 00:01:27,360 Speaker 1: by fears and an economic slowdown and disappointing economic data 27 00:01:27,400 --> 00:01:30,640 Speaker 1: out of China. Oil prices have edged up again on 28 00:01:30,680 --> 00:01:35,240 Speaker 1: the back of Hurricane Francine shutting down drilling operations in Texas. 29 00:01:35,280 --> 00:01:38,160 Speaker 1: Still it's trading close to three year lows, gals buying 30 00:01:38,160 --> 00:01:40,800 Speaker 1: twenty five hundred US dollars an ounce, and there has 31 00:01:40,880 --> 00:01:43,560 Speaker 1: been a jump in iron ore prices on hopes it 32 00:01:43,640 --> 00:01:46,440 Speaker 1: may be Beijing we will provide some stimulus to the 33 00:01:46,520 --> 00:01:50,640 Speaker 1: Chinese economy. Story number three. Consumer sentiment has fallen on 34 00:01:50,680 --> 00:01:52,880 Speaker 1: the back of fears about the economic outlook and the 35 00:01:52,960 --> 00:01:57,000 Speaker 1: jobs market. The Westpac Melbourne Institute Index of Consumer Sentiment 36 00:01:57,040 --> 00:02:00,360 Speaker 1: fell half a percent, meaning pessimism has been the dominant 37 00:02:00,400 --> 00:02:03,560 Speaker 1: in motion for more than two years. Westpac Senior economist 38 00:02:03,600 --> 00:02:05,920 Speaker 1: Matthew Hassen says that there's a little sign of the 39 00:02:05,960 --> 00:02:09,680 Speaker 1: glumness lifting. Consumers are less worried about interest rates rising 40 00:02:09,960 --> 00:02:12,480 Speaker 1: and believe the cost of living crisis has ease somewhat, 41 00:02:12,760 --> 00:02:15,360 Speaker 1: but they do fear where the economy is heading and 42 00:02:15,360 --> 00:02:18,480 Speaker 1: what that means for employment. The survey also shows home 43 00:02:18,520 --> 00:02:21,600 Speaker 1: by a sentiment improved slightly in house price expectations have 44 00:02:21,720 --> 00:02:26,000 Speaker 1: cooled in Victoria and New South Wales. Story number four. Well, 45 00:02:26,040 --> 00:02:28,720 Speaker 1: the news wasn't any better in the business sector, with 46 00:02:28,800 --> 00:02:31,839 Speaker 1: both sentiment and conditions tumbling. According to the monthly National 47 00:02:31,840 --> 00:02:34,760 Speaker 1: Australia Bank Survey. The business sector has been the brighter 48 00:02:34,800 --> 00:02:36,760 Speaker 1: part of the economy, but now as an AB Chief 49 00:02:36,840 --> 00:02:41,880 Speaker 1: economist Alan Osta says, conditions, which measures jobs, sales and profitability, 50 00:02:42,360 --> 00:02:45,440 Speaker 1: are fairly clearly below average compared to the history of 51 00:02:45,480 --> 00:02:48,800 Speaker 1: the survey. Business confidence has now fallen to negative levels, 52 00:02:48,800 --> 00:02:52,080 Speaker 1: meaning that business is pessimistic. There's also been a strong 53 00:02:52,160 --> 00:02:55,080 Speaker 1: drop in the employment gauge, suggesting the post COVID boom 54 00:02:55,120 --> 00:02:58,959 Speaker 1: period for the labor market is over. Story number five. 55 00:02:59,080 --> 00:03:02,400 Speaker 1: Federal Treasure of Jim Charmers will consider negotiating with the 56 00:03:02,440 --> 00:03:05,840 Speaker 1: Greens to push through changes to the Reserve Bank. After 57 00:03:05,840 --> 00:03:09,640 Speaker 1: the Coalition rejected reforms around the proposed new interest rates 58 00:03:09,639 --> 00:03:13,000 Speaker 1: Setting Board, the country Central Bank really is becoming a 59 00:03:13,120 --> 00:03:17,760 Speaker 1: political football that won't help good economic policy making. Today, 60 00:03:18,080 --> 00:03:21,040 Speaker 1: the Shadow Treasurer Angus Taylor said the Coalition will oppose 61 00:03:21,080 --> 00:03:24,440 Speaker 1: plans to split the nine person RBA Board into separate 62 00:03:24,480 --> 00:03:28,560 Speaker 1: committees for interstrate setting and for governance unless the six 63 00:03:28,680 --> 00:03:32,560 Speaker 1: current external RBA Board members make it onto the nine 64 00:03:32,560 --> 00:03:36,000 Speaker 1: member interest Rate Setting Board. The splitting of the board 65 00:03:36,000 --> 00:03:38,680 Speaker 1: proposal came from an independent review of the bank last year, 66 00:03:38,720 --> 00:03:42,160 Speaker 1: and mister Taylor said the way it's planned it opens 67 00:03:42,160 --> 00:03:45,640 Speaker 1: the way for the Interstrate Setting Board to be politicized. Actually, 68 00:03:45,640 --> 00:03:47,640 Speaker 1: he said, and I quote, it would leave open the 69 00:03:47,640 --> 00:03:50,280 Speaker 1: option for a stitch up of the Reserve Bank Board 70 00:03:50,520 --> 00:03:53,680 Speaker 1: with legislation needed to pass parliament. Dr Chalmers said the 71 00:03:53,680 --> 00:03:57,560 Speaker 1: coalition's decision was irresponsible and disappointing and he'll now consider 72 00:03:57,680 --> 00:04:00,400 Speaker 1: negotiating with the Greens. For their part, The Greens have 73 00:04:00,400 --> 00:04:02,640 Speaker 1: made it clear that it wants any new legislation to 74 00:04:02,720 --> 00:04:06,400 Speaker 1: retain the Treasurer's veto power over the Reserve Bank, a 75 00:04:06,520 --> 00:04:08,640 Speaker 1: power that's already there, but it's never been used in 76 00:04:08,640 --> 00:04:11,800 Speaker 1: the sixty four year history of the Central Bank as 77 00:04:11,800 --> 00:04:14,240 Speaker 1: it for the Afternoon Report for Tuesday, the tenth of 78 00:04:14,280 --> 00:04:16,680 Speaker 1: September twenty twenty four. Michael Thompson and I will be 79 00:04:16,680 --> 00:04:19,080 Speaker 1: back tomorrow morning with the Wednesday edition off Her and 80 00:04:19,120 --> 00:04:22,119 Speaker 1: Greed business news. I'm Sean Elmer. Enjoy your evening.