1 00:00:06,320 --> 00:00:11,680 Speaker 1: Regional airline REX falls into administration, VHP spends three billion 2 00:00:11,720 --> 00:00:15,200 Speaker 1: dollars as it chases copper assets in South America and 3 00:00:15,400 --> 00:00:19,160 Speaker 1: Chinese buyers rushed to purchase Australian wines. Welcome to Fear 4 00:00:19,200 --> 00:00:21,440 Speaker 1: and Greed. Daily business news for people who make their 5 00:00:21,440 --> 00:00:24,720 Speaker 1: own decisions. It is Wednesday, the thirty first of July 6 00:00:24,880 --> 00:00:28,120 Speaker 1: twenty twenty four. Are Michael Thompson and Good Morning, Sean Aylmer. 7 00:00:28,400 --> 00:00:29,880 Speaker 2: Good Morning Michael, Sean. 8 00:00:29,920 --> 00:00:34,280 Speaker 1: The main story this morning. Regional Express has fallen into administration, 9 00:00:34,400 --> 00:00:38,240 Speaker 1: with the Airlines Board agreeing to ground flights between capital 10 00:00:38,280 --> 00:00:40,960 Speaker 1: cities and focus on regional travel. 11 00:00:41,600 --> 00:00:44,400 Speaker 2: E Y will act as the administrator and Virgin Australia 12 00:00:44,440 --> 00:00:47,560 Speaker 2: has moved to quickly secure three leases of rare craft 13 00:00:47,640 --> 00:00:51,040 Speaker 2: from the flailing airline that are known as REX. Virgin 14 00:00:51,080 --> 00:00:53,840 Speaker 2: will also step into fly passengers booked on flights that 15 00:00:53,960 --> 00:00:57,840 Speaker 2: REX canceled late last night after a board meeting. The 16 00:00:57,880 --> 00:01:00,800 Speaker 2: announcement was made now in a statement, d Y said, 17 00:01:00,840 --> 00:01:03,000 Speaker 2: and I acquired Virgin Australia has made an offer for 18 00:01:03,040 --> 00:01:06,360 Speaker 2: REX customers with an existing ticket on a flight canceled 19 00:01:06,680 --> 00:01:10,080 Speaker 2: due to the administration process. The opportunity to transfer their 20 00:01:10,120 --> 00:01:14,640 Speaker 2: ticket free of charge to the thirteen overlapping Virgin Australia services. 21 00:01:14,760 --> 00:01:17,840 Speaker 2: Rex and Virgin Australia are also exploring opportunities to support 22 00:01:17,880 --> 00:01:22,440 Speaker 2: regional customers, which include Virgin Australia selling Rex's regional services 23 00:01:22,720 --> 00:01:26,199 Speaker 2: through code share or interline arrangements and making blossly frequent 24 00:01:26,240 --> 00:01:30,720 Speaker 2: fly benefits available to Rex's regional customers. Virgin then came 25 00:01:30,760 --> 00:01:32,720 Speaker 2: out later in the evening and said it would support 26 00:01:32,760 --> 00:01:36,120 Speaker 2: Rex's employees who could apply for jobs at the airline, 27 00:01:36,280 --> 00:01:39,319 Speaker 2: as well as via code sharing and interline that's ticket 28 00:01:39,360 --> 00:01:43,160 Speaker 2: selling in line agreements on the remaining regional flights. It 29 00:01:43,200 --> 00:01:46,080 Speaker 2: all came after a very busy day the Prime ministrans 30 00:01:46,080 --> 00:01:48,960 Speaker 2: in the Albanize. It was asked before this announcement. He 31 00:01:49,000 --> 00:01:51,240 Speaker 2: conceded that the government is speaking to the airline about 32 00:01:51,240 --> 00:01:54,440 Speaker 2: the issues it's facing. He wasn't very clear though, whether 33 00:01:54,440 --> 00:01:58,240 Speaker 2: it we'll support financially. Now asked whether the government was 34 00:01:58,280 --> 00:02:01,040 Speaker 2: ready to bail out Rex, Miss tra Alberanez, he said 35 00:02:01,040 --> 00:02:03,920 Speaker 2: the airline had already received substantial government support with no 36 00:02:04,040 --> 00:02:07,200 Speaker 2: conditions attached. He said the government would look at any 37 00:02:07,200 --> 00:02:09,320 Speaker 2: proposal put forward by Rex, but I'm sure we'll find 38 00:02:09,320 --> 00:02:11,200 Speaker 2: out more about that in coming days. 39 00:02:11,600 --> 00:02:13,760 Speaker 1: There's really been quite the saga, hasn't it. With the 40 00:02:13,800 --> 00:02:17,680 Speaker 1: executive chairman, Lim Kim High, who controls around fifty percent 41 00:02:17,680 --> 00:02:20,560 Speaker 1: of shares, being forced to step down last month. 42 00:02:21,000 --> 00:02:23,760 Speaker 2: It has been incredible saga. The board, including a long 43 00:02:23,800 --> 00:02:27,079 Speaker 2: time associate of mister Limb, was unanimous in its decision 44 00:02:27,120 --> 00:02:31,120 Speaker 2: to replace him as chairman after asset queried related party 45 00:02:31,160 --> 00:02:34,720 Speaker 2: transaction with mister Limb's brother in law and Rex's acquisition 46 00:02:34,919 --> 00:02:37,960 Speaker 2: of fly and fly Out operate at National Jet. There's 47 00:02:38,080 --> 00:02:41,120 Speaker 2: also been a vote to spill all board members except 48 00:02:41,440 --> 00:02:44,480 Speaker 2: for one who happens to be a representative appointed by 49 00:02:44,480 --> 00:02:48,480 Speaker 2: private equity firm PAG PAG. PAG invested in Rex in 50 00:02:48,520 --> 00:02:52,200 Speaker 2: November twenty twenty and is its main financier. It has 51 00:02:52,200 --> 00:02:54,520 Speaker 2: a right to two board seats under the terms of 52 00:02:54,560 --> 00:02:57,520 Speaker 2: its one hundred and fifty million dollar investment, but it 53 00:02:57,560 --> 00:03:00,720 Speaker 2: only utilizes one. However, it is now pushed for that 54 00:03:00,800 --> 00:03:03,880 Speaker 2: spill of the board away from the boardroom. Analysts say 55 00:03:03,919 --> 00:03:07,160 Speaker 2: its regional operations have been solid, but the decision by 56 00:03:07,200 --> 00:03:10,000 Speaker 2: Rex to buy nine Boeing seven three seven jets from 57 00:03:10,120 --> 00:03:13,720 Speaker 2: Virgin when that airline went into administration and start flying 58 00:03:13,720 --> 00:03:19,360 Speaker 2: the Brisbane Sydney Melbourne triangle. Just hasn't been successful. Recently 59 00:03:19,400 --> 00:03:21,840 Speaker 2: it added to Melbourne to Perth route ninety nine dollar 60 00:03:21,960 --> 00:03:25,919 Speaker 2: fares maybe though too low. Rex's travails come after low 61 00:03:25,960 --> 00:03:30,160 Speaker 2: cost carrier BONDSA collapsed earlier in the year. The outlook 62 00:03:30,280 --> 00:03:32,320 Speaker 2: for REX does not look promising. 63 00:03:32,840 --> 00:03:35,760 Speaker 1: Yeah, that sounds about right, Sean. After the show, you 64 00:03:35,840 --> 00:03:38,160 Speaker 1: have an interview coming up with. This is a great 65 00:03:38,240 --> 00:03:42,400 Speaker 1: chat with international aviation consultant Neil Hansford, who knows this 66 00:03:42,520 --> 00:03:44,320 Speaker 1: space so well. 67 00:03:44,520 --> 00:03:48,240 Speaker 2: You don't often get the phrase smart asked Pimply merchant 68 00:03:48,280 --> 00:03:50,960 Speaker 2: bankers on a Fear and Greed podcast, but we do. 69 00:03:51,040 --> 00:03:55,680 Speaker 2: In this interview, Neil plane spoken. Neil tells us what 70 00:03:55,720 --> 00:03:58,280 Speaker 2: he really thinks about the airline industry and about who's 71 00:03:58,360 --> 00:04:01,880 Speaker 2: running REX, in particular Killer, and it is a fascint. 72 00:04:01,880 --> 00:04:03,440 Speaker 2: I mean, he's just got such great insight. He's been 73 00:04:03,440 --> 00:04:05,840 Speaker 2: doing it for forty years. He knows these airlines so well, 74 00:04:06,360 --> 00:04:08,600 Speaker 2: and he doesn't always say what I expect him to say. 75 00:04:08,640 --> 00:04:11,080 Speaker 2: Neil and I learned a lot from the interview as well, 76 00:04:11,160 --> 00:04:12,640 Speaker 2: so it's definitely well worth a listen. 77 00:04:13,040 --> 00:04:16,719 Speaker 1: I think he might be the most direct person we 78 00:04:16,839 --> 00:04:19,880 Speaker 1: have ever had on this show, and it's worth listening 79 00:04:19,920 --> 00:04:21,960 Speaker 1: to just for that. It is coming up after the 80 00:04:21,960 --> 00:04:24,159 Speaker 1: show the interview with Neil Hansford, so stick around for 81 00:04:24,160 --> 00:04:26,640 Speaker 1: that one. Turning to local markets now Sewan, how did 82 00:04:26,640 --> 00:04:28,000 Speaker 1: they perform yesterday? 83 00:04:27,880 --> 00:04:30,440 Speaker 2: The SNPASX two hundred closed down half a percent to 84 00:04:30,480 --> 00:04:33,520 Speaker 2: seven nine hundred and fifty three points, with the Materials 85 00:04:33,600 --> 00:04:37,400 Speaker 2: index leading the market lower, while techtoks also underperformed. Come 86 00:04:37,480 --> 00:04:39,760 Speaker 2: Off Bank and Westpac were higher, but National Australia Bank 87 00:04:39,760 --> 00:04:42,280 Speaker 2: and ain Z were lower. The ladder down more than 88 00:04:42,279 --> 00:04:45,760 Speaker 2: one percent. Wistech Global and Woodside were among poor performers. 89 00:04:45,800 --> 00:04:48,919 Speaker 2: The best among the top the twenty or thirty stocks 90 00:04:49,000 --> 00:04:52,799 Speaker 2: outside those two banks telst csl Wes, Farmer's, Woollies, Coals 91 00:04:52,839 --> 00:04:56,480 Speaker 2: and QB. In corporate news, Ramsey Healthcare dropped three percent 92 00:04:56,520 --> 00:04:59,719 Speaker 2: after announcing the retirement of chief executive Craig McNally at 93 00:04:59,720 --> 00:05:02,560 Speaker 2: the end June twenty twenty five. The private hospital operator 94 00:05:02,839 --> 00:05:06,760 Speaker 2: has appointed ex Aully Supermarkets managing director Natalie Davis to 95 00:05:06,839 --> 00:05:11,880 Speaker 2: start as CEO elect In October this year, minor Igo 96 00:05:12,000 --> 00:05:14,920 Speaker 2: rallied three percent and then fell close to four point 97 00:05:14,960 --> 00:05:16,680 Speaker 2: four percent. Well, in fact, that's where it ended. It 98 00:05:16,760 --> 00:05:19,919 Speaker 2: ended down four point four percent. That's after reporting higher 99 00:05:20,000 --> 00:05:24,560 Speaker 2: underlying earnings. Credit Corps shares rallied fourteen percent after its 100 00:05:24,560 --> 00:05:28,960 Speaker 2: guidance came within analyst expectations, and Star Entertainment said it 101 00:05:29,000 --> 00:05:31,240 Speaker 2: wasn't aware of any information that could have triggered the 102 00:05:31,279 --> 00:05:34,200 Speaker 2: massive fifteen percent jump in its share price on Monday. 103 00:05:34,800 --> 00:05:36,880 Speaker 1: What about international markets? Much going on? 104 00:05:37,920 --> 00:05:40,640 Speaker 2: Always, Michael, Always, Oil prices are under pressure and the 105 00:05:40,680 --> 00:05:43,920 Speaker 2: back of concerns about demand out of China. At one point, 106 00:05:44,040 --> 00:05:47,080 Speaker 2: Print had fallen below eighty US dollars a barrel, goals 107 00:05:47,240 --> 00:05:49,960 Speaker 2: steady the Aussie dollars buying sixty five and a half 108 00:05:50,200 --> 00:05:54,120 Speaker 2: US cents. But since you asked, that is much going on. 109 00:05:54,400 --> 00:05:57,280 Speaker 2: Question in a fairly condescending manner, If you don't mind 110 00:05:57,320 --> 00:05:58,080 Speaker 2: me saying. 111 00:05:58,600 --> 00:06:00,400 Speaker 1: It's an inquisitive manners. 112 00:06:00,480 --> 00:06:05,039 Speaker 2: Genre is inquisitive? Fine, Well, I think it might be worthling. 113 00:06:05,040 --> 00:06:08,320 Speaker 2: At profit seasons they're going on in the US and Europe. 114 00:06:08,320 --> 00:06:11,800 Speaker 2: Two or three weeks into the June quarter profit season, 115 00:06:12,200 --> 00:06:16,320 Speaker 2: it's been a mixed earning season around the world. Broadly, 116 00:06:16,480 --> 00:06:21,120 Speaker 2: companies alluring full year sales and profit guidance as higher 117 00:06:21,160 --> 00:06:25,520 Speaker 2: interstrates and weakness in China's economy hurts global consumer sentiment. 118 00:06:26,080 --> 00:06:29,440 Speaker 2: But there's solid earnings growth. But I think that outlook statements, 119 00:06:29,440 --> 00:06:32,000 Speaker 2: all those outlook statements are taking the shine off the 120 00:06:32,080 --> 00:06:35,279 Speaker 2: pretty good results. A number of high profile companies have 121 00:06:35,440 --> 00:06:40,880 Speaker 2: underwhelmed investors, according to report on Reuters, including mc donald's automakers, 122 00:06:40,960 --> 00:06:45,160 Speaker 2: Nissen and Tesla, consumer giants Nesley and Uni Leader. Now 123 00:06:45,160 --> 00:06:48,320 Speaker 2: it's roughly forty percent of US and European companies reporting results. 124 00:06:48,360 --> 00:06:51,680 Speaker 2: Earnings have come in about as expected, but you know, 125 00:06:51,960 --> 00:06:54,920 Speaker 2: after the strong run by world equity markets, about as 126 00:06:54,960 --> 00:06:58,520 Speaker 2: expected seems just a little bit disappointing. There's a bunch 127 00:06:58,560 --> 00:07:02,360 Speaker 2: of big names reporting and coming Apple, Microsoft, Samsung, Toyota, 128 00:07:02,400 --> 00:07:06,200 Speaker 2: exce On Mobile, Shell, Lorrial, and added US. We'll keep 129 00:07:06,200 --> 00:07:07,880 Speaker 2: an eye on those, but it'll just be interesting to 130 00:07:07,880 --> 00:07:10,960 Speaker 2: see if that sort of trend of solid reporting up 131 00:07:11,040 --> 00:07:13,880 Speaker 2: to now, but just the future doesn't look quite as bright. 132 00:07:14,960 --> 00:07:17,440 Speaker 1: Sean, Can you give us any hints as to what 133 00:07:17,520 --> 00:07:20,880 Speaker 1: will be featured in the Fear and Greed weekly newsletter 134 00:07:20,880 --> 00:07:27,080 Speaker 1: which comes out hours away? Yeah, mere hours away. Any 135 00:07:27,320 --> 00:07:30,360 Speaker 1: any ideas as to what you're going to be just 136 00:07:30,600 --> 00:07:34,200 Speaker 1: really unloading on, unleashing upon today. 137 00:07:34,320 --> 00:07:38,280 Speaker 2: Actually I am doing something on interest rates. Obviously we 138 00:07:38,400 --> 00:07:42,560 Speaker 2: have the CPI figures out today, so it's fairly clear 139 00:07:42,560 --> 00:07:44,840 Speaker 2: that there be something on interest rates. I want to 140 00:07:44,840 --> 00:07:48,440 Speaker 2: do something on earning season as well, and a bit 141 00:07:48,440 --> 00:07:52,200 Speaker 2: of a crack at airlines too. Fantastic, Michael, I guess 142 00:07:52,240 --> 00:07:53,800 Speaker 2: I've got some idea this time last week I had 143 00:07:53,840 --> 00:07:56,360 Speaker 2: no idea what I was going to do, and. 144 00:07:56,320 --> 00:07:59,560 Speaker 1: You accuse me of being condescending before, and I have risked, 145 00:07:59,640 --> 00:08:01,920 Speaker 1: I know, a big risk of appearing a little bit 146 00:08:01,960 --> 00:08:04,720 Speaker 1: condescending going you have no idea what you're going to write. 147 00:08:05,080 --> 00:08:09,400 Speaker 1: But it is always worth subscribing to the Fear and 148 00:08:09,480 --> 00:08:12,720 Speaker 1: Greed weekly newsletter. It is entirely free. Just head along 149 00:08:12,720 --> 00:08:16,160 Speaker 1: to Fearangreed dot com dot au, pop your email address in. 150 00:08:16,240 --> 00:08:17,880 Speaker 1: And the beauty of it is that in Fear and 151 00:08:17,920 --> 00:08:20,600 Speaker 1: Greed the podcast, you get the news. In Fear and 152 00:08:20,640 --> 00:08:23,240 Speaker 1: Greed the newsletter, you get the views. I mean, you 153 00:08:23,280 --> 00:08:25,880 Speaker 1: get Sean's views. And I this is going to come 154 00:08:25,880 --> 00:08:28,760 Speaker 1: across as sounding really sarcastic, but I think they are 155 00:08:28,840 --> 00:08:30,600 Speaker 1: really interesting views. Sean. 156 00:08:30,760 --> 00:08:33,040 Speaker 2: Good, thank you very much. I take that as a compliment. 157 00:08:34,559 --> 00:08:36,160 Speaker 1: You took it the way it was an intent. It 158 00:08:36,240 --> 00:08:39,199 Speaker 1: was intended, So I actually really please about that. Considering 159 00:08:39,240 --> 00:08:40,800 Speaker 1: the way we've been going so far, it could have 160 00:08:40,840 --> 00:08:43,400 Speaker 1: gone either way. So sign up at fearangreed dot com 161 00:08:43,400 --> 00:08:46,320 Speaker 1: dot au and keep your eye on your inbox around 162 00:08:46,320 --> 00:08:48,920 Speaker 1: midday it or come through not long after the CPI 163 00:08:49,000 --> 00:08:50,960 Speaker 1: figures come through. All right, we'll be back in a 164 00:08:50,960 --> 00:08:59,679 Speaker 1: moment with the rest of the day's business news. Sean 165 00:08:59,720 --> 00:09:03,320 Speaker 1: ba HP will spend three point two billion dollars to 166 00:09:03,400 --> 00:09:06,880 Speaker 1: set up a joint venture with Canada's London family to 167 00:09:06,920 --> 00:09:11,440 Speaker 1: buy Toronto listed copper minor Philocorp, which holds stakes in 168 00:09:11,559 --> 00:09:14,920 Speaker 1: two copper projects, one Argentinian and one Chilean. 169 00:09:15,120 --> 00:09:18,120 Speaker 2: Yeah. BHP might have lost the fight for Anglo American 170 00:09:18,240 --> 00:09:21,240 Speaker 2: earlier in the year, but clearly its appetite for copper remains. 171 00:09:21,720 --> 00:09:23,760 Speaker 2: It already has a five percent stake in one of 172 00:09:23,800 --> 00:09:26,839 Speaker 2: the projects, the Philo del Sol, and will get part 173 00:09:26,920 --> 00:09:30,920 Speaker 2: of the nearby Jose Maria. It is a long term play. 174 00:09:30,960 --> 00:09:34,679 Speaker 2: Both minds a five thousand meters above sea level. There's 175 00:09:34,840 --> 00:09:38,240 Speaker 2: absolutely no infrastructure in the region. I mean, calling them 176 00:09:38,280 --> 00:09:42,000 Speaker 2: minds is probably a little ambitious. Because production is still 177 00:09:42,040 --> 00:09:44,600 Speaker 2: expected to be years away. But the idea is that 178 00:09:44,600 --> 00:09:47,960 Speaker 2: the joint venture partners build the infrastructure. They can be 179 00:09:48,000 --> 00:09:51,320 Speaker 2: shared by both sites, and BHP will own a large 180 00:09:51,400 --> 00:09:55,880 Speaker 2: chunk of the assets. Now BHP has for many years 181 00:09:56,400 --> 00:09:58,840 Speaker 2: kind of it likes to spread the risk by taking 182 00:09:58,880 --> 00:10:01,640 Speaker 2: interest in some of these smaller place to see how 183 00:10:01,679 --> 00:10:04,480 Speaker 2: they go. And they are higher risk, but they only 184 00:10:04,480 --> 00:10:07,160 Speaker 2: need one or two to really take off, and you're 185 00:10:07,160 --> 00:10:09,160 Speaker 2: getting your money back for the all the others that 186 00:10:09,280 --> 00:10:12,160 Speaker 2: perhaps didn't take off anyway. BHP's share price closed down 187 00:10:12,200 --> 00:10:13,560 Speaker 2: one point four percent yesterday. 188 00:10:14,800 --> 00:10:17,480 Speaker 1: Okay, so down one point four percent, not great news, 189 00:10:17,520 --> 00:10:20,520 Speaker 1: but still much much better than for TOSCU Medals trading 190 00:10:20,600 --> 00:10:24,360 Speaker 1: day FORDSCU fell ten percent yesterday. What was going on there? 191 00:10:24,840 --> 00:10:28,679 Speaker 2: Media reports suggest a large investor was trying to offload 192 00:10:28,720 --> 00:10:32,280 Speaker 2: one point nine billion dollars worth of discounted stock after 193 00:10:32,360 --> 00:10:36,200 Speaker 2: Monday's closing bill. Now that's a decent chunk of the minor. 194 00:10:36,800 --> 00:10:39,320 Speaker 2: The tumbling of its share price yesterday means it's down 195 00:10:39,360 --> 00:10:41,960 Speaker 2: nearly forty percent since early in the year. 196 00:10:42,440 --> 00:10:44,760 Speaker 1: Bit of good news for the wine sector sean with 197 00:10:44,880 --> 00:10:48,080 Speaker 1: data from Wine Australia showing a surge in exports to 198 00:10:48,240 --> 00:10:51,000 Speaker 1: China since the abolition of tariffs in late March. 199 00:10:51,360 --> 00:10:55,320 Speaker 2: Since exports restarted, sales that China have surged from about 200 00:10:55,360 --> 00:10:58,160 Speaker 2: eight million dollars in the twenty twenty three financial year 201 00:10:58,200 --> 00:11:01,880 Speaker 2: to four hundred million dollars last financial year. Almost all 202 00:11:01,960 --> 00:11:04,280 Speaker 2: of that would have been in the June quarter wine 203 00:11:04,280 --> 00:11:06,600 Speaker 2: worth at least twenty dollars a bottle. Not the stuff 204 00:11:06,679 --> 00:11:09,880 Speaker 2: you drink, Michael, the stuff I drink that drove the increase. 205 00:11:10,440 --> 00:11:13,480 Speaker 2: Wine Australia says to sales, probably it's about restocking rather 206 00:11:13,480 --> 00:11:17,720 Speaker 2: than retail sales, and consumption of domestic and imported wines 207 00:11:17,720 --> 00:11:19,559 Speaker 2: in mainland China is still less than a third of 208 00:11:19,600 --> 00:11:21,880 Speaker 2: what it was six years ago. There were five hundred 209 00:11:21,880 --> 00:11:25,400 Speaker 2: and seventy four Australian companies exporting to mainland China last 210 00:11:25,400 --> 00:11:28,080 Speaker 2: financial year, up from one hundred and fifteen the year before. 211 00:11:28,360 --> 00:11:30,360 Speaker 2: But prior to the imposition of duties there are about 212 00:11:30,360 --> 00:11:33,719 Speaker 2: two thousand companies exporting to mainland China, so we've still 213 00:11:33,760 --> 00:11:34,400 Speaker 2: got a waste to go. 214 00:11:35,200 --> 00:11:38,600 Speaker 1: Indeed, now, the former chief legal officer of Super Retail 215 00:11:38,679 --> 00:11:41,760 Speaker 1: Group has filed proceedings in the Federal Court against the 216 00:11:41,840 --> 00:11:46,079 Speaker 1: retailer it's chief executive and chairman to enforce a settlement 217 00:11:46,120 --> 00:11:48,280 Speaker 1: agreement relating to her dismissal. 218 00:11:48,559 --> 00:11:52,400 Speaker 2: Another saga, this one Harmer's workplace at Lawyers is representing 219 00:11:52,440 --> 00:11:56,520 Speaker 2: Rebecca Farrell, the former legal boss, and says she's a 220 00:11:56,520 --> 00:12:01,319 Speaker 2: whistleblower who exposed serious corporate governance issue within the company. 221 00:12:01,800 --> 00:12:04,280 Speaker 2: She claims that a settlement was reached with super Retail 222 00:12:04,280 --> 00:12:08,240 Speaker 2: on May six about her departure and other possible legal actions. 223 00:12:08,520 --> 00:12:11,400 Speaker 2: Super Retail surprised investors in late April when it disclosed 224 00:12:11,440 --> 00:12:14,200 Speaker 2: to the ASEX that it expected a claim for between 225 00:12:14,280 --> 00:12:17,400 Speaker 2: thirty million and fifty million dollars to be lodged by Harmers. 226 00:12:17,760 --> 00:12:20,480 Speaker 2: This is according to report in the AFR. The company 227 00:12:20,480 --> 00:12:23,920 Speaker 2: disputes the allegations and will defend the action. Super Retail 228 00:12:23,960 --> 00:12:26,720 Speaker 2: months ago said it expected the action to accuse CEO 229 00:12:27,200 --> 00:12:31,120 Speaker 2: Anthony Herety of having an undisclosed intimate relationship with former 230 00:12:31,160 --> 00:12:33,800 Speaker 2: head of human resources Jane Kelly, who left the business 231 00:12:33,880 --> 00:12:38,080 Speaker 2: last year. It also outlined accusations of bullying and inappropriate 232 00:12:38,080 --> 00:12:38,800 Speaker 2: company trouble. 233 00:12:39,720 --> 00:12:43,800 Speaker 1: Building approvals tumbled six point five percent during June following 234 00:12:43,800 --> 00:12:47,760 Speaker 1: a rise in May, demonstrating that the construction sector is 235 00:12:47,800 --> 00:12:49,240 Speaker 1: still in the doldron sean. 236 00:12:49,600 --> 00:12:53,240 Speaker 2: Ah sure is. The monthly result was well well below expectations, 237 00:12:53,240 --> 00:12:55,280 Speaker 2: a bit of a disaster really. The full and total 238 00:12:55,320 --> 00:12:58,680 Speaker 2: approvals was mainly driven by New South Wales, which fell 239 00:12:58,960 --> 00:13:02,719 Speaker 2: nineteen percent to under sixteen hundred houses. That's actually the 240 00:13:02,800 --> 00:13:05,720 Speaker 2: lawest recorded figure for the state since January twenty thirteen, 241 00:13:06,080 --> 00:13:09,440 Speaker 2: a mere shortages of materials and labor. Private sector dwelling 242 00:13:09,480 --> 00:13:12,319 Speaker 2: approvals excluding houses in June fell to the second lowest 243 00:13:12,320 --> 00:13:15,560 Speaker 2: monthly level since January twenty twelve, A twenty two percent 244 00:13:15,760 --> 00:13:19,240 Speaker 2: year on year. Four came amid tough conditions for apartments 245 00:13:19,320 --> 00:13:22,120 Speaker 2: due to high construction costs and interest rates. The point 246 00:13:22,160 --> 00:13:25,480 Speaker 2: here is not only is it difficult to find the 247 00:13:25,480 --> 00:13:29,640 Speaker 2: funds to actually build the places, it's really hard to 248 00:13:29,640 --> 00:13:32,319 Speaker 2: find the labor and the materials as well. It's all 249 00:13:32,360 --> 00:13:35,880 Speaker 2: coming together. It's a bit of a basket case construction 250 00:13:35,920 --> 00:13:38,240 Speaker 2: at the moment, or at least the residential construction sector 251 00:13:38,640 --> 00:13:39,760 Speaker 2: not much good news at all. 252 00:13:40,360 --> 00:13:45,319 Speaker 1: Indeed, now Cander has warned Australians in Lebanon to leave immediately, 253 00:13:45,520 --> 00:13:49,160 Speaker 1: amid escalating military action and concerns that flights may be 254 00:13:49,280 --> 00:13:52,080 Speaker 1: hard to find as airlines scale back. 255 00:13:52,400 --> 00:13:56,079 Speaker 2: The advice in the government's Smart Traveler site yesterday says 256 00:13:56,120 --> 00:14:00,120 Speaker 2: that the security situation could deteriorate rapidly throughout Lebanon with 257 00:14:00,240 --> 00:14:03,319 Speaker 2: little or no notice. Some airlines have already postponed or 258 00:14:03,360 --> 00:14:07,880 Speaker 2: canceled some flights, and further cancelations and disruptions could occurb. Alternatively, 259 00:14:07,920 --> 00:14:10,920 Speaker 2: airlines could set very high ticket prices for remaining flights. 260 00:14:11,200 --> 00:14:15,360 Speaker 2: Daily military action has increased in southern Lebanon, including rocket 261 00:14:15,400 --> 00:14:18,120 Speaker 2: missile fire as well as air strikes out of Israel. 262 00:14:18,360 --> 00:14:21,280 Speaker 2: It comes as Opposition leader Peter Dutton departed Australia for 263 00:14:21,280 --> 00:14:24,800 Speaker 2: an official visit to Israel. US diplomats are racing to 264 00:14:24,800 --> 00:14:27,800 Speaker 2: a full blown war between Israel and the Iranian backed 265 00:14:27,880 --> 00:14:31,280 Speaker 2: Lebanese movement hes Blah after an attack on the Israeli 266 00:14:31,320 --> 00:14:35,600 Speaker 2: occupied Golden killed twelve people at the weekend. Israel and 267 00:14:35,600 --> 00:14:38,080 Speaker 2: the US have blamed Hezbla for the rocket strike, though 268 00:14:38,080 --> 00:14:40,480 Speaker 2: the group itself has denied responsibility. 269 00:14:41,080 --> 00:14:45,080 Speaker 1: Okay, just returning to the airline industry, Sean and New Zealand, 270 00:14:45,160 --> 00:14:48,080 Speaker 1: which is jointly listed on the ASX and at Home, 271 00:14:48,600 --> 00:14:53,120 Speaker 1: has dumped its carbon emissions reduction targets, saying they're unachievable. 272 00:14:53,240 --> 00:14:54,160 Speaker 1: By twenty thirty. 273 00:14:54,920 --> 00:14:57,880 Speaker 2: The Kiwi carrier had been aiming to slash its carbon 274 00:14:57,920 --> 00:15:01,160 Speaker 2: intensity by twenty eight point nine percent compared to twenty 275 00:15:01,240 --> 00:15:04,760 Speaker 2: nineteen levels through the use of sustainable aviation fuel, a 276 00:15:04,800 --> 00:15:07,960 Speaker 2: lower emissions aircraft, and other changes, But now Air New 277 00:15:08,040 --> 00:15:10,080 Speaker 2: Zealand says many of the leavers needed to meet the 278 00:15:10,120 --> 00:15:14,240 Speaker 2: target are outside of its control and remain challenging. Chief 279 00:15:14,280 --> 00:15:17,600 Speaker 2: Executive Greg Foran said it had also become apparent in 280 00:15:17,640 --> 00:15:21,440 Speaker 2: recent months that potential delays to fleet renewal plans posed 281 00:15:21,480 --> 00:15:24,960 Speaker 2: an additional risk to the target's achievability. Air New Zealand 282 00:15:25,000 --> 00:15:27,560 Speaker 2: has previously been one of the more outspoken carriers on 283 00:15:27,600 --> 00:15:30,240 Speaker 2: sustainability issues. It was one of the first to announced 284 00:15:30,240 --> 00:15:32,960 Speaker 2: plans to develop carbon neutral aircraft for regional routs and 285 00:15:33,000 --> 00:15:35,840 Speaker 2: partnership with Airbus, though I think some of that is 286 00:15:35,880 --> 00:15:37,160 Speaker 2: now gained by the wayside. 287 00:15:37,560 --> 00:15:41,040 Speaker 1: Okay, turning to international news, now, protests are spreading across 288 00:15:41,080 --> 00:15:45,200 Speaker 1: Venezuela after President Nicholas Maduro claimed victory in a tense 289 00:15:45,240 --> 00:15:46,000 Speaker 1: weekend election. 290 00:15:46,400 --> 00:15:49,840 Speaker 2: The National Electoral Authority said mister Maduro had won a 291 00:15:49,960 --> 00:15:52,760 Speaker 2: third term with fifty one percent of the vote, a 292 00:15:52,800 --> 00:15:56,160 Speaker 2: result that extends a quarter century of socialist rule. Later, 293 00:15:56,200 --> 00:15:58,960 Speaker 2: it proclaimed mister Maduro would be president from twenty twenty 294 00:15:58,960 --> 00:16:01,360 Speaker 2: five to twenty thirty one one, adding he had won 295 00:16:01,400 --> 00:16:04,920 Speaker 2: and I quote the majority of valid votes. But governments 296 00:16:04,920 --> 00:16:07,440 Speaker 2: in Washington and elsewhere cast out on the results and 297 00:16:07,480 --> 00:16:11,760 Speaker 2: called for a full tabulation of votes. Independent expert polls 298 00:16:11,800 --> 00:16:15,560 Speaker 2: pointed to a landslide win for the opposition. Street marches followed, 299 00:16:15,880 --> 00:16:18,080 Speaker 2: including the firing of tear gas in a bid to 300 00:16:18,160 --> 00:16:21,760 Speaker 2: disperse the protesters. Some very disturbing scenes in that. 301 00:16:22,080 --> 00:16:24,880 Speaker 1: Finally Sean the saying goes that it's good to follow 302 00:16:24,920 --> 00:16:27,280 Speaker 1: the money, and it seems to have worked for people 303 00:16:27,320 --> 00:16:29,240 Speaker 1: who have followed Warren Buffett's money. 304 00:16:29,720 --> 00:16:33,080 Speaker 2: Yes, so it's interesting that his company, Berkshire Hathaway has 305 00:16:33,160 --> 00:16:37,120 Speaker 2: cut its massive profitable bet on Bank of America. The 306 00:16:37,200 --> 00:16:39,720 Speaker 2: US is second largest lender by a total of more 307 00:16:39,720 --> 00:16:43,440 Speaker 2: than three billion US dollars. The conglomerates started building an 308 00:16:43,480 --> 00:16:46,680 Speaker 2: investment in the bank in twenty eleven, its long range 309 00:16:46,720 --> 00:16:50,160 Speaker 2: as the top shareholder. Even after the sales, Berkshire still 310 00:16:50,200 --> 00:16:52,560 Speaker 2: holds about nine hundred and sixty two million chaares worth 311 00:16:52,720 --> 00:16:56,440 Speaker 2: almost forty billion US dollars. But it is interesting that 312 00:16:56,440 --> 00:16:59,400 Speaker 2: the legendary ninety three year old investor is cashing out. 313 00:17:00,000 --> 00:17:02,640 Speaker 2: America's share prices up twenty two percent this year. Maybe 314 00:17:02,720 --> 00:17:04,280 Speaker 2: Warren Buffett knows something we don't. 315 00:17:04,760 --> 00:17:06,880 Speaker 1: All right now, Up next is the Fear and Greed 316 00:17:06,960 --> 00:17:11,879 Speaker 1: Daily interview with international aviation consultant Neil Hansford. This is 317 00:17:12,080 --> 00:17:12,960 Speaker 1: not to be missed. 318 00:17:13,480 --> 00:17:16,320 Speaker 2: Nope. He lets fly on what he thinks is going 319 00:17:16,359 --> 00:17:20,680 Speaker 2: on at Rex, its owners, some of the management decisions. 320 00:17:21,119 --> 00:17:25,840 Speaker 2: He talks also about Virgin and Quantus and it is 321 00:17:26,200 --> 00:17:29,440 Speaker 2: a fun interview, more colorful than normal. Dare I say? 322 00:17:30,200 --> 00:17:32,200 Speaker 1: It is up next in the Fear and Greed playlist 323 00:17:32,240 --> 00:17:36,200 Speaker 1: on your podcast platform or at Fearangreed dot com dot au, 324 00:17:36,240 --> 00:17:38,240 Speaker 1: which is also where you sign up for the Fear 325 00:17:38,280 --> 00:17:42,199 Speaker 1: and Greed free weekly newsletter coming out later today. And 326 00:17:42,320 --> 00:17:45,919 Speaker 1: also if you happen to notice the Ask Fear and 327 00:17:46,000 --> 00:17:49,640 Speaker 1: Greed bonus episode that popped up in your playlist at 328 00:17:49,680 --> 00:17:53,600 Speaker 1: midday yesterday, worth a listener as well. Every week twice 329 00:17:53,640 --> 00:17:57,120 Speaker 1: a week. In fact, we answer listener questions in our 330 00:17:57,160 --> 00:17:59,919 Speaker 1: new bonus podcast called Ask Fear and Greed. If you 331 00:18:00,080 --> 00:18:02,800 Speaker 1: have a question sended on through via the website or 332 00:18:02,880 --> 00:18:05,600 Speaker 1: go to any of the social media platforms and flicker 333 00:18:05,640 --> 00:18:07,760 Speaker 1: through there, and we'll do our best to answer it, 334 00:18:07,800 --> 00:18:08,800 Speaker 1: won't we, Sean. 335 00:18:08,720 --> 00:18:12,040 Speaker 2: We will now, Michael, Whenever the newsletter comes out, I 336 00:18:12,040 --> 00:18:15,080 Speaker 2: don't think newsletter, I think how do they afford that? 337 00:18:16,640 --> 00:18:18,960 Speaker 1: Yes, because of course it's Wednesday and that is the 338 00:18:19,000 --> 00:18:20,840 Speaker 1: day that how do they afford? I'm all about the 339 00:18:20,840 --> 00:18:24,399 Speaker 1: newsletter these day, asn't I keep forgetting to plug? How 340 00:18:24,400 --> 00:18:26,280 Speaker 1: do they afford that? It does come out every Wednesday. 341 00:18:26,280 --> 00:18:30,320 Speaker 1: It's our sister podcast featuring me and financial planner Canna 342 00:18:30,359 --> 00:18:33,280 Speaker 1: Campbell talking about all things to do with personal finance 343 00:18:33,320 --> 00:18:35,359 Speaker 1: and money and making your money work hard of you 344 00:18:35,720 --> 00:18:39,560 Speaker 1: to date, Sean, we're talking about debt repayment strategies. There's 345 00:18:39,560 --> 00:18:42,600 Speaker 1: a whole lot of different strategies from the debt avalanche 346 00:18:42,880 --> 00:18:45,600 Speaker 1: and the debt snowball and a whole bunch of other ones, 347 00:18:45,640 --> 00:18:47,760 Speaker 1: and we kind of go through them all one by 348 00:18:47,800 --> 00:18:51,320 Speaker 1: one and kind of analyze them and can it. She's 349 00:18:51,359 --> 00:18:53,280 Speaker 1: kind of like Neil Hansford in a way and that 350 00:18:53,320 --> 00:18:56,120 Speaker 1: she's very direct and tells me exactly what she thinks, 351 00:18:56,160 --> 00:18:57,920 Speaker 1: and she doesn't hold back so I. 352 00:18:57,920 --> 00:19:00,320 Speaker 2: Reckon Kenner is nothing like Neil Hansforth. 353 00:19:00,800 --> 00:19:03,320 Speaker 1: Well only in the sense that she tells us what 354 00:19:03,359 --> 00:19:08,320 Speaker 1: she thinks, yes, exactly, then that respects it's a fair comparison. 355 00:19:08,359 --> 00:19:10,760 Speaker 1: I hope. I'm sorry Kenna, I'm sorry Neil. If I've 356 00:19:10,800 --> 00:19:13,800 Speaker 1: offended anyone, I'm sorry anyway. How do they afford that 357 00:19:13,880 --> 00:19:15,920 Speaker 1: out today? I'll put a link in today's show notes 358 00:19:16,000 --> 00:19:19,000 Speaker 1: as well. Thank you Sean, Thank you Michael. It is Wednesday, 359 00:19:19,040 --> 00:19:21,359 Speaker 1: the thirty first of July twenty twenty four. Make sure 360 00:19:21,400 --> 00:19:25,000 Speaker 1: you're following the podcast and please join us online on LinkedIn, Instagram, 361 00:19:25,359 --> 00:19:28,159 Speaker 1: x TikTok and Facebook. I'm Michael Thompson. And that was 362 00:19:28,160 --> 00:19:32,040 Speaker 1: fear and greed. Have a great day.