1 00:00:04,110 --> 00:00:07,980 Michael Thompson: Australia promises more military equipment for Ukraine as the pressure 2 00:00:07,980 --> 00:00:13,379 Michael Thompson: grows on Russian president Vladimir Putin. The supplier to IGA and Mitre 10 3 00:00:13,380 --> 00:00:17,369 Michael Thompson: says sales are roaring along and change is afoot in 4 00:00:17,369 --> 00:00:21,840 Michael Thompson: the laser surgery industry in Australia. It's Tuesday the 27th 5 00:00:21,840 --> 00:00:25,439 Michael Thompson: of June 2023. Welcome to Fear and Greed, Australia's most 6 00:00:25,440 --> 00:00:29,700 Michael Thompson: popular business podcast. I'm Michael Thompson and good morning, Sean Aylmer. 7 00:00:29,969 --> 00:00:31,170 Sean Aylmer: Good morning, Michael. 8 00:00:31,889 --> 00:00:34,559 Michael Thompson: Sean, after the show, you have an interview coming up 9 00:00:34,709 --> 00:00:38,970 Michael Thompson: with James Chin Moody, who is the founder and CEO 10 00:00:38,970 --> 00:00:41,580 Michael Thompson: of Sendle. This is a really interesting business. 11 00:00:41,879 --> 00:00:46,380 Sean Aylmer: Yes, so Sendle is basically a competitor to Australia Post, particularly 12 00:00:46,620 --> 00:00:48,809 Sean Aylmer: in the small and medium- sized business segment of the 13 00:00:48,809 --> 00:00:53,369 Sean Aylmer: market. And what they've done is bring together different contractors 14 00:00:53,369 --> 00:00:56,190 Sean Aylmer: to effectively be able to deliver goods much cheaper. Well, 15 00:00:56,190 --> 00:00:58,140 Sean Aylmer: at least that's what Sendle says and that's what James 16 00:00:58,200 --> 00:01:01,350 Sean Aylmer: tells us in the chat this morning. Not a fan 17 00:01:01,350 --> 00:01:03,150 Sean Aylmer: of Aussie Post. I think it's fair to say that, 18 00:01:03,360 --> 00:01:06,089 Sean Aylmer: James, and so he talks about where they're going wrong 19 00:01:06,090 --> 00:01:10,438 Sean Aylmer: and why Sendle can kind of, as an upstart take 20 00:01:10,440 --> 00:01:14,370 Sean Aylmer: them on and provide cheaper packages. So definitely worth the listen. 21 00:01:14,670 --> 00:01:18,000 Michael Thompson: Yeah, especially if you're small business or medium- sized business 22 00:01:18,000 --> 00:01:20,220 Michael Thompson: or any business really. It is definitely worth a listen. 23 00:01:20,220 --> 00:01:21,449 Michael Thompson: It's coming up a little bit later on, but the 24 00:01:21,450 --> 00:01:24,450 Michael Thompson: main story this morning, Sean, Australia is part of a 25 00:01:24,450 --> 00:01:28,170 Michael Thompson: renewed global effort to help Ukraine in the wake of 26 00:01:28,170 --> 00:01:31,140 Michael Thompson: the aborted coup in Russia, which has left that country's 27 00:01:31,140 --> 00:01:33,210 Michael Thompson: president, Vladimir Putin, weakened. 28 00:01:33,690 --> 00:01:37,319 Sean Aylmer: Yes, definitely. Australia will send another 70 armored vehicles to 29 00:01:37,319 --> 00:01:41,639 Sean Aylmer: Ukraine as part of the 110 million package cabinet. Agreed 30 00:01:41,639 --> 00:01:43,768 Sean Aylmer: to the package at the same time as the high 31 00:01:43,770 --> 00:01:47,069 Sean Aylmer: court tossed out a bid by Russia to stop the 32 00:01:47,069 --> 00:01:50,550 Sean Aylmer: government from seizing land earmarked for a new embassy in 33 00:01:50,550 --> 00:01:54,270 Sean Aylmer: Canberra. Prime Minister Anthony Albanese said the military package was 34 00:01:54,270 --> 00:01:57,059 Sean Aylmer: not related to the events in Russia over the past 35 00:01:57,059 --> 00:02:01,859 Sean Aylmer: few days. It does include armored personal carriers and trucks. 36 00:02:02,009 --> 00:02:05,849 Sean Aylmer: It doesn't include Hawkeye armored vehicles, which Kyiv had campaigned 37 00:02:05,850 --> 00:02:08,850 Sean Aylmer: for, nor does it include the retired F/ A 18 38 00:02:08,850 --> 00:02:11,850 Sean Aylmer: fighter jets that we hold. It takes the total aid 39 00:02:11,850 --> 00:02:15,989 Sean Aylmer: from Australia to Ukraine since last February's invasion to just 40 00:02:16,020 --> 00:02:19,980 Sean Aylmer: short of 800 million dollars. Meanwhile, the Russian diplomat who 41 00:02:19,980 --> 00:02:24,418 Sean Aylmer: was effectively squatting on that parcel of land outside parliament 42 00:02:24,660 --> 00:02:29,010 Sean Aylmer: following the high court decision yesterday, left the premises, jumped 43 00:02:29,010 --> 00:02:31,889 Sean Aylmer: into a diplomatic car and drove off. Don't know much 44 00:02:31,889 --> 00:02:33,540 Sean Aylmer: about him, but that's just what happened. 45 00:02:34,020 --> 00:02:37,500 Michael Thompson: It was just pretty much a demountable, kind of like a shipping container, wasn't it? 46 00:02:37,620 --> 00:02:37,770 Sean Aylmer: Yeah. 47 00:02:37,770 --> 00:02:38,310 Michael Thompson: On the side. 48 00:02:39,930 --> 00:02:42,780 Sean Aylmer: That's it. The photo I saw, it was like he was carrying keys. He'd locked 49 00:02:42,780 --> 00:02:44,610 Sean Aylmer: it up thought, " Oh, that's it, roll up. I'm out 50 00:02:44,610 --> 00:02:45,870 Sean Aylmer: of here," and off he went. 51 00:02:46,410 --> 00:02:47,639 Michael Thompson: On the other side of the worlds Sean and the 52 00:02:47,639 --> 00:02:52,529 Michael Thompson: latest out of Russia, it seems kind of eerily quiet, 53 00:02:52,590 --> 00:02:56,099 Michael Thompson: doesn't it? Given the enormity of everything that happened over 54 00:02:56,099 --> 00:02:59,159 Michael Thompson: the weekend, it just seems a little bit odd. 55 00:02:59,549 --> 00:03:04,110 Sean Aylmer: Very odd, particularly in Moscow and in Russia. We're just 56 00:03:04,110 --> 00:03:06,990 Sean Aylmer: not hearing much from them. And just to recap, one 57 00:03:06,990 --> 00:03:11,130 Sean Aylmer: of President Vladimir Putin's most effective military commanders, mercenary boss, 58 00:03:11,130 --> 00:03:15,900 Sean Aylmer: Yevgeny Prigozhin, launched a coup against Putin, lasted about 24 59 00:03:15,900 --> 00:03:18,450 Sean Aylmer: hours. But in that period, he called on the military 60 00:03:18,450 --> 00:03:21,510 Sean Aylmer: to support him and managed to march 25,000 troops to 61 00:03:21,510 --> 00:03:25,410 Sean Aylmer: within 200 kilometers of Moscow while a truce was negotiated. 62 00:03:25,440 --> 00:03:30,000 Sean Aylmer: The coup, basically for the first time internally, questioned the 63 00:03:30,000 --> 00:03:34,919 Sean Aylmer: justification for Putin's invasion of Ukraine in public, and the 64 00:03:34,920 --> 00:03:37,680 Sean Aylmer: mercenaries managed to capture a couple of Russian cities without 65 00:03:37,680 --> 00:03:41,250 Sean Aylmer: a shot being fired demonstrating the lack of support for 66 00:03:41,250 --> 00:03:46,740 Sean Aylmer: Putin. The consensus is that Putin's leadership is wounded, possibly 67 00:03:46,950 --> 00:03:51,570 Sean Aylmer: fatally. His aura of total political control has been shattered. 68 00:03:52,049 --> 00:03:54,990 Sean Aylmer: He isn't saying anything but the volatility in global markets, 69 00:03:54,990 --> 00:03:59,670 Sean Aylmer: particularly gas markets and in currency markets, demonstrate just how 70 00:03:59,670 --> 00:04:02,760 Sean Aylmer: uncertain the future is for Vladimir Putin. 71 00:04:03,240 --> 00:04:06,179 Michael Thompson: All right. Now, how did local markets perform yesterday after 72 00:04:06,179 --> 00:04:07,740 Michael Thompson: the big selloff late last week? 73 00:04:08,040 --> 00:04:11,759 Sean Aylmer: Well, there was no recovery yesterday. The S& P/ ASX 200 74 00:04:11,760 --> 00:04:15,930 Sean Aylmer: closed down 0. 3% to 7, 079 points. That's a 75 00:04:15,930 --> 00:04:20,130 Sean Aylmer: new three- month low. Michael, there weren't many big falls, 76 00:04:20,130 --> 00:04:23,578 Sean Aylmer: just many, many falls really. All the big banks were 77 00:04:23,580 --> 00:04:26,009 Sean Aylmer: lower with National Australia Bank, the worst of the lockdown, 78 00:04:26,009 --> 00:04:29,760 Sean Aylmer: 1%, the big miners were down, so two Telstra, the 79 00:04:29,760 --> 00:04:33,000 Sean Aylmer: retailers were mixed while WiseTech Global jumped nearly 1% and 80 00:04:33,000 --> 00:04:36,960 Sean Aylmer: Cloud Accounting Group Zero was up 1. 7%. It was a bad 81 00:04:36,960 --> 00:04:39,839 Sean Aylmer: day for the coal miners. The Star Entertainment Group dropped, 82 00:04:39,839 --> 00:04:44,039 Sean Aylmer: say too did Qantas. The best performer was Metcash. More 83 00:04:44,040 --> 00:04:47,099 Sean Aylmer: on that one shortly. Gold stocks also rallied reflecting fears 84 00:04:47,100 --> 00:04:50,220 Sean Aylmer: about the global political outlook market leading. Newcrest Mining closed 85 00:04:50,220 --> 00:04:53,820 Sean Aylmer: up 1.2% and Northern Star Resources was more or less 86 00:04:53,820 --> 00:04:54,630 Sean Aylmer: 2% higher. 87 00:04:55,290 --> 00:04:57,869 Michael Thompson: Sean, you mentioned the gas market in the main story. 88 00:04:57,870 --> 00:04:59,160 Michael Thompson: What's happening there? 89 00:04:59,610 --> 00:05:02,669 Sean Aylmer: Well, there's plenty of uncertainty. Russia is, or was pre- 90 00:05:02,670 --> 00:05:07,980 Sean Aylmer: Ukraine invasion, a major global supplier of gas. What happens 91 00:05:07,980 --> 00:05:13,410 Sean Aylmer: now, given Putin's weakened position, is unclear. Also, there have 92 00:05:13,410 --> 00:05:17,099 Sean Aylmer: been ongoing outages in the region, so Norway's suffered outages. 93 00:05:17,099 --> 00:05:20,039 Sean Aylmer: The Netherlands plans to close a major gas field shortly. 94 00:05:20,339 --> 00:05:23,879 Sean Aylmer: Plenty of volatility in prices at the moment. Gas prices 95 00:05:23,879 --> 00:05:27,390 Sean Aylmer: have jumped in recent sessions having fallen back to more 96 00:05:27,390 --> 00:05:31,080 Sean Aylmer: normal pre- COVID levels ahead of that. If they rise, 97 00:05:31,529 --> 00:05:35,699 Sean Aylmer: we at home will probably feel that eventually. Otherwise, commodities 98 00:05:35,759 --> 00:05:39,779 Sean Aylmer: are generally higher. Cryptocurrencies have thus far held onto their 99 00:05:39,779 --> 00:05:42,118 Sean Aylmer: gains of last week, and Michael, the Aussie dollars is 100 00:05:42,119 --> 00:05:44,400 Sean Aylmer: buying just under 67 US cents. 101 00:05:44,520 --> 00:05:46,140 Michael Thompson: All right. We'll be back in a moment with the 102 00:05:46,140 --> 00:05:54,659 Michael Thompson: rest of the day's business news. Sean, we've had a 103 00:05:54,660 --> 00:05:58,770 Michael Thompson: run of bad news from retailers, but yesterday Metcash defied the 104 00:05:58,770 --> 00:06:01,650 Michael Thompson: trend announcing record annual sales and earnings. 105 00:06:02,070 --> 00:06:06,779 Sean Aylmer: Metcash supplies, 4, 000 retailers in the IGA and Foodland Networks, as 106 00:06:06,779 --> 00:06:11,070 Sean Aylmer: well as Mitre 10 hardware stores, bottle shop celebrations, IGA 107 00:06:11,070 --> 00:06:15,178 Sean Aylmer: Liquor and Bottle (inaudible) . Not only were sales growing 108 00:06:15,178 --> 00:06:16,769 Sean Aylmer: in the year to the end of April, but also 109 00:06:16,770 --> 00:06:19,260 Sean Aylmer: in the seven weeks since then. And that's really what 110 00:06:19,260 --> 00:06:21,840 Sean Aylmer: sent Metcash's share price up four and a half percent 111 00:06:22,200 --> 00:06:25,830 Sean Aylmer: yesterday, the best of the top 200. Food sales were 112 00:06:25,830 --> 00:06:29,009 Sean Aylmer: much higher in part thanks to inflation, though Chief Executive 113 00:06:29,010 --> 00:06:31,678 Sean Aylmer: Officer, Doug Jones, says this year there has been a 114 00:06:31,678 --> 00:06:35,758 Sean Aylmer: shift in shopping to more budget conscious items. He also 115 00:06:35,760 --> 00:06:38,789 Sean Aylmer: called out the tax burden in Victoria. Now Michael, I 116 00:06:38,790 --> 00:06:40,560 Sean Aylmer: had to point this one out because it just reminded 117 00:06:40,560 --> 00:06:42,630 Sean Aylmer: me a lot of you, the best performer of the 118 00:06:42,630 --> 00:06:47,669 Sean Aylmer: group was the business known as Total Tools, T O O 119 00:06:47,670 --> 00:06:49,380 Sean Aylmer: L S, Business Total Tools. 120 00:06:51,210 --> 00:06:52,111 Michael Thompson: Hang on, hang on, hang on, hang on, hang on. So I'm a- 121 00:06:52,111 --> 00:06:54,450 Sean Aylmer: You're a hardware man. I know that. 122 00:06:54,450 --> 00:06:56,700 Michael Thompson: I'm sure that's how you meant it. 123 00:06:56,940 --> 00:06:57,029 Sean Aylmer: Yes. 124 00:06:57,029 --> 00:06:59,640 Michael Thompson: I'm absolutely positive that that is how you meant it, 125 00:06:59,640 --> 00:07:02,969 Michael Thompson: Sean. Thank you very much for identifying me with the 126 00:07:02,970 --> 00:07:04,440 Michael Thompson: Total Tools business. 127 00:07:04,740 --> 00:07:08,310 Sean Aylmer: I know you love a hammer, a nail, a saw, 128 00:07:08,849 --> 00:07:09,210 Sean Aylmer: a drill. 129 00:07:09,210 --> 00:07:10,020 Michael Thompson: Can we move on? 130 00:07:10,199 --> 00:07:11,309 Sean Aylmer: Yeah. Please. 131 00:07:11,309 --> 00:07:17,670 Michael Thompson: Oh, Sean, I expect more from you. PWC Australia, look 132 00:07:17,970 --> 00:07:20,159 Michael Thompson: it's very rare that I am the one trying to 133 00:07:20,160 --> 00:07:23,940 Michael Thompson: keep this show on track. It feels like there's been 134 00:07:23,940 --> 00:07:28,169 Michael Thompson: a complete role reversal today, PWC Australia, Sean, intends to 135 00:07:28,170 --> 00:07:32,880 Michael Thompson: identify anyone who has " done anything wrong" once the firm 136 00:07:32,880 --> 00:07:36,450 Michael Thompson: finishes its internal investigation into its tax leak scandal. 137 00:07:36,900 --> 00:07:40,080 Sean Aylmer: Acting CEO Kristen Stubbins was in front of a New 138 00:07:40,080 --> 00:07:43,259 Sean Aylmer: South Wales inquiry yesterday. She said the firm had already 139 00:07:43,259 --> 00:07:47,039 Sean Aylmer: identified four people who were directly involved with the confidentiality 140 00:07:47,039 --> 00:07:49,470 Sean Aylmer: breach, along with others who were directed to go on 141 00:07:49,470 --> 00:07:53,520 Sean Aylmer: leave. Stubbins said PWC has engaged two external law firms 142 00:07:53,520 --> 00:07:56,729 Sean Aylmer: to help with the investigation. Adding that the tax leaks 143 00:07:56,790 --> 00:08:01,320 Sean Aylmer: scandal was caused by a small part of the firm's 144 00:08:01,410 --> 00:08:04,709 Sean Aylmer: tax practice. It also emerged, the firm only began a 145 00:08:04,709 --> 00:08:07,409 Sean Aylmer: deep investigation into what went on just six weeks ago, 146 00:08:07,650 --> 00:08:10,170 Sean Aylmer: even though this has been in the news for several months. 147 00:08:10,170 --> 00:08:13,050 Sean Aylmer: And indeed PWC, the firm itself, has known about it 148 00:08:13,050 --> 00:08:16,110 Sean Aylmer: for several years. So I'm not sure they're doing themselves 149 00:08:16,110 --> 00:08:18,779 Sean Aylmer: any favors at this inquiry at the moment. 150 00:08:18,929 --> 00:08:20,069 Michael Thompson: Yeah, that's not a good look, is it? 151 00:08:20,429 --> 00:08:23,490 Sean Aylmer: No, it's not. And even the fact that the tax 152 00:08:23,490 --> 00:08:26,400 Sean Aylmer: leak scandal was caused by a small part of the 153 00:08:26,400 --> 00:08:30,300 Sean Aylmer: firm's tax practice, I just don't think you should say it. 154 00:08:30,630 --> 00:08:34,230 Michael Thompson: No, no. This is a, it's just the whole thing 155 00:08:34,230 --> 00:08:37,469 Michael Thompson: is just a very, very ugly saga and unfortunately now 156 00:08:37,469 --> 00:08:39,839 Michael Thompson: we are just watching it. Just every day we seem 157 00:08:39,839 --> 00:08:42,630 Michael Thompson: to have another update and well, from a news and 158 00:08:42,630 --> 00:08:45,780 Michael Thompson: journalism perspective, it is quite thrilling. But you do just go, " 159 00:08:45,780 --> 00:08:47,070 Michael Thompson: This is awful." 160 00:08:47,429 --> 00:08:49,350 Sean Aylmer: And I also feel so sorry. There'd be a bunch 161 00:08:49,350 --> 00:08:52,530 Sean Aylmer: of people at PWC, not a bunch, the vast majority 162 00:08:52,530 --> 00:08:56,429 Sean Aylmer: of PWC people have done the right thing, have done 163 00:08:56,429 --> 00:09:00,149 Sean Aylmer: a great job, but there's just a few people who 164 00:09:00,150 --> 00:09:02,700 Sean Aylmer: haven't and the whole firm's been tarnished and that's really 165 00:09:02,700 --> 00:09:04,710 Sean Aylmer: unfair on those who have been doing a great job. 166 00:09:04,890 --> 00:09:09,330 Michael Thompson: Yeah, good point. Now Sean, ASX listed Silk Lasers share 167 00:09:09,330 --> 00:09:15,000 Michael Thompson: price jumped 18% yesterday after Westfarms upped its offer and won 168 00:09:15,000 --> 00:09:16,650 Michael Thompson: the backing of the company's board. 169 00:09:17,429 --> 00:09:20,189 Sean Aylmer: Another one for you Michael, another one for you, in 170 00:09:20,190 --> 00:09:21,929 Sean Aylmer: March last year, Westfarms is at board- 171 00:09:21,958 --> 00:09:23,250 Michael Thompson: No, no, I do not- 172 00:09:23,460 --> 00:09:23,939 Sean Aylmer: Did you interrupt? 173 00:09:23,940 --> 00:09:28,050 Michael Thompson: I do not accept this. I have accused you previously 174 00:09:28,980 --> 00:09:31,920 Michael Thompson: of being a frequent user of both Silk Lasers and 175 00:09:31,920 --> 00:09:35,129 Michael Thompson: also the Botox products associated with them as well. So 176 00:09:35,129 --> 00:09:37,050 Michael Thompson: I entirely reject this, Sean. 177 00:09:37,200 --> 00:09:39,328 Sean Aylmer: It's a little left field comment. I just thought you 178 00:09:39,330 --> 00:09:42,120 Sean Aylmer: like M& A activity in the share market. 179 00:09:42,360 --> 00:09:44,490 Michael Thompson: Oh, I'm sorry. Yes, please. I do. I enjoy that 180 00:09:44,490 --> 00:09:45,450 Michael Thompson: very much. Please go on. 181 00:09:45,750 --> 00:09:50,550 Sean Aylmer: In March last year, Westfarms bought Australian Pharmaceutical Industries, which 182 00:09:50,759 --> 00:09:54,719 Sean Aylmer: was a wholesale medicine provider and owned the Priceline pharmacy 183 00:09:54,719 --> 00:09:57,000 Sean Aylmer: chain as well as one of the two big retail 184 00:09:57,000 --> 00:10:00,570 Sean Aylmer: laser clinics in the country, clear Skincare Products, that company's 185 00:10:00,570 --> 00:10:03,958 Sean Aylmer: called. Now API has moved on the other big one, 186 00:10:03,960 --> 00:10:07,740 Sean Aylmer: the rival, Silk Laser. API initially bids $ 3. 15 a 187 00:10:07,740 --> 00:10:11,010 Sean Aylmer: share that was beat by Hong Kong Group EC Healthcare. 188 00:10:11,279 --> 00:10:15,960 Sean Aylmer: They offered $ 3. 35 a share. Now API has matched that bid 189 00:10:16,020 --> 00:10:20,040 Sean Aylmer: in an all cash offer. Shareholders love all Cash offers. 190 00:10:20,280 --> 00:10:24,029 Sean Aylmer: It values Silk Laser at $ 178 million. The Silk Laser 191 00:10:24,030 --> 00:10:27,540 Sean Aylmer: Board liked the deal, suggested shareholders accepted, hence the share 192 00:10:27,540 --> 00:10:29,040 Sean Aylmer: price jumped 18% yesterday. 193 00:10:29,490 --> 00:10:31,858 Michael Thompson: Now this is an interesting one, Sean. Corporate Travel has 194 00:10:31,860 --> 00:10:35,130 Michael Thompson: won a four- year travel management services contract with the 195 00:10:35,130 --> 00:10:36,000 Michael Thompson: federal government. 196 00:10:36,540 --> 00:10:39,570 Sean Aylmer: Now, I don't know much about corporate travel contracts, and 197 00:10:39,570 --> 00:10:42,840 Sean Aylmer: I'm assuming you don't either, but I'd imagine a four- 198 00:10:42,870 --> 00:10:46,379 Sean Aylmer: year government deal is a pretty good one. There'd be 199 00:10:46,379 --> 00:10:50,340 Sean Aylmer: plenty of travel. They'd use up all classes of the aircraft. I 200 00:10:50,340 --> 00:10:53,189 Sean Aylmer: reckon there'd be a few first class in there along 201 00:10:53,190 --> 00:10:56,490 Sean Aylmer: with the business class and the premium economy, they'd pay on 202 00:10:56,490 --> 00:11:01,170 Sean Aylmer: time and then very unlikely to default, let's face it. 203 00:11:01,440 --> 00:11:03,958 Sean Aylmer: Anyway, corporate deals said the deal will boost revenue by 204 00:11:03,960 --> 00:11:07,380 Sean Aylmer: 20% next financial year. Good on them. Along the same 205 00:11:07,380 --> 00:11:10,710 Sean Aylmer: lines, Vontier has secured a five- year services contract with 206 00:11:10,710 --> 00:11:14,309 Sean Aylmer: the Department of Defense. It involves repairing and maintaining things 207 00:11:14,309 --> 00:11:18,779 Sean Aylmer: like surveillance systems, marine craft, light armored vehicles, and protected 208 00:11:19,049 --> 00:11:22,920 Sean Aylmer: mobility vehicles. I reckon that's a pretty specialist deal, that 209 00:11:22,920 --> 00:11:23,401 Sean Aylmer: one, I'd imagine. 210 00:11:23,401 --> 00:11:28,110 Michael Thompson: Yeah, sounds like it. Sean, Appen share price tumbled 12% 211 00:11:28,110 --> 00:11:31,260 Michael Thompson: yesterday after its chief financial officer resigned without warning. 212 00:11:31,800 --> 00:11:36,179 Sean Aylmer: Investors don't like the unexpected, especially in companies like Appen, 213 00:11:36,450 --> 00:11:39,389 Sean Aylmer: which is promising a great future thanks to artificial intelligence, 214 00:11:39,450 --> 00:11:42,510 Sean Aylmer: but has still yet to produce the goods. What's worse 215 00:11:42,540 --> 00:11:46,740 Sean Aylmer: is that the Chief financial officer, Helen Johnson, only started 216 00:11:46,740 --> 00:11:49,740 Sean Aylmer: in the job two months ago. The company said Johnson 217 00:11:49,740 --> 00:11:53,790 Sean Aylmer: had resigned for family reasons. Appen's share price tumbled earlier 218 00:11:53,790 --> 00:11:57,539 Sean Aylmer: this year after downgrading revenue and earnings forecasts in May, 219 00:11:57,540 --> 00:11:59,850 Sean Aylmer: the company said it would cut 20% of its workforce. 220 00:12:00,090 --> 00:12:04,020 Sean Aylmer: It announced a strategy refresh based on AI. From then 221 00:12:04,020 --> 00:12:06,960 Sean Aylmer: its share price went on a run jumping 75% in about 222 00:12:06,960 --> 00:12:09,959 Sean Aylmer: three weeks. So the beginning of this month it was 223 00:12:09,960 --> 00:12:12,540 Sean Aylmer: at its high now it's back down to where it 224 00:12:12,540 --> 00:12:14,369 Sean Aylmer: was ahead of the run. 225 00:12:14,969 --> 00:12:17,549 Michael Thompson: Another company to have a tough day yesterday, Sean, was 226 00:12:17,549 --> 00:12:23,040 Michael Thompson: Tasmania based Lark Distilling. Its share price tumbled 17% after 227 00:12:23,040 --> 00:12:26,970 Michael Thompson: the whiskey maker said it faced a more challenging trading environment. 228 00:12:27,480 --> 00:12:31,349 Sean Aylmer: Also not helping is the uncertain economic environment since CEO 229 00:12:31,349 --> 00:12:35,849 Sean Aylmer: Satya Sharma. Lark is essentially a high- end whiskey maker 230 00:12:35,940 --> 00:12:38,610 Sean Aylmer: and a decline in consumer confidence has triggered a drop 231 00:12:38,610 --> 00:12:41,790 Sean Aylmer: in sales in recent weeks. Sharma only started at the 232 00:12:41,790 --> 00:12:44,309 Sean Aylmer: beginning of last month and he's been quick to restructure 233 00:12:44,309 --> 00:12:46,860 Sean Aylmer: the group. It's meant write- offs of obsolete goods and 234 00:12:46,860 --> 00:12:49,590 Sean Aylmer: gift baskets. When they write- off, they gave them to 235 00:12:49,590 --> 00:12:51,988 Sean Aylmer: someone, I hope. Anyway, they've also dropped some trials in 236 00:12:51,990 --> 00:12:55,890 Sean Aylmer: the gin and ready to drink alcohol segments. You may 237 00:12:55,890 --> 00:12:58,679 Sean Aylmer: remember, Michael, this company most for the sudden resignation of 238 00:12:58,679 --> 00:13:02,550 Sean Aylmer: its former boss, Jeff Bainbridge, who left the business just 239 00:13:02,550 --> 00:13:06,240 Sean Aylmer: before a video circulated of him in his underwear, smoking 240 00:13:06,240 --> 00:13:10,078 Sean Aylmer: crystal meth amphetamine. Now, Mr. Bainbridge claimed he was a 241 00:13:10,080 --> 00:13:13,320 Sean Aylmer: victim of an extortion case, but he left the company anyway. 242 00:13:13,890 --> 00:13:16,620 Michael Thompson: It's definitely one of the more kind of colorful CEO 243 00:13:16,620 --> 00:13:17,460 Michael Thompson: exits, wasn't it? 244 00:13:17,640 --> 00:13:18,900 Sean Aylmer: Yes, definitely. 245 00:13:19,500 --> 00:13:23,759 Michael Thompson: And finally, Sean, Prime Minister Anthony Albanese has expressed his 246 00:13:23,759 --> 00:13:27,689 Michael Thompson: condolences to the family of Simon Crean following the former 247 00:13:27,690 --> 00:13:29,279 Michael Thompson: labor leader's death on Sunday night. 248 00:13:29,789 --> 00:13:32,520 Sean Aylmer: Crean will get a state funeral after dying suddenly over 249 00:13:32,520 --> 00:13:35,309 Sean Aylmer: the weekend while in Germany for meetings on business and 250 00:13:35,309 --> 00:13:38,280 Sean Aylmer: trade. He was just 74 years old. During his career, 251 00:13:38,280 --> 00:13:41,189 Sean Aylmer: Crean was president of the Australian Council of Trade Unions, 252 00:13:41,429 --> 00:13:44,340 Sean Aylmer: a minister under former Prime Minister Paul Keating, and the 253 00:13:44,340 --> 00:13:49,110 Sean Aylmer: cabinet Minister from 2007 to 2013 under Prime Ministers Kevin Rudd and Prime Ministers Kevin Rudd and 254 00:13:49,110 --> 00:13:49,828 Sean Aylmer: Julia Gillard. 255 00:13:50,160 --> 00:13:54,210 Michael Thompson: Okay, international news now and China's consumer led economic recovery 256 00:13:54,210 --> 00:13:57,389 Michael Thompson: is showing signs of faltering prompting new calls for more 257 00:13:57,389 --> 00:13:58,379 Michael Thompson: economic stimulus. 258 00:13:58,800 --> 00:14:01,319 Sean Aylmer: Much of the world economy depends on China and a 259 00:14:01,320 --> 00:14:04,650 Sean Aylmer: few countries depend on it more than Australia. But official 260 00:14:04,650 --> 00:14:07,950 Sean Aylmer: data released in the last few days shows that domestic 261 00:14:07,950 --> 00:14:10,710 Sean Aylmer: travel spending for the Dragon Boat Festival holiday was lower 262 00:14:10,710 --> 00:14:13,770 Sean Aylmer: than pre- pandemic levels, home sales and below levels of 263 00:14:13,770 --> 00:14:16,800 Sean Aylmer: previous years, and estimates for June car sales are lower 264 00:14:16,800 --> 00:14:20,340 Sean Aylmer: than a year ago. The rebound in consumption after China 265 00:14:20,340 --> 00:14:24,420 Sean Aylmer: dropped its COVID controls propelled growth this year helping economies 266 00:14:24,420 --> 00:14:28,650 Sean Aylmer: like Australia, but confidence really is weak and evidence is 267 00:14:28,650 --> 00:14:32,460 Sean Aylmer: mounting that the economy needs more help. After the central 268 00:14:32,460 --> 00:14:35,639 Sean Aylmer: bank cut policy rates earlier this month, economists raised their 269 00:14:35,639 --> 00:14:39,089 Sean Aylmer: expectations for more monetary and fiscal stimulus. State run media 270 00:14:39,089 --> 00:14:42,419 Sean Aylmer: outlets also ran a series of articles about the need 271 00:14:42,510 --> 00:14:45,630 Sean Aylmer: for it and possible avenues of support. It just hasn't 272 00:14:45,660 --> 00:14:47,880 Sean Aylmer: arrived yet. So something to keep an eye on. 273 00:14:48,840 --> 00:14:52,679 Michael Thompson: Sean, New Zealand Prime Minister, Chris Hipkins, on the weekend 274 00:14:52,679 --> 00:14:56,099 Michael Thompson: flew to China for trade talks, taking a business delegation 275 00:14:56,099 --> 00:14:59,430 Michael Thompson: with him, but he took two planes in case one 276 00:14:59,430 --> 00:15:00,360 Michael Thompson: breaks down. 277 00:15:01,110 --> 00:15:03,869 Sean Aylmer: It sounds silly, but New Zealand Prime Ministers have a 278 00:15:03,870 --> 00:15:07,230 Sean Aylmer: history of traveling overseas and having their plane in need 279 00:15:07,230 --> 00:15:10,679 Sean Aylmer: of repairs. So Hipkins flew in a Royal New Zealand 280 00:15:10,679 --> 00:15:15,809 Sean Aylmer: Air Force, Boeing 757 and a second 757 accompanied the first 281 00:15:15,809 --> 00:15:18,810 Sean Aylmer: as far Manila, in the Philippines, basically a backup in 282 00:15:18,810 --> 00:15:23,760 Sean Aylmer: case of mechanical problems. " The 757s are around 30 years old. They're nearing 283 00:15:23,760 --> 00:15:26,130 Sean Aylmer: the end of their economic lives," the Prime Minister's department 284 00:15:26,130 --> 00:15:30,330 Sean Aylmer: said. Now, notwithstanding criticism within New Zealand about the fact 285 00:15:30,330 --> 00:15:33,690 Sean Aylmer: that two planes flew over and think about emissions, it 286 00:15:33,690 --> 00:15:37,080 Sean Aylmer: isn't really that surprising, Michael. Last year then Prime Minister 287 00:15:37,110 --> 00:15:42,150 Sean Aylmer: Jacinda Ardern got stuck on Antarctica when her Air Force C- 288 00:15:42,150 --> 00:15:45,570 Sean Aylmer: 130 transport plane broke down, she had to be flown 289 00:15:45,570 --> 00:15:49,469 Sean Aylmer: home by an Italian aircraft. Earlier on last year when 290 00:15:49,590 --> 00:15:52,530 Sean Aylmer: Adern visited the US to meet with President Joe Biden, 291 00:15:52,830 --> 00:15:55,650 Sean Aylmer: her Boeing broke down in Washington and had to leave 292 00:15:55,650 --> 00:15:58,680 Sean Aylmer: on a commercial flight instead. Also, last year the defense 293 00:15:58,680 --> 00:16:02,610 Sean Aylmer: minister and a 30 strong delegation got stuck in the Solomon Islands. 294 00:16:03,270 --> 00:16:06,120 Sean Aylmer: Back in 2016, then Prime Minister John Key was stuck 295 00:16:06,120 --> 00:16:10,260 Sean Aylmer: in Townsville overnight after the 757 carrying a trade delegation to 296 00:16:10,260 --> 00:16:13,680 Sean Aylmer: India broke down. So I'm not surprised they took a 297 00:16:13,680 --> 00:16:14,700 Sean Aylmer: couple of planes. 298 00:16:15,150 --> 00:16:17,730 Michael Thompson: No, it's not a good sign. You wouldn't feel comfortable 299 00:16:17,730 --> 00:16:20,280 Michael Thompson: taking off on a plane knowing that another plane had 300 00:16:20,280 --> 00:16:22,200 Michael Thompson: to follow in case it breaks down. You just hope 301 00:16:22,410 --> 00:16:24,270 Michael Thompson: if it does break down, I hope it breaks down 302 00:16:24,480 --> 00:16:28,230 Michael Thompson: on arrival and not just kind of somewhere along the way. 303 00:16:28,350 --> 00:16:28,829 Sean Aylmer: I agree. 304 00:16:29,250 --> 00:16:32,910 Michael Thompson: All right, last one, Sean. Danish drug giant Novo Nordisk 305 00:16:33,330 --> 00:16:37,800 Michael Thompson: said a late stage trial found that a high dose 306 00:16:37,830 --> 00:16:42,780 Michael Thompson: oral version of its drug semaglutide helped overweight or obese 307 00:16:42,780 --> 00:16:46,109 Michael Thompson: adults lose 15% of their body weight. Are you impressed 308 00:16:46,109 --> 00:16:47,729 Michael Thompson: that I knew how to pronounce that, Sean? 309 00:16:47,820 --> 00:16:49,979 Sean Aylmer: Oh, how did you know how to pronounce that? So 310 00:16:49,980 --> 00:16:52,560 Sean Aylmer: what the listeners probably don't realize, we kind of play 311 00:16:52,560 --> 00:16:54,600 Sean Aylmer: games with each other sometimes. So when there's a word 312 00:16:54,600 --> 00:16:57,690 Sean Aylmer: like semaglutide, which I didn't know how to pronounce, I'll 313 00:16:57,690 --> 00:17:00,990 Sean Aylmer: try and put it in introduction. So Michael has to do the hard work 314 00:17:00,990 --> 00:17:04,439 Sean Aylmer: and work out how to do it and well done. 315 00:17:04,440 --> 00:17:07,438 Michael Thompson: And on this particular occasion, I had a hunch that 316 00:17:07,440 --> 00:17:09,928 Michael Thompson: was coming up and so I just did a little bit 317 00:17:09,930 --> 00:17:11,821 Michael Thompson: of sneaky YouTubing while you were talking earlier. 318 00:17:11,821 --> 00:17:11,821 Sean Aylmer: I see. 319 00:17:11,821 --> 00:17:14,879 Michael Thompson: I was like, "Come on. I got to find a video that tells me 320 00:17:14,880 --> 00:17:18,630 Michael Thompson: how to do it," and I was just going to let it just go through seamlessly and no, 321 00:17:18,630 --> 00:17:20,640 Michael Thompson: you had to draw attention to it. Please go on. 322 00:17:21,000 --> 00:17:24,029 Sean Aylmer: Anyway. Novo plans to seek US and European regulatory approval 323 00:17:24,029 --> 00:17:27,090 Sean Aylmer: of the high dose pill later this year, but timing 324 00:17:27,090 --> 00:17:29,668 Sean Aylmer: of the market launch is still to be determined. According 325 00:17:29,670 --> 00:17:32,998 Sean Aylmer: to report on Reuters, pretty exciting this, the drug designed 326 00:17:33,000 --> 00:17:37,109 Sean Aylmer: to activate hormones that regulate blood sugar, slow stomach emptying 327 00:17:37,170 --> 00:17:40,589 Sean Aylmer: and decreased appetite is part of a new class of 328 00:17:40,590 --> 00:17:43,888 Sean Aylmer: drug that has reignited research and investor interest in the 329 00:17:43,890 --> 00:17:46,560 Sean Aylmer: weight loss treatment market. It's estimated to reach about a 330 00:17:46,560 --> 00:17:48,690 Sean Aylmer: hundred billion US dollars by the end of the decade. 331 00:17:48,960 --> 00:17:53,940 Sean Aylmer: Nova Nordisk already markets an oral semaglutide, but its highest 332 00:17:53,940 --> 00:17:59,309 Sean Aylmer: dose is 14 milligram. The late stage trial of 667 333 00:17:59,309 --> 00:18:03,688 Sean Aylmer: obese and overweight adults tested a dose of 50 milligrams showing that 334 00:18:03,690 --> 00:18:08,609 Sean Aylmer: it resulted in average weight loss of 15% after 68 335 00:18:08,609 --> 00:18:12,300 Sean Aylmer: weeks when used alongside diet and physical activity. Very exciting 336 00:18:12,300 --> 00:18:13,498 Sean Aylmer: for a lot of people, I'm sure. 337 00:18:13,770 --> 00:18:16,230 Michael Thompson: Yeah, certainly is. All right. Up next is the Fear 338 00:18:16,230 --> 00:18:19,350 Michael Thompson: and Greed interview. You're speaking today with James Chin Moody, 339 00:18:19,350 --> 00:18:21,030 Michael Thompson: founder and CEO of Sendle. 340 00:18:21,420 --> 00:18:26,340 Sean Aylmer: Yes. All about sending parcels and packages for small businesses 341 00:18:26,340 --> 00:18:28,170 Sean Aylmer: and why he doesn't like Aussie Post and why there's 342 00:18:28,170 --> 00:18:31,918 Sean Aylmer: a new competitor out there. It's just a very interesting 343 00:18:31,920 --> 00:18:35,609 Sean Aylmer: conversation about running a business and sort of David Goliath 344 00:18:35,609 --> 00:18:36,329 Sean Aylmer: style story. 345 00:18:36,630 --> 00:18:38,250 Michael Thompson: Yeah, it's a really good one. It's coming up next 346 00:18:38,250 --> 00:18:40,350 Michael Thompson: in the Fear and Greed playlist on your podcast platform 347 00:18:40,350 --> 00:18:43,678 Michael Thompson: or at fearandgreed. com. au. Sean, I nearly forgot to 348 00:18:43,680 --> 00:18:45,210 Michael Thompson: ask you about this, but I have to do it. 349 00:18:45,809 --> 00:18:49,409 Michael Thompson: Yesterday there was a big event for a lot of people. Taylor Swift, 350 00:18:49,410 --> 00:18:51,780 Michael Thompson: I think is coming to Australia next. 351 00:18:52,320 --> 00:18:52,350 Sean Aylmer: Oh, Michael, Michael, Michael. 352 00:18:52,350 --> 00:18:56,160 Michael Thompson: You knew this was coming. This was always going to happen. 353 00:18:56,340 --> 00:18:59,040 Sean Aylmer: I'd gotten through the whole podcast and we hadn't mentioned 354 00:18:59,040 --> 00:19:01,680 Sean Aylmer: Taylor Swift and Ticketek going down and all that. I thought, " 355 00:19:01,680 --> 00:19:02,369 Sean Aylmer: I'm free." 356 00:19:02,429 --> 00:19:05,910 Michael Thompson: No. So Ticketek, they had a few tech problems yesterday 357 00:19:05,910 --> 00:19:07,650 Michael Thompson: when the first kind of round of tickets went on 358 00:19:07,650 --> 00:19:09,869 Michael Thompson: sale and as soon as it happened, I thought, " This 359 00:19:09,869 --> 00:19:13,680 Michael Thompson: is a perfect excuse to ask Sean to tell his 360 00:19:13,830 --> 00:19:17,760 Michael Thompson: infamous Taylor Swift story." Tell us please, Sean. 361 00:19:18,119 --> 00:19:20,520 Sean Aylmer: Apologies to those who have heard it. I will give 362 00:19:20,550 --> 00:19:24,000 Sean Aylmer: the abridged version. Jackie and I were in New York. 363 00:19:24,000 --> 00:19:26,279 Sean Aylmer: We stayed at a very fancy hotel. We were treating 364 00:19:26,280 --> 00:19:29,218 Sean Aylmer: ourselves. There was a few paparazzi downstairs, that was all 365 00:19:29,219 --> 00:19:31,110 Sean Aylmer: right. We went in, we went up to our room, 366 00:19:31,470 --> 00:19:33,720 Sean Aylmer: beautiful place. I went downstairs to do something in the 367 00:19:33,720 --> 00:19:37,200 Sean Aylmer: foyer. I was downstairs and this woman was walking towards 368 00:19:37,200 --> 00:19:41,940 Sean Aylmer: me, this tall fair headed woman, and I looked at her, I thought, "I know her." And I had lived 369 00:19:41,940 --> 00:19:45,178 Sean Aylmer: in New York about a decade before, and I thought, " 370 00:19:45,179 --> 00:19:47,219 Sean Aylmer: Actually, I think I lived in the same apartment block." 371 00:19:47,219 --> 00:19:49,590 Sean Aylmer: In my mind, this is what's going on. That's it. I thought, " 372 00:19:50,040 --> 00:19:51,480 Sean Aylmer: Oh, I do know. What's her name? What's her name?" 373 00:19:51,480 --> 00:19:53,158 Sean Aylmer: And as we came closer together, I thought, " I'm going 374 00:19:53,160 --> 00:19:55,170 Sean Aylmer: to have to say hello." So I stopped her. I 375 00:19:55,170 --> 00:19:57,090 Sean Aylmer: said hello. I had a good chat. Great time to 376 00:19:57,090 --> 00:19:58,980 Sean Aylmer: be in New York this time of the year. Couldn't remember 377 00:19:58,980 --> 00:20:00,270 Sean Aylmer: her name, but I knew that I'd lived in the 378 00:20:00,270 --> 00:20:01,920 Sean Aylmer: same apartment block, or at least that's what I thought 379 00:20:01,920 --> 00:20:05,730 Sean Aylmer: I knew. She was very friendly to me. After about 30 or 40 seconds, 380 00:20:05,730 --> 00:20:08,250 Sean Aylmer: she goes, " Well see you," and I said, "See you later. Bye." And I went 381 00:20:08,250 --> 00:20:09,780 Sean Aylmer: up to Jackie and I said, " Guess what? I ran 382 00:20:09,780 --> 00:20:12,869 Sean Aylmer: into this woman," told the story. Somehow she pulled up 383 00:20:12,869 --> 00:20:16,408 Sean Aylmer: this woman's picture on the iPad and said, " Is that 384 00:20:16,410 --> 00:20:18,270 Sean Aylmer: who it was?" And I was very surprised that she 385 00:20:18,270 --> 00:20:22,259 Sean Aylmer: pulled up the picture and went, " Yes." And she said, " It's Taylor 386 00:20:22,260 --> 00:20:25,169 Sean Aylmer: Swift., dickhead." And that was that. 387 00:20:26,340 --> 00:20:29,250 Michael Thompson: It is glorious. It is one of my favorite stories 388 00:20:29,250 --> 00:20:29,550 Michael Thompson: of all time. 389 00:20:30,060 --> 00:20:30,090 Sean Aylmer: Oh, God. 390 00:20:30,540 --> 00:20:32,849 Michael Thompson: You have a list of them, like your encounters, your 391 00:20:32,849 --> 00:20:37,319 Michael Thompson: awkward encounters with celebrities like Snoop Dogg and Greg Norman and others, 392 00:20:38,638 --> 00:20:40,679 Michael Thompson: and Daniel Craig, I think you had one as well. 393 00:20:40,980 --> 00:20:42,750 Michael Thompson: I'm going to save the rest of those for another 394 00:20:42,750 --> 00:20:45,750 Michael Thompson: time because Taylor Swift needs to stand on her own 395 00:20:45,750 --> 00:20:49,379 Michael Thompson: on this one because it is just perfect. It is vintage Aylmer. Thank you 396 00:20:49,380 --> 00:20:50,040 Michael Thompson: very much, Sean. 397 00:20:50,700 --> 00:20:52,680 Sean Aylmer: Thanks, Michael. I really appreciate that ending. 398 00:20:53,040 --> 00:20:57,029 Michael Thompson: Anytime. It's Tuesday, the 27th of June 2023. Make sure 399 00:20:57,030 --> 00:21:00,119 Michael Thompson: you're following the podcast and join us online on LinkedIn, 400 00:21:00,119 --> 00:21:02,668 Michael Thompson: Instagram, Twitter, and Facebook and stay up to date on all 401 00:21:02,670 --> 00:21:04,920 Michael Thompson: the business news, of course, with Alexa and your Amazon 402 00:21:04,920 --> 00:21:07,980 Michael Thompson: Echo smart speaker, simply say, " Alexa, play the Fear and 403 00:21:07,980 --> 00:21:10,500 Michael Thompson: Greed podcast," to catch the latest episode, grab yours now 404 00:21:10,500 --> 00:21:13,438 Michael Thompson: at amazon. com. au. I'm Michael Thompson and that was 405 00:21:13,440 --> 00:21:15,060 Michael Thompson: Fear and Greed. Have a great day.