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Speaker 1: The Reserve Bank leaves interest rates on hold and there's

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Speaker 1: little optimism about a cut anytime soon. The Federal government

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Speaker 1: tells Australians to get out of Lebanon, and US university

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Speaker 1: rankings have become a very big business Welcome to Fear

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Speaker 1: and Greed. Daily business news for people who make their

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Speaker 1: own decisions. It is Wednesday, the twenty fifth of September

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Speaker 1: twenty twenty four. I'm Michael Thompson and good morning, Sean Aylmer.

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Speaker 2: Good morning, Michael, Sean.

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Speaker 1: The main story this morning, the Reserve Bank has left

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Speaker 1: interest rates on hold, meaning home loan and other lending

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Speaker 1: rates will remain around twelve year highs. And the thing

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Speaker 1: is the Reserve Bank has provided very little optimism about

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Speaker 1: rates falling anytime soon.

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Speaker 2: That's right. The Reserve Bank Board met over the past

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Speaker 2: couple of days and in short, they know the economy

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Speaker 2: is slowing, they know it's hurting people. But there are

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Speaker 2: still inflationary pressures around the place, primarily from more people

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Speaker 2: coming into the country, particularly students and touris, and a

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Speaker 2: tight labor market that means anyone who wants a job

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Speaker 2: can pretty much get one, and that's putting inflationary pressures

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Speaker 2: into the economy. There was no talk of rate cuts

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Speaker 2: in the official announcement and a hint about rate rises

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Speaker 2: if necessary, but Governor Michelle Bullock, speaking at a press

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Speaker 2: conference afterwards, said there was no explicit discussion about lifting

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Speaker 2: rates in the board meeting. The bank said underlying inflation,

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Speaker 2: not the headline rate is the most indicative of inflation momentum,

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Speaker 2: and at three point nine percent it's too high. Breserve

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Speaker 2: Bank doesn't see inflation returning sustainably to target until twenty

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Speaker 2: twenty six. Read between the lines and that suggests rates

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Speaker 2: are not coming down this year. They might not have

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Speaker 2: been come down in the early part of next year.

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Speaker 1: Sean, what about the fact that other economies are cutting

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Speaker 1: rates and we've talked a lot about this. It seems

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Speaker 1: like every almost every central bank around the world are

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Speaker 1: starting to cut rates. Does that factor into discussions? What

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Speaker 1: Governor Bullock said was that other economies are different to Australia.

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Speaker 1: Many countries' official interest rates went up further than they

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Speaker 1: did in Australia, so the starting point for rate cuts

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Speaker 1: is much higher. For example, the Australian benchmark is now

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Speaker 1: four point three five percent. The US benchmark after last

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Speaker 1: week's fifty basis point cut is five percent, same deal

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Speaker 1: in the UK. While the Reserve Bank is interested in

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Speaker 1: what's happening overseas, particularly on how it impacts the exchange rate. Ultimately,

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Speaker 1: Michelle Bullock said it comes down to what the Reserve

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Speaker 1: Bank thinks about the local outlook. She was asked about

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Speaker 1: the political furor surrounding the Central Bank's board and she

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Speaker 1: played a very straight back same deal. When asked about

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Speaker 1: the Australian Competition and Consumer Commission's allegations about Woolli's and

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Speaker 1: Cole's misleading customers on discounts, she said that outside mining business,

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Speaker 1: profit margins haven't expanded, but it is possible that some

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Speaker 1: individual firms might have used opportunities of strong demand to

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Speaker 1: more than pass on any increase in costs and increase

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Speaker 1: their profit margins. She wasn't talking specifically about those big

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Speaker 1: supermarket giants. What I did think was interesting yesterday Michael

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Speaker 1: and A. I know you're an avid watcher of Michelle

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Speaker 1: Bullock press conferences. It just didn't go on for as

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Speaker 1: long as it has previously, and it's almost like we're

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Speaker 1: over the novelty factor with Michelle Bullock and so we

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Speaker 1: just went in, they spoke about the economy, walked out.

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Speaker 2: That was that.

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Speaker 1: I don't think I'll ever get over the novelty factor

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Speaker 1: of the press conference as I find them fascinating. And

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Speaker 1: don't you get the vibe right when we're talking about

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Speaker 1: all the other economies cutting rates and Michelle Bullock just

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Speaker 1: saying no, no, we will do our own It feels

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Speaker 1: like any parents advice to a child comparing themselves to

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Speaker 1: everyone else. Run your own race. If you know what

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Speaker 1: everyone else is doing, We'll do our own thing.

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Speaker 2: Yeah, that question was asked in a different way about

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Speaker 2: three times yesterday in that press conference. She just went no, no,

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Speaker 2: we are going to do whatever suits us.

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Speaker 1: What else can she say? I mean that that you

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Speaker 1: would expect and you would hope for that response, wouldn't you?

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Speaker 2: You would? You would? What happens if she said yeah,

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Speaker 2: they're doing it, we might jump on board.

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Speaker 1: To oh, you mean others have done it? Well, just

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Speaker 1: go back into the meeting. I'll see you in twenty minutes.

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Speaker 1: Might have a different decision for you anyway. And Sean,

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Speaker 1: I'm sure we can expect some commentary on this in

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Speaker 1: the Fear and Greed newsletter. The weekly newsletter which is

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Speaker 1: out well in just a matter of hours. It comes

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Speaker 1: out Wednesday mid morning. And will you be teeing off

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Speaker 1: on this?

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Speaker 2: I will be. I don't know where the teeing off

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Speaker 2: is the right way of putting, but I certainly have

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Speaker 2: not quite changed my opinion. But yes, have a bit

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Speaker 2: to say on.

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Speaker 1: Oh good tease. Head along to Fearangreed dot com dot au,

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Speaker 1: pop your email address in, sign up for the free

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Speaker 1: weekly newsletter and you two you can find out what

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Speaker 1: that very enticing opinion is that Sean is offering us

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Speaker 1: at the land in your in your inbox mid morning.

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Speaker 1: Let's have a look at local markets. How do they go?

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Speaker 2: Yesterday s and pasix two hundred closed down just to

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Speaker 2: touch zero point one percent to forty two points. It

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Speaker 2: was like an opposite day where the opposite of what's

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Speaker 2: happened most of the year actually happened. So the miners

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Speaker 2: did well and the banks did poorly. A stimulus announcement

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Speaker 2: out of Beijing more on that surely helped BHP and

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Speaker 2: Rio Tinto jump almost four percent, while fort S fu

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Speaker 2: Metals Group rose one point six percent, but National Australia

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Speaker 2: Bank and the Commwealth Bank ended the day down three percent.

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Speaker 2: West Pac and A and Zed were off more than

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Speaker 2: two percent. The share prices of the two big supermarkets,

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Speaker 2: Walls and Coals fell further following Monday's revelation that the

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Speaker 2: competition watchdog accused the giants of misleading customers by saying

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Speaker 2: they were dropping prices when they're actually lifting them. At

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Speaker 2: least that's the allegation. Both were down around two point

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Speaker 2: seven percent yesterday. The uranium miners, they're having a great time.

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Speaker 2: They've continued their positive trend, with Paladin, Boss Energy, and

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Speaker 2: Deep Yellow all higher following the reopening of a nuclear

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Speaker 2: reactor in the US. They are among the best on

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Speaker 2: the day. Worst on the day was a company called

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Speaker 2: Light and Wonder. Now that's a company. I've got to say.

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Speaker 2: I knew nothing about Light and Wonder.

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Speaker 1: We've never mentioned it before on the show.

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Speaker 2: No, we have not. It only did I think this

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Speaker 2: last year. I'm probably about may or something or other.

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Speaker 2: I think it's dual listed here and on Nasdaq, and

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Speaker 2: it's a gaming group and it's got this Dragon Train game,

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Speaker 2: and it was in a court battle with Aristocrat Leisure

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Speaker 2: over it. Aristocrat had been granted an injunction against Light

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Speaker 2: and Wonders Dragon Train game that was upheld. As a result,

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Speaker 2: Wonders share price fell eighteen percent yesterday.

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Speaker 1: Not good goodness me, I've just learned something. I mean,

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Speaker 1: I learned a lot of things, but it's another thing

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Speaker 1: that I've learned. Immediately after the show, Sean, You've got

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Speaker 1: an interview coming up with Tim Steele, CEO of Class.

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Speaker 2: Yes. So we haven't already delved into the world of

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Speaker 2: self managed superannuation funds for a while, and so we

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Speaker 2: talked to Tim then recently. Class has recently done its

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Speaker 2: annual report on what's happening in that sector. We talked

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Speaker 2: to him about why there's such growth in self managed superfunds,

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Speaker 2: the demographic changes, who it is that are actually taking

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Speaker 2: on so many superfunds, plus the pros and cons of it.

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Speaker 1: It is coming up after the show, so stick around

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Speaker 1: for that one. It is a great chat. International markets.

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Speaker 1: What's happening?

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Speaker 2: The Central Bank of China yesterday announced a raft of

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Speaker 2: stimulus measures to support economic growth. There were changes to

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Speaker 2: reserve requirements for banks and cuts to existing home loan

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Speaker 2: interest rates. The People's Bank of China will also provide

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Speaker 2: funding to buy stocks. It comes after a briefing between

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Speaker 2: Chinese regulators and following data that shows home prices in

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Speaker 2: China have fallen by the most in ten years. Beijing's

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Speaker 2: targeting a five percent growth rate. Thus far in twenty

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Speaker 2: twenty four, the expansion is lagging somewhat. Yesterday's announcement wasn't

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Speaker 2: a big intervention, but it's certainly a pretty decent start.

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Speaker 2: The news of the intervention sent iron ore prices higher.

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Speaker 2: Oil prices crept higher, helped by the news out of China.

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Speaker 2: They've given what's going on in the Middle East, it's

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Speaker 2: probably surprising they're not for rising by more. The Aussie

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Speaker 2: dollar yesterday hit a new record for twenty twenty four,

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Speaker 2: surging after the release of the Reserve Board commentary and

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Speaker 2: that news out of China. It pushed beyond sixty eight

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Speaker 2: point six US since for the first time this year. Now.

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Speaker 2: Basically the reason it's the China news, but also US

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Speaker 2: interest rates are heading south ours a stable. That interest

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Speaker 2: rate differential makes investing in Australia relatively more attractive than

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Speaker 2: investing in the US. That's helping the Aussie dollar.

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Speaker 1: Okay, well we've got a fair but to get through today, Sean,

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Speaker 1: we'll be back in a moment with the rest of

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Speaker 1: the day's business news.

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Speaker 2: Shaw On.

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Speaker 1: The Federal government has called on Australians in Lebanon to leave,

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Speaker 1: with Foreign Minister Penny Wong saying she is deeply concerned

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Speaker 1: about the dramatic escalation intensions in the Middle East.

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Speaker 2: Set under one call for an end to the hostilities

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Speaker 2: and urged Australians and dual nationals and Lebanon to leave

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Speaker 2: the country while they can, and while commercial air flights

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Speaker 2: are still coming in and out of Lebanon. The crisis

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Speaker 2: is at a tipping point after a wave of Israeli

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Speaker 2: air strikes yesterday morning. They killed nearly five hundred people

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Speaker 2: and wounded more than sixteen hundred people and the deadliest

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Speaker 2: day of conflict since the two thousand and six Israel

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Speaker 2: has Bila War. The Israeli Defense Force launched more than

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Speaker 2: sixteen hundred strikes using cruise missiles, short range rockets and drones.

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Speaker 2: It triggered absolute chaos and Lebanon highways out of the

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Speaker 2: cities we jammed with cars. Families desperately tried to escape

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Speaker 2: the devastation across southern Lebanon. Now, Israel claims it has

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Speaker 2: evidence of hesbela weapons being hidden inside Lebanese homes that

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Speaker 2: prompted the attack. The bottom line is Senator Wan once

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Speaker 2: all Australians out of Lebanon if possible.

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Speaker 1: In Canberra, Shawn, the Prime Minister Anthony Abernezi said it

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Speaker 1: is no wonder people are angry at Colds and Wilworth

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Speaker 1: and they have a right to be.

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Speaker 2: He said customers who see a sign saying a product

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Speaker 2: is on special expects it to be cheaper, not more expensive.

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Speaker 2: The Australian Competition and Consumer Commission, of course, is alleged

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Speaker 2: that all Is in Coals misled customers on more than

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Speaker 2: two hundred products each by upping prices and then after

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Speaker 2: a short period of time, reducing them by a lesser

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Speaker 2: amount and claiming they were discounted. Mister Alberanezi said the

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Speaker 2: supermarkets will receive a bit more than a slap on

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Speaker 2: the wrist if the Australian Competition and Consumer Commission lawsuit

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Speaker 2: is successful. HBC chair Gena Cascodleeb said the regulator will

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Speaker 2: be seeking significant penalties.

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Speaker 1: The fallout Shawan from the PwC tax scandal continues, with

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Speaker 1: revenue for the firm down eight hundred and twenty million

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Speaker 1: dollars in the year to June.

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Speaker 2: Not bad, it's the worst slump on record, and TITAL

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Speaker 2: revenue last financial year came in at two point three

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Speaker 2: five billion dollars. It is now in third place in

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Speaker 2: revenue terms of the big four firms, behind Deloitte Australia

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Speaker 2: and e Y Australia. Very much a fall from grace

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Speaker 2: from the one time market leader. PWC's profit fell by

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Speaker 2: twenty four percent last financial year, but average partner income

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Speaker 2: only fell by thirteen percent. According to a story in

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Speaker 2: The Financial Review, average partner income at PwC is now

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Speaker 2: about seven hundred and sixty five one thousand dollars. This

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Speaker 2: compares to average partner income of eight hundred and fourteen

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Speaker 2: thousand dollars at EY, six hundred and fifty thousand KPMG

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Speaker 2: and around four hundred and seventy thousand at Deloitte. Last

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Speaker 2: year's tax scandal involved a former partner sharing with other

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Speaker 2: partners confidential details about federal tax changes designed to combat

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Speaker 2: multinational tax of word ands, so those partners and used

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Speaker 2: that information to win new clients. The release of that

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Speaker 2: information has certainly hurt PwC in terms of attracting customers online.

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Speaker 1: Luxury retailer Satire share price jumped almost eighty percent yesterday.

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Speaker 1: Sean that almost sounds like a typo, doesn't it? Eighty percent?

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Speaker 1: That is extraordinary. After the group's financial accounts for the

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Speaker 1: last financial year received order to sign off.

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Speaker 2: Grant Thornton provided an unqualified audit opinion after taking more

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Speaker 2: than three weeks to more thoroughly assess how Satire books revenue.

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Speaker 2: It followed media reports about how revenue including duties were collected.

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Speaker 2: Now the audit report said the firm assess the design

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Speaker 2: and implementation of relevant controls relating to how Satire recognized

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Speaker 2: his revenue, and also challenged management and an external expert

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Speaker 2: on the practice. The thing is said, our share price

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Speaker 2: has been volatile, to say the least. In March last

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Speaker 2: year was training not far off five dollars. It fell

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Speaker 2: to a dollar and five at the end of last month.

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Speaker 2: There's been a lot of speculation about its financial rigor.

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Speaker 2: Yesterday the order to came out and said, all is okay.

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Speaker 2: Suddenly we get the eighty or seventy eight, seventy nine

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Speaker 2: percent jump in its share price yesterday. Quite incredible. It

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Speaker 2: has more than doubled. Now that share price is more

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Speaker 2: than doubled in the past couple of weeks.

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Speaker 1: Yeah, that is extraordinary. Now David Foster has resigned from

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Speaker 1: the Bendigo and Adelaide Bank board months after stepping down

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Speaker 1: as chair of Star Entertainment.

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Speaker 2: Mister Foster has been under extreme pressure. I'd say he

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Speaker 2: was on leave of absence from the Bendigo board over

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Speaker 2: texts he sent while at Star to the chief executive

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Speaker 2: Robbie Cook, calling for the scrapping of the casino regue,

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Speaker 2: later in the removal of the manager controlling as Sydney

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Speaker 2: casino license at the time he was chair of Star,

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Speaker 2: and later he conceded he was trigger happy with the

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Speaker 2: text messages. Ultimately, mister Foster said Star was unfit to

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Speaker 2: regain its full unsupervised license and stepped down. He's been

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Speaker 2: on the Bendigo board since September twenty nineteen.

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Speaker 1: Just before we leave that story, Sean, where is the

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Speaker 1: Star up to? There's been so much talk about them.

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Speaker 1: It's just seem like a holding pattern, aren't we.

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Speaker 2: Yeah, we're all still waiting. Really. Shares haven't traded since

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Speaker 2: the end of last month, when the gaming group failed

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Speaker 2: to lodge its financial accounts. It's sought emergency funding, and

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Speaker 2: there have been a few stories in the media about

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Speaker 2: five point plans being designed to help the new CEO,

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Speaker 2: steveman Cann, turn the business around. Nothing official yet, fo okay.

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Speaker 1: Turning to international news, the International Monetary Fund is worried

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Speaker 1: about growing government debt and has called for developed nations

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Speaker 1: to bring deficits under control.

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Speaker 2: The outlook for public debt is worse than people think,

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Speaker 2: Jita Gopinath, the Fund's first Deputy Minuta director, said in

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Speaker 2: an interview with Wall Street Journal. While advanced economy successfully

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Speaker 2: navigated high debts in the past, they were helped by

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Speaker 2: a global savings gut that pushed down interest rates and

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Speaker 2: bond yields, Gopinath said, we are no longer in that

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Speaker 2: world anymore. We are seeing the impact of fiscal risks

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Speaker 2: and uncertainty on bond yields now. The IMF has nominated

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Speaker 2: France as an example of a country that needs to

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Speaker 2: tighten its fiscal policy.

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Speaker 1: Japanese fighter jets have fired warning flares against a Russian

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Speaker 1: military aircraft, The Tokyo said repeatedly entered the country's territorial airspace.

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Speaker 2: And Russian IL thirty eight military patrol aircraft entered Japanese

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Speaker 2: airspace three times near the northern ireland of her Cato

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Speaker 2: on Monday. According to the Japanese Defense Ministry, Japan scrambled

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Speaker 2: fighter jets to warn off the aircraft through radio messages

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Speaker 2: and fired flares during the final encroachment. According to report

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Speaker 2: on Reuter's it was the first use of flares by

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Speaker 2: the Japanese against an airborne intruder, and Japan has issued

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Speaker 2: a diplomatic protest against the incursions. Russian state media had

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Speaker 2: no immediate report on the incident, which came after Russian

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Speaker 2: and Chinese warships sailed together around Japan's northern coast. The

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Speaker 2: incursions also occurred on the same day that Japanese Prime

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Speaker 2: Minister Fumiyo Kashida met Ukrainian President Vladimir Zelenski in New York.

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Speaker 2: Russia and Japan have had a territorial dispute over Russian

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Speaker 2: held islands near Haikaido they originally seized from Japan in

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Speaker 2: the final days of World War II. Still a point

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Speaker 2: of contention between the two countries.

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Speaker 1: Last one Sean and this is one I mentioned at

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Speaker 1: the top of the show. US university rankings have been released,

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Speaker 1: and given that country houses the largest number of prestigious

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Speaker 1: learning institutions, the list is considered a bit of a bible.

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Speaker 1: Isn't it a potential cash windfall for universities?

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Speaker 2: Yeah? I like this story. The US News and World

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Speaker 2: Report puts Princeton at number one, again, followed by the

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Speaker 2: Massachusetts Institute of Technology MIT, then Harvard Stanford, then comes you,

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Speaker 2: tied at number six in Northwestern Johns Hopkins, Duke and

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Speaker 2: Caltech California Institute of Technology. That's okay. Even more interesting, though,

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Speaker 2: is the economics behind what's going on. US News hasn't

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Speaker 2: printed a magazine since twenty ten, but it kept up

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Speaker 2: the rankings, and now universities pay US News millions of

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Speaker 2: dollars each year in licensing fees to promote how they fared.

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Speaker 2: This is all according to report in the New York Times.

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Speaker 2: US News insists it's business relationships with schools do not

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Speaker 2: affect rankings, and its site attracts at least one hundred

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Speaker 2: million news is a year. I went on there. The

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Speaker 2: first have on their website is best Colleges. So clearly

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Speaker 2: the rankings are the big attraction now to students and

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Speaker 2: their parents. The rankings can be tools for narrowing college searchers.

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Speaker 2: Certainly status symbols surrounding admissions to certain schools. They can

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Speaker 2: literally be worth hundreds of millions of dollars to universities

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Speaker 2: if you take the full lifetime impact of the students

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Speaker 2: that go to those schools. Anyway, lots of controversy about them,

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Speaker 2: but Princeton comes in at number one.

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Speaker 1: Again, got a business model, isn't that great? Put out

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Speaker 1: a list and then people universities pay your fortune to

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Speaker 1: promote those results.

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Speaker 2: Yeah, it's a really fascinating it's a fascinating business model, definitely.

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Speaker 1: Now up next is the Fear and Greed Daily interview.

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Speaker 1: Tim Steele see of Class is your guest today.

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Speaker 2: All about self managed super funds, who's getting into them,

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Speaker 2: what their balances are, the pros and cons, all those

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Speaker 2: sorts of things.

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Speaker 1: Michael, it is coming up in the Fear and Greed

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Speaker 1: playlist on your podcast platform or at Fearandgreed dot com

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Speaker 1: at dot au, which is where you can sign up

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Speaker 1: for the weekly newsletter which comes out this morning. So

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Speaker 1: do it now without delay. Thank you very much, Sean.

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Speaker 2: Thanks Michael.

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Speaker 1: It is Wednesday, the twenty fifth of September twenty twenty four.

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Speaker 1: Make sure you're following the podcast and please join us

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Speaker 1: online on LinkedIn, Instagram, x TikTok and Facebook. I'm Michael

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Speaker 1: Thompson and that was fear and greed. Have a great day.