1 00:00:03,880 --> 00:00:06,720 Speaker 1: It's Friday, the twenty sixth of July twenty twenty four. 2 00:00:06,960 --> 00:00:09,680 Speaker 1: Welcome to the Fast five Business News by Fear and Greed, 3 00:00:09,680 --> 00:00:11,520 Speaker 1: where we give you the top five business stories you 4 00:00:11,600 --> 00:00:14,200 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:14,240 --> 00:00:17,520 Speaker 1: and good morning Sean Aylmer, Good morning, Michael Shaw. Me 6 00:00:17,600 --> 00:00:19,479 Speaker 1: have five big stories to get through today in just 7 00:00:19,520 --> 00:00:21,760 Speaker 1: five minutes, so we better get cracking story number one. 8 00:00:21,840 --> 00:00:25,720 Speaker 1: There are plenty of nervous investors in technology stocks today, 9 00:00:26,079 --> 00:00:29,200 Speaker 1: with big falls in major names like Tesla and Video 10 00:00:29,320 --> 00:00:33,879 Speaker 1: and Alphabet, raising questions about whether tech has peaked. 11 00:00:34,320 --> 00:00:37,720 Speaker 2: Earning reports from Alphabet pairent of Google and Tesla triggered 12 00:00:37,720 --> 00:00:40,919 Speaker 2: a slump in big tech stocks, with the masdak on 13 00:00:40,960 --> 00:00:44,160 Speaker 2: Wall Street down three point six percent, the biggest one 14 00:00:44,280 --> 00:00:47,160 Speaker 2: session drop in a couple of years. The big seven 15 00:00:47,240 --> 00:00:50,680 Speaker 2: tech stocks lost around one trillion dollars in value for 16 00:00:50,720 --> 00:00:53,720 Speaker 2: the session. The problem for the tech companies is they 17 00:00:53,760 --> 00:00:58,040 Speaker 2: are what investors called priced for perfection, meaning they are 18 00:00:58,120 --> 00:01:02,120 Speaker 2: so highly valued that a little disappointment can send share 19 00:01:02,120 --> 00:01:06,440 Speaker 2: prices tumbling. Tesla's Dune quarter earnings were down forty five percent, 20 00:01:06,520 --> 00:01:09,480 Speaker 2: its share price closed down twelve percent yesterday morning. It's 21 00:01:09,480 --> 00:01:11,679 Speaker 2: stop over eteen percent over the past month. Hardly a 22 00:01:11,720 --> 00:01:15,560 Speaker 2: crisis at Alphabet. Earnings and revenue expectations were better than expected, 23 00:01:15,600 --> 00:01:18,240 Speaker 2: but its share price fell more than five percent. Alphabet 24 00:01:18,280 --> 00:01:21,080 Speaker 2: investors are worried about profit margins. The share price of 25 00:01:21,160 --> 00:01:24,160 Speaker 2: Market Dalling and Video fell nearly seven percent as people 26 00:01:24,200 --> 00:01:27,440 Speaker 2: become just a little more skeptical around the promise of 27 00:01:27,560 --> 00:01:31,560 Speaker 2: riches from artificial intelligence. Those moves were reflected on the 28 00:01:31,560 --> 00:01:34,840 Speaker 2: local market yesterday with the tech stocks sold off. It 29 00:01:35,040 --> 00:01:37,720 Speaker 2: just demonstrates how fickle the market is at the moment. 30 00:01:37,840 --> 00:01:40,880 Speaker 1: Michael Sean, Can we say it? Can we say that 31 00:01:41,000 --> 00:01:41,920 Speaker 1: tech has peaked? 32 00:01:42,600 --> 00:01:44,640 Speaker 2: Probably a brave person to say that. I mean, we've 33 00:01:44,640 --> 00:01:46,480 Speaker 2: been predicting that for a couple of years now and 34 00:01:46,480 --> 00:01:49,120 Speaker 2: it hasn't happened. But the sixth largest companies on Wall 35 00:01:49,160 --> 00:01:52,720 Speaker 2: Street are all tech giants Microsoft, Apple and Video, Amazon, Meta, 36 00:01:52,880 --> 00:01:55,880 Speaker 2: and Alphabet. What's different now to the last couple of 37 00:01:56,040 --> 00:01:59,240 Speaker 2: years is that interest rates have started to fall. What's 38 00:01:59,280 --> 00:02:02,080 Speaker 2: different now to the last couple of weeks is that 39 00:02:02,280 --> 00:02:05,760 Speaker 2: many interest rate sensitive stocks like small caps are starting 40 00:02:05,800 --> 00:02:10,280 Speaker 2: to rise while the tech stocks are falling. The unbridled 41 00:02:10,400 --> 00:02:13,240 Speaker 2: enthusiasm for anything AI seems to have been tempered a 42 00:02:13,240 --> 00:02:16,639 Speaker 2: bit as well. That's working against companies like Nvidio and Microsoft. 43 00:02:16,840 --> 00:02:18,959 Speaker 2: I reckon there's a reality check going on, Michael. 44 00:02:19,480 --> 00:02:21,720 Speaker 1: I think he might be right. Sean story number two. 45 00:02:21,720 --> 00:02:25,079 Speaker 1: Prime Minister Anthony Albernezi will announce a cabinet reshuffle over 46 00:02:25,120 --> 00:02:28,680 Speaker 1: the weekend after two ministers resigned. And you know what, 47 00:02:29,080 --> 00:02:32,280 Speaker 1: he sounded just a tad like he might be electioneering. 48 00:02:33,000 --> 00:02:33,440 Speaker 1: I agree. 49 00:02:33,480 --> 00:02:36,160 Speaker 2: Linda Bernie and Brennan O'Connor will resign from Parliament at 50 00:02:36,160 --> 00:02:38,880 Speaker 2: the next election and step down from cabinet immediately. That 51 00:02:38,919 --> 00:02:41,840 Speaker 2: allows for a reshuffle, which the PM will announce over 52 00:02:41,919 --> 00:02:44,240 Speaker 2: the weekend. The sixty seven year old missus Bernie was 53 00:02:44,240 --> 00:02:46,200 Speaker 2: the first Indigenous woman to sit in the House of 54 00:02:46,240 --> 00:02:48,720 Speaker 2: Representatives the first to be a member of cabinet. Mister 55 00:02:48,800 --> 00:02:51,880 Speaker 2: Albeneasi years the announcement to highlight the government's stability, saying 56 00:02:51,880 --> 00:02:54,680 Speaker 2: no government in living memory has had the same cabinet 57 00:02:54,760 --> 00:02:58,440 Speaker 2: and ministerial positions for its first two years in office. 58 00:02:58,560 --> 00:03:00,280 Speaker 2: He went on to say that at the next election, 59 00:03:00,400 --> 00:03:02,360 Speaker 2: due by May next year, he will be seeking to 60 00:03:02,400 --> 00:03:04,520 Speaker 2: be the first Prime minister since John Howard in two 61 00:03:04,560 --> 00:03:07,160 Speaker 2: thousand and four to serve out a term and be 62 00:03:07,240 --> 00:03:08,240 Speaker 2: re elected. 63 00:03:08,680 --> 00:03:11,840 Speaker 1: Story number three. Bit of good news here Sean Quantas 64 00:03:11,880 --> 00:03:15,120 Speaker 1: has now cut prices six times this year and Virgin 65 00:03:15,160 --> 00:03:18,080 Speaker 1: Australia is averaging at least one fair sale a month. 66 00:03:18,240 --> 00:03:19,679 Speaker 1: According to Flight Center. 67 00:03:19,600 --> 00:03:22,240 Speaker 2: International fairs globally fell six percent in the first six 68 00:03:22,280 --> 00:03:24,760 Speaker 2: months of this year from a year earlier. Now Flight Center, 69 00:03:24,919 --> 00:03:26,959 Speaker 2: in a report released this week, said flights out of 70 00:03:26,960 --> 00:03:31,440 Speaker 2: Australia are thirteen percent cheaper, or fares to Indonesia, including Bali, 71 00:03:31,760 --> 00:03:35,120 Speaker 2: eighteen percent cheaper. Flight Center said prices will continue to 72 00:03:35,120 --> 00:03:37,680 Speaker 2: fall as the cost of living crisis makes consumers more 73 00:03:37,760 --> 00:03:41,880 Speaker 2: price sensitive. It's CEO James Kavner said, under pressure airlines 74 00:03:41,880 --> 00:03:45,240 Speaker 2: are seeking to fill planes months before departure times. Therefore 75 00:03:45,280 --> 00:03:47,600 Speaker 2: there are deals for early bookers. In fact, he was 76 00:03:47,640 --> 00:03:49,880 Speaker 2: talking about a ten day tour to China, including flights 77 00:03:49,880 --> 00:03:53,400 Speaker 2: and accommodation for less than one thousand bucks. Glower airfares 78 00:03:53,440 --> 00:03:56,200 Speaker 2: are a partial rebalancing of power from the post COVID 79 00:03:56,200 --> 00:03:59,760 Speaker 2: demand surge that gave airlines almost free reign to lift. 80 00:04:00,800 --> 00:04:03,520 Speaker 2: Now falling fares reflect the growing number of international fights 81 00:04:03,520 --> 00:04:05,720 Speaker 2: and offer also the fact that we're a little bit 82 00:04:05,720 --> 00:04:07,040 Speaker 2: more careful with our pennies. 83 00:04:07,400 --> 00:04:11,880 Speaker 1: Indeed we are last story no 'or not just the 84 00:04:11,920 --> 00:04:16,600 Speaker 1: fast for today. Indeed we are sure now story number four. 85 00:04:16,680 --> 00:04:19,720 Speaker 1: The chief executive of A and Z, Shane Elliott, and 86 00:04:19,960 --> 00:04:22,960 Speaker 1: other senior managers, are under a bit of pressure over 87 00:04:23,000 --> 00:04:27,160 Speaker 1: the misleading trading data submitted to the Commonwealth Government last year. 88 00:04:27,240 --> 00:04:30,160 Speaker 2: Miss Elliott yesterday said he had delivered a personal apology 89 00:04:30,200 --> 00:04:33,040 Speaker 2: for misleading the Australian Office of Financial Management about its 90 00:04:33,040 --> 00:04:35,599 Speaker 2: bond trading activity, with the bank now investigating whether it 91 00:04:35,600 --> 00:04:38,800 Speaker 2: should have reported the issue sooner. He said the bank's board, 92 00:04:39,040 --> 00:04:41,120 Speaker 2: chaired by a guy called Paul O'Sullivan, will lead a 93 00:04:41,160 --> 00:04:44,880 Speaker 2: process to ensure consequences we be applied to senior executives 94 00:04:45,040 --> 00:04:49,960 Speaker 2: both past and present, including himself. We're appropriate. Several employees 95 00:04:50,000 --> 00:04:52,200 Speaker 2: in the company's Sydney dealing room have been dismissed or 96 00:04:52,279 --> 00:04:55,520 Speaker 2: suspended now. Earlier in the month, the bank admitted that 97 00:04:55,560 --> 00:04:58,359 Speaker 2: its market division overstated the value of government bonds it 98 00:04:58,440 --> 00:05:02,240 Speaker 2: traded by more than fifty billion dollars that boosted its 99 00:05:02,240 --> 00:05:04,960 Speaker 2: prospects to win lucrative government mandates. 100 00:05:05,440 --> 00:05:08,880 Speaker 1: Last one, Story number five US President Joe Biden has 101 00:05:08,920 --> 00:05:11,400 Speaker 1: framed his decision to drop out of the twenty twenty 102 00:05:11,440 --> 00:05:14,640 Speaker 1: four race as a bid to unify the nation under 103 00:05:14,680 --> 00:05:16,400 Speaker 1: a new generation of leaders. 104 00:05:16,680 --> 00:05:19,520 Speaker 2: In his first speech since ending his re election campaign 105 00:05:19,560 --> 00:05:22,040 Speaker 2: and political career, mister Biden gave him eleven minute oval 106 00:05:22,080 --> 00:05:25,159 Speaker 2: offers address, saying and I quote, I have decided the 107 00:05:25,160 --> 00:05:27,040 Speaker 2: best way forward is to pass the torch to a 108 00:05:27,080 --> 00:05:30,039 Speaker 2: new generation. That's the best way to unite our nation. 109 00:05:30,720 --> 00:05:32,560 Speaker 2: End quote. He said it was a difficult choice, but 110 00:05:32,640 --> 00:05:35,200 Speaker 2: ultimately he needed to put aside his personal ambition. He 111 00:05:35,240 --> 00:05:37,560 Speaker 2: then went on to say, the great thing about America 112 00:05:37,680 --> 00:05:40,200 Speaker 2: is here. Kings and dictators do not rule the people do. 113 00:05:40,640 --> 00:05:43,280 Speaker 2: History is in your hands. The power is in your hands. 114 00:05:43,760 --> 00:05:45,800 Speaker 1: All right, there we go the top five business stories 115 00:05:45,839 --> 00:05:49,120 Speaker 1: in five minutes. Thank you, Sean, Thank you Michael. It's Friday, 116 00:05:49,200 --> 00:05:51,840 Speaker 1: the twenty sixth of July twenty twenty four. Remember to 117 00:05:51,880 --> 00:05:54,240 Speaker 1: hit follow on the podcast and in five minutes isn't enough. 118 00:05:54,279 --> 00:05:56,880 Speaker 1: You can find our longer daily show called Fear and 119 00:05:56,920 --> 00:05:59,919 Speaker 1: Greed wherever you listen to podcasts. I'm Michael Thompson and 120 00:05:59,920 --> 00:06:02,039 Speaker 1: that was the past five business news by Fear and Greed. 121 00:06:02,520 --> 00:06:05,360 Speaker 1: Have a great day.