1
00:00:06,280 --> 00:00:09,320
Speaker 1: Welcome to Fear and Greed business news you can use today.

2
00:00:09,360 --> 00:00:12,840
Speaker 1: The local share market wipes out ninety billion dollars as

3
00:00:12,920 --> 00:00:15,960
Speaker 1: oil prices head towards one hundred and twenty US dollars

4
00:00:15,960 --> 00:00:19,640
Speaker 1: a barrel, iron or stockpiles in China threatened the big

5
00:00:19,680 --> 00:00:23,160
Speaker 1: miners and the federal budget bottom line. And pawn sites

6
00:00:23,200 --> 00:00:26,040
Speaker 1: in Australia block local users on the back of new

7
00:00:26,120 --> 00:00:30,800
Speaker 1: age verification laws. Plus Commonwealth Bank reports two mortgage brokers

8
00:00:30,840 --> 00:00:33,559
Speaker 1: and several accountants to police over what could be a

9
00:00:33,680 --> 00:00:37,040
Speaker 1: one billion dollar fraud. And how the world is becoming

10
00:00:37,240 --> 00:00:40,440
Speaker 1: much more health conscious when it comes to alcohol. It

11
00:00:40,520 --> 00:00:43,760
Speaker 1: is Tuesday, the tenth of March twenty twenty six. I'm

12
00:00:43,760 --> 00:00:45,960
Speaker 1: Michael Thompson and good morning, Sean Aylmer.

13
00:00:47,200 --> 00:00:48,880
Speaker 2: Something for Everyone is today's show.

14
00:00:48,960 --> 00:00:54,720
Speaker 1: Michael, considering one of those things we mentioned was local

15
00:00:54,760 --> 00:00:55,440
Speaker 1: pawn sites.

16
00:00:55,800 --> 00:00:58,280
Speaker 2: Very unfearing greed, isn't it? It certainly is.

17
00:00:58,320 --> 00:01:00,520
Speaker 1: But there's a business angle to everything, sure on which

18
00:01:00,560 --> 00:01:02,480
Speaker 1: we will get to a little bit later. The main

19
00:01:02,560 --> 00:01:05,600
Speaker 1: story this morning, the price of oil has pushed through

20
00:01:05,640 --> 00:01:08,680
Speaker 1: one hundred and sixty US dollars a barrel yesterday one point,

21
00:01:08,680 --> 00:01:12,200
Speaker 1: wiping one hundred and thirty billion dollars in value from

22
00:01:12,200 --> 00:01:14,679
Speaker 1: the local share market, as spheres of a global economic

23
00:01:14,720 --> 00:01:18,960
Speaker 1: meltdown really hit investors. The s and PASX two hundred

24
00:01:19,319 --> 00:01:22,960
Speaker 1: closed down nearly three percent to eighty five hundred and

25
00:01:23,000 --> 00:01:26,400
Speaker 1: ninety nine points, having recovered somewhat in the afternoon sessions.

26
00:01:26,640 --> 00:01:29,680
Speaker 1: At its low, though the ASX two hundred was off

27
00:01:29,760 --> 00:01:33,440
Speaker 1: four point three percent. That is the steepest sell off

28
00:01:33,600 --> 00:01:37,440
Speaker 1: since the COVID nineteen pandemic in twenty twenty. It is

29
00:01:37,520 --> 00:01:41,160
Speaker 1: down now seven percent since the beginning of last week.

30
00:01:41,520 --> 00:01:45,600
Speaker 1: The tumble came as oil prices surged towards one hundred

31
00:01:45,640 --> 00:01:49,080
Speaker 1: and twenty US dollars a barrel, including a massive twenty

32
00:01:49,320 --> 00:01:53,960
Speaker 1: four percent jump yesterday alone. Brent krude is now trading

33
00:01:53,960 --> 00:01:56,720
Speaker 1: at almost double its level at the beginning of this year.

34
00:01:57,040 --> 00:02:00,840
Speaker 1: The immediate reason for this surge is obviously the attacks

35
00:02:00,920 --> 00:02:04,120
Speaker 1: and closures of oil refineries in the Middle East and

36
00:02:04,160 --> 00:02:06,800
Speaker 1: the closure of the Strait of Hull Moves, which carries,

37
00:02:06,840 --> 00:02:09,840
Speaker 1: as we've talked about before, Sean about twenty percent of

38
00:02:09,880 --> 00:02:11,200
Speaker 1: the world's oil.

39
00:02:11,360 --> 00:02:16,200
Speaker 2: We sure have very few winners. Yesterday the airlines Quantison

40
00:02:16,320 --> 00:02:19,720
Speaker 2: Virgin was sold off. They'll suffer from both higher fuel

41
00:02:19,800 --> 00:02:23,560
Speaker 2: prices and reticence for people to travel. The Tech index

42
00:02:23,639 --> 00:02:27,560
Speaker 2: fell nearly five percent, its decline in twenty twenty six

43
00:02:27,639 --> 00:02:30,399
Speaker 2: now eighteen percent. The banks were dumped on the back

44
00:02:30,400 --> 00:02:33,440
Speaker 2: of fears of an economic slowdown. Now lower growth leads

45
00:02:33,440 --> 00:02:36,320
Speaker 2: to more bad debts, weaker home and business landing markets

46
00:02:36,360 --> 00:02:38,399
Speaker 2: bad for the banks. The big four banks all lost

47
00:02:38,400 --> 00:02:41,080
Speaker 2: between two and three percent yesterday. The big miners were

48
00:02:41,080 --> 00:02:44,240
Speaker 2: hammered on global slowdown fears. A bit more going on

49
00:02:44,280 --> 00:02:46,200
Speaker 2: there within our and all miners. We'll talk about that

50
00:02:46,240 --> 00:02:50,920
Speaker 2: in a moment. One sector enjoying the meltdown energy companies,

51
00:02:51,000 --> 00:02:53,079
Speaker 2: and not just oil and gas, but the coal companies

52
00:02:53,080 --> 00:02:55,359
Speaker 2: as well, given the price of that commodity is up

53
00:02:55,400 --> 00:02:57,880
Speaker 2: thirty percent since the beginning of the year. Yen Cole

54
00:02:57,960 --> 00:03:00,680
Speaker 2: share price was up thirteen percent yes day. White Haven

55
00:03:00,680 --> 00:03:03,600
Speaker 2: and New Hope were also among the best performers, but

56
00:03:03,800 --> 00:03:07,160
Speaker 2: all in all a horror day for the share market.

57
00:03:07,320 --> 00:03:10,240
Speaker 1: It was absolutely brutal. And it wasn't just Australia, was it.

58
00:03:10,320 --> 00:03:14,600
Speaker 1: Markets across the region were also sold off. Japan's benchmark

59
00:03:14,680 --> 00:03:17,320
Speaker 1: Nikket fell more than was it more than seven percent.

60
00:03:17,440 --> 00:03:18,919
Speaker 1: Hong Kong was down three percent.

61
00:03:19,400 --> 00:03:21,840
Speaker 2: Yeah, the cats South Korean market tumbled eight percent. That

62
00:03:21,880 --> 00:03:24,480
Speaker 2: triggered a twenty minute trading halt in that market for

63
00:03:24,560 --> 00:03:27,600
Speaker 2: investors to catch their breath, while analyst are calling it

64
00:03:27,639 --> 00:03:31,160
Speaker 2: the biggest oil shocks since the nineteen seventies. Major economies,

65
00:03:31,200 --> 00:03:34,080
Speaker 2: of course a much less reliant on oil for energy

66
00:03:34,360 --> 00:03:37,480
Speaker 2: given the rise of renewables. Also, it's just oil isn't

67
00:03:37,480 --> 00:03:40,240
Speaker 2: as big a part of their GDP, so it's not

68
00:03:40,400 --> 00:03:44,200
Speaker 2: quite comparable. But still the surgeon oil price has a

69
00:03:44,240 --> 00:03:47,600
Speaker 2: detrimental impact on global economic growth. The rule of farm

70
00:03:47,880 --> 00:03:49,600
Speaker 2: used to be, and used to be because I went to

71
00:03:49,680 --> 00:03:52,400
Speaker 2: university long time ago. But a ten dollars increase per

72
00:03:52,520 --> 00:03:57,960
Speaker 2: barrel reduces global economic activities an increase in ten bucks

73
00:03:58,160 --> 00:04:00,640
Speaker 2: by aboutzero point one percent, a little bit more than

74
00:04:00,680 --> 00:04:04,400
Speaker 2: point one percent. So when you get a thirty dollars

75
00:04:04,400 --> 00:04:07,520
Speaker 2: an increase yesterday, that's point three percent point four percent

76
00:04:07,560 --> 00:04:09,680
Speaker 2: by the time you add it all up, and that

77
00:04:09,840 --> 00:04:13,840
Speaker 2: is a substantial difference to economic growth globally.

78
00:04:13,920 --> 00:04:17,040
Speaker 1: Indeed, and to happen so quickly as well, that this

79
00:04:17,080 --> 00:04:20,640
Speaker 1: isn't a gradual increase. This is a short, sharp jump.

80
00:04:20,760 --> 00:04:23,440
Speaker 1: It's incredible, and it's going to have a big economic

81
00:04:23,520 --> 00:04:27,160
Speaker 1: impact on Australia. At National Australia Bank has raised its

82
00:04:27,160 --> 00:04:31,919
Speaker 1: forecast for both headlining headline and underlying inflation following the

83
00:04:31,960 --> 00:04:35,919
Speaker 1: oil supply shocks. The bank thinks headline inflation could peak

84
00:04:35,960 --> 00:04:39,480
Speaker 1: around five percent next quarter, with core inflation heading towards

85
00:04:39,560 --> 00:04:43,640
Speaker 1: four percent. The good news, though, according to NAB, is

86
00:04:43,640 --> 00:04:46,160
Speaker 1: that the RBA will consider the spike in oil prices

87
00:04:46,160 --> 00:04:50,520
Speaker 1: and inflation as temporary, so it might not actually shift

88
00:04:50,960 --> 00:04:54,720
Speaker 1: course on interest rates. NAB expects a rate hike in May.

89
00:04:55,560 --> 00:04:58,480
Speaker 2: But Michael, if you really want to understand the economy,

90
00:04:58,640 --> 00:05:00,640
Speaker 2: surely you know where you've got to go. So the

91
00:05:00,760 --> 00:05:05,440
Speaker 2: bomb market, yes, yes, Local ten year yields hit their

92
00:05:05,520 --> 00:05:10,360
Speaker 2: highest level since twenty eleven yesterday. That suggests traders think

93
00:05:10,440 --> 00:05:13,760
Speaker 2: interest rates are definitely going to be much much higher

94
00:05:14,240 --> 00:05:17,840
Speaker 2: over the next decade or so. Not good used, really.

95
00:05:17,880 --> 00:05:20,520
Speaker 2: The Aussie dollar was sold off, falling back below seventy

96
00:05:20,920 --> 00:05:23,680
Speaker 2: US since that'says investors headed for safety. Nothing quite as

97
00:05:23,680 --> 00:05:28,920
Speaker 2: safe as US dollars according to investors. So the economic

98
00:05:28,920 --> 00:05:31,400
Speaker 2: outlook well, I mean, you know, look, it's twenty four

99
00:05:31,440 --> 00:05:35,559
Speaker 2: hours into this spike, so let's not call it too soon,

100
00:05:36,480 --> 00:05:39,400
Speaker 2: but you would not want oil prices to hang around

101
00:05:39,440 --> 00:05:40,880
Speaker 2: these levels for too long.

102
00:05:43,279 --> 00:05:45,880
Speaker 1: We've kind of parked the oil shock to one side

103
00:05:45,880 --> 00:05:49,520
Speaker 1: for a minute. The geopolitical crisis is continuing. Iran has

104
00:05:49,560 --> 00:05:53,680
Speaker 1: appointed Muchitaba hamone who is the son of the late

105
00:05:53,800 --> 00:05:58,119
Speaker 1: Ali HAMONEI, as the new Supreme Leader. US President Donald

106
00:05:58,120 --> 00:06:01,440
Speaker 1: Trump has previously said that he should have a say

107
00:06:01,839 --> 00:06:04,200
Speaker 1: in who leads Iran and has said that the new

108
00:06:04,240 --> 00:06:06,120
Speaker 1: leader is unacceptable to him.

109
00:06:06,560 --> 00:06:09,800
Speaker 2: Yes, so he was speaking before he was actually given

110
00:06:09,960 --> 00:06:14,039
Speaker 2: the gig. The younger Hamanae, aged fifty six, has for

111
00:06:14,160 --> 00:06:17,520
Speaker 2: years been close to the Islamic Revolutionary Guard Corps and

112
00:06:17,800 --> 00:06:20,960
Speaker 2: Iran's intelligence apparatus. His rise to the highest political and

113
00:06:21,000 --> 00:06:24,080
Speaker 2: religious office in the country, which is actually a lifetime appointment,

114
00:06:24,600 --> 00:06:29,039
Speaker 2: probably signals a continued hardline regime in the country. Other analysts,

115
00:06:29,040 --> 00:06:31,560
Speaker 2: they've said, well, he's only fifty six, and he won't

116
00:06:31,560 --> 00:06:34,040
Speaker 2: be as hardlined as his father because of his age.

117
00:06:34,240 --> 00:06:37,400
Speaker 2: So maybe he is someone who could carry the clerics

118
00:06:37,400 --> 00:06:40,600
Speaker 2: and the older clerics along with the moderates. We'll have

119
00:06:40,680 --> 00:06:42,640
Speaker 2: to wait and see on that. For fighting and attacks

120
00:06:42,680 --> 00:06:45,040
Speaker 2: in the region continued to escalate, with the US state

121
00:06:45,040 --> 00:06:49,040
Speaker 2: Department now ordering diplomats out of Saudi Arabia. Iran's already

122
00:06:49,040 --> 00:06:53,240
Speaker 2: targeted US embusis and compounds in Kuwait, the UAE and Saudi.

123
00:06:53,520 --> 00:06:55,960
Speaker 1: I'll give a quick mention Sean of Fear and Greed

124
00:06:56,040 --> 00:06:58,560
Speaker 1: Q and A which comes up after the show. Someone

125
00:06:58,600 --> 00:07:04,240
Speaker 1: who always has a really interesting and credible take on markets,

126
00:07:04,600 --> 00:07:05,719
Speaker 1: Shane Oliver from AMP.

127
00:07:06,400 --> 00:07:07,919
Speaker 2: Yeah, we have a great chat to him about what

128
00:07:07,960 --> 00:07:10,480
Speaker 2: all this means in why oil prices are spiking. He

129
00:07:10,520 --> 00:07:14,040
Speaker 2: puts in puts it into a historical perspective, as Shane

130
00:07:14,120 --> 00:07:17,000
Speaker 2: is wont to do, and it just really does kind

131
00:07:17,000 --> 00:07:20,360
Speaker 2: of put I suppose some parameters around how you should

132
00:07:20,400 --> 00:07:22,840
Speaker 2: think about this, which is great. What it means for markets,

133
00:07:22,840 --> 00:07:24,920
Speaker 2: what it means for the economy. Doesn't want to be

134
00:07:25,000 --> 00:07:27,240
Speaker 2: the reserve bank at the moment, he said. It's a

135
00:07:27,240 --> 00:07:27,720
Speaker 2: great chat.

136
00:07:27,800 --> 00:07:29,200
Speaker 1: Yeah, no, it's a good one. It's coming up after

137
00:07:29,240 --> 00:07:31,240
Speaker 1: the show. Lots more still to come though, Sean. We'll

138
00:07:31,280 --> 00:07:32,520
Speaker 1: be back in a moment with the rest of the

139
00:07:32,560 --> 00:07:34,440
Speaker 1: day's business news.

140
00:07:40,880 --> 00:07:41,160
Speaker 3: Sean.

141
00:07:41,280 --> 00:07:44,760
Speaker 1: Stockpiles of iron ore in China have hit record levels,

142
00:07:44,840 --> 00:07:48,440
Speaker 1: up twenty five percents into August, and that puts pressure

143
00:07:48,480 --> 00:07:51,679
Speaker 1: on Australia's big miners and also on the budget bottom line.

144
00:07:52,080 --> 00:07:54,640
Speaker 2: So there's one hundred and sixty three point three million

145
00:07:54,720 --> 00:07:57,640
Speaker 2: tons of iron ooral waiting processing in China.

146
00:07:57,920 --> 00:08:00,640
Speaker 1: Wow, that is a lot, huge amount.

147
00:08:01,040 --> 00:08:03,680
Speaker 2: Yeah, I mean I was a key ingredient for making steel.

148
00:08:04,040 --> 00:08:06,760
Speaker 2: Steel's using the property sector. The property sector has slowed down.

149
00:08:06,920 --> 00:08:10,280
Speaker 2: Hence you got all this stockpile sitting there now. BAGP

150
00:08:10,400 --> 00:08:12,520
Speaker 2: share price tumbled late last week when it emerged that

151
00:08:12,560 --> 00:08:15,760
Speaker 2: a major Chinese buyer wasn't buying some shipments from the

152
00:08:15,760 --> 00:08:20,240
Speaker 2: big Australian at least temporarily while price negotiations continue. That

153
00:08:20,280 --> 00:08:23,160
Speaker 2: can that went on yesterday. BEAGP share price tumbled more

154
00:08:23,200 --> 00:08:26,360
Speaker 2: than five percent. Rio Tinto was off more than four percent.

155
00:08:26,400 --> 00:08:29,440
Speaker 2: Forty s few medals down nearly two percent. Ozzie minus

156
00:08:29,440 --> 00:08:31,720
Speaker 2: exported a title of nine hundred and fifteen million tons

157
00:08:31,720 --> 00:08:33,600
Speaker 2: of iron ore last year. That's what about one hundred

158
00:08:33,600 --> 00:08:36,760
Speaker 2: and fifteen billion dollars. Obviously great for the miners. Also

159
00:08:36,880 --> 00:08:40,559
Speaker 2: good for state and federal government coffers because they receive

160
00:08:40,640 --> 00:08:43,480
Speaker 2: royalties and taxes from those sales. A ten percent fall

161
00:08:43,520 --> 00:08:46,680
Speaker 2: in the price of iron ore equates to a loss

162
00:08:46,720 --> 00:08:50,880
Speaker 2: of about four hundred million dollars in federal corporate tax receipts.

163
00:08:51,120 --> 00:08:53,679
Speaker 2: So if there's this big stockpile price of iron or

164
00:08:53,720 --> 00:08:57,280
Speaker 2: fall to twenty percent twenty five percent, that's a billion

165
00:08:57,320 --> 00:09:01,400
Speaker 2: dollar loss to the bottom line for the budget WA treasury.

166
00:09:01,480 --> 00:09:04,760
Speaker 2: So Western Australia is the other government which earns most

167
00:09:05,200 --> 00:09:09,480
Speaker 2: from iron ore. It estimates that every one dollar increase

168
00:09:10,240 --> 00:09:12,280
Speaker 2: in the price of iron ore as about ninety four

169
00:09:12,320 --> 00:09:15,360
Speaker 2: million dollars to the state's iron ore royalties. So like

170
00:09:15,600 --> 00:09:19,880
Speaker 2: ten million dollar drop, there nine hundred and forty million

171
00:09:19,920 --> 00:09:22,199
Speaker 2: dollars drop in iron or royalties.

172
00:09:22,880 --> 00:09:25,679
Speaker 1: Just while on the budget, the federal budget, that is,

173
00:09:25,720 --> 00:09:30,400
Speaker 1: the Albanesi government is considering spending billions of dollars extra

174
00:09:30,880 --> 00:09:34,199
Speaker 1: in defense funding mid pressure on the budgets finances.

175
00:09:34,679 --> 00:09:36,640
Speaker 2: Yes, so the defense budget, it's already seven hundred and

176
00:09:36,679 --> 00:09:38,880
Speaker 2: sixty five billion dollars over ten years. The US is

177
00:09:38,920 --> 00:09:42,400
Speaker 2: putting pressure on Western economies to up their defense spending.

178
00:09:42,840 --> 00:09:45,400
Speaker 2: The fin Review is reporting that Treasury Jim Talmas is

179
00:09:45,440 --> 00:09:48,559
Speaker 2: considering spending billions of dollars more in both new and

180
00:09:48,679 --> 00:09:53,359
Speaker 2: reprioritized funds. And the Middle East conflict obviously has highlighted

181
00:09:53,400 --> 00:09:56,560
Speaker 2: the need to beef up capabilities in certain areas, particularly

182
00:09:56,559 --> 00:09:58,080
Speaker 2: like anti drone technology.

183
00:09:58,600 --> 00:10:03,200
Speaker 1: Okay, Commonwealth Bank SEAN has referred to mortgage brokers and

184
00:10:03,240 --> 00:10:05,720
Speaker 1: a string of accountants to police over what could be

185
00:10:05,960 --> 00:10:07,960
Speaker 1: a billion dollar loan fraud.

186
00:10:08,640 --> 00:10:11,440
Speaker 2: So the AFAR first reported in February that Commonwealth Bank

187
00:10:11,440 --> 00:10:15,240
Speaker 2: had uncovered a cluster of home loans obtained using fake documents,

188
00:10:15,240 --> 00:10:19,680
Speaker 2: including income statements generated with artificial intelligence, draft tax returns,

189
00:10:20,160 --> 00:10:23,439
Speaker 2: shell companies. The bank's now working with the New South

190
00:10:23,480 --> 00:10:27,400
Speaker 2: Wales Police, ASSEK, the corporate regulator, and os TRAK to

191
00:10:27,800 --> 00:10:31,160
Speaker 2: unravel what's gone on. How did it work?

192
00:10:31,240 --> 00:10:31,520
Speaker 3: Though?

193
00:10:32,720 --> 00:10:36,440
Speaker 1: Well, like I just I'm looking at the clock going

194
00:10:36,720 --> 00:10:37,600
Speaker 1: can I ask you this?

195
00:10:37,840 --> 00:10:38,040
Speaker 2: Yes?

196
00:10:38,080 --> 00:10:39,719
Speaker 1: I have to because I'm really curious.

197
00:10:39,920 --> 00:10:42,319
Speaker 2: So it looks like it looks like well, the allegations

198
00:10:42,360 --> 00:10:46,319
Speaker 2: are that loans are obtained via komwalf Bank's refer A program. Basically,

199
00:10:46,400 --> 00:10:49,600
Speaker 2: we refer A program pays accountants, real estate agents, lawyers

200
00:10:49,600 --> 00:10:53,280
Speaker 2: a commission for sending customers to the bank or via

201
00:10:53,480 --> 00:10:56,640
Speaker 2: third party mortgage brokers, which again get a commission for

202
00:10:56,840 --> 00:11:01,800
Speaker 2: taking taking home loans with a bank. Now it's always

203
00:11:01,800 --> 00:11:04,720
Speaker 2: been controversial refer a program is national Australia Bank, for example,

204
00:11:04,800 --> 00:11:08,600
Speaker 2: have dropped THEIRS. Comra Bank definitely has not. Accounts were

205
00:11:08,600 --> 00:11:13,760
Speaker 2: allegedly inflating clients' finances with fake income statements, then collecting

206
00:11:13,760 --> 00:11:17,559
Speaker 2: commissions through the bank's refer a program. Asset Commissioner Kate

207
00:11:17,600 --> 00:11:20,760
Speaker 2: O'Rourke late last week said that other major lenders have

208
00:11:20,840 --> 00:11:25,480
Speaker 2: reported similar issues. Now new only anti money laundering rules

209
00:11:25,679 --> 00:11:30,080
Speaker 2: that will cover accountants, lawyers and conveyances kick in next month.

210
00:11:30,679 --> 00:11:33,360
Speaker 2: But until now it's almost like there's been a loophole

211
00:11:33,360 --> 00:11:34,559
Speaker 2: that's allowed this to happen.

212
00:11:34,960 --> 00:11:38,280
Speaker 1: That's extraordinary. I'm glad you took the extra time to

213
00:11:38,320 --> 00:11:42,160
Speaker 1: explain that one sure, it is a fascinating story. It

214
00:11:42,200 --> 00:11:47,600
Speaker 1: is time to talk about adult websites sean Australia's strict

215
00:11:47,760 --> 00:11:52,120
Speaker 1: social media laws capturing not only children but adults as well,

216
00:11:52,160 --> 00:11:57,000
Speaker 1: with the global pornography site Pornhub blocking users in Australia.

217
00:11:57,040 --> 00:11:59,520
Speaker 1: Because of age verification.

218
00:11:59,640 --> 00:12:03,559
Speaker 2: From yesterday and a new E safety rules, any platform

219
00:12:03,640 --> 00:12:08,440
Speaker 2: hosting potography, are rated video games or explicit AI chatbots

220
00:12:09,000 --> 00:12:12,480
Speaker 2: must verify that users are over eighteen. Now the Finance

221
00:12:12,480 --> 00:12:13,959
Speaker 2: for non compliance for up to forty nine and a

222
00:12:13,960 --> 00:12:17,800
Speaker 2: half million dollars per breach. Porn Humm's parent company a

223
00:12:17,960 --> 00:12:22,840
Speaker 2: loo AyL Alo has decided that rather than build an

224
00:12:22,840 --> 00:12:27,560
Speaker 2: age verification system, is just going to block all Australian users.

225
00:12:27,720 --> 00:12:31,440
Speaker 2: Other sites are doing the same. And I mean what

226
00:12:31,440 --> 00:12:33,680
Speaker 2: it means is the social media band front of sixteen

227
00:12:33,720 --> 00:12:36,160
Speaker 2: year olds and the age verification came in last December.

228
00:12:36,840 --> 00:12:40,840
Speaker 2: This is now pushed to over eighteen sites. It's just

229
00:12:40,880 --> 00:12:42,680
Speaker 2: too hard for some of these guys to actually do it,

230
00:12:42,679 --> 00:12:46,920
Speaker 2: so they're just going to block users in Australia. The

231
00:12:46,960 --> 00:12:51,000
Speaker 2: E Safety Commissioner Julie Inman Grand says the rules also

232
00:12:51,040 --> 00:12:55,679
Speaker 2: apply to search engines, app stores and AI companion chatbots.

233
00:12:56,440 --> 00:13:00,280
Speaker 2: We've got through that story for you, and I really

234
00:13:00,360 --> 00:13:04,640
Speaker 2: quite sensibly without turning into fourteen year old school.

235
00:13:04,360 --> 00:13:08,000
Speaker 1: Boys without giggling once, Sean, I think we've turned over

236
00:13:08,040 --> 00:13:09,360
Speaker 1: a new, more mature leaf.

237
00:13:09,559 --> 00:13:11,240
Speaker 2: I've don't think so. A few times I was about

238
00:13:11,280 --> 00:13:13,560
Speaker 2: to say things and then I stopped myself, like anyone

239
00:13:13,640 --> 00:13:17,680
Speaker 2: use that expression because of the double entendrel.

240
00:13:17,480 --> 00:13:21,120
Speaker 1: Yes, it was hard, all right. Turning to international news now, Sean,

241
00:13:22,240 --> 00:13:27,439
Speaker 1: only fifty four percent of Americans consumed alcohol last year.

242
00:13:27,480 --> 00:13:30,600
Speaker 1: These are the lowest figures since Gallop surveys began in

243
00:13:30,760 --> 00:13:35,400
Speaker 1: nineteen thirty two. As rising health consciousness, weight loss drugs,

244
00:13:35,480 --> 00:13:38,960
Speaker 1: the rise of non alcoholic drinks, and really tightening budgets

245
00:13:39,000 --> 00:13:42,320
Speaker 1: as well all conspired to reduce the number of people

246
00:13:42,320 --> 00:13:47,079
Speaker 1: that are imbibing even casually. Really, it's a global phenomenon.

247
00:13:47,520 --> 00:13:51,840
Speaker 1: Global wine sales fell twelve percent between twenty twenty and

248
00:13:51,840 --> 00:13:54,680
Speaker 1: twenty twenty four and at their lowest rates in sixty years.

249
00:13:54,960 --> 00:13:57,880
Speaker 1: A recent survey also showed that twenty percent of French

250
00:13:57,920 --> 00:14:02,920
Speaker 1: vineyards are considering they're considering shutting this according to The

251
00:14:02,920 --> 00:14:07,920
Speaker 1: Morning Brewne News latter actually just like doar upstore, what's

252
00:14:07,920 --> 00:14:09,880
Speaker 1: the same? Would you just pull up? I don't know

253
00:14:09,920 --> 00:14:12,400
Speaker 1: what the shuttering a vineyard?

254
00:14:12,440 --> 00:14:16,200
Speaker 2: Do you vinyard? Hang up your vines? Yeah, let them

255
00:14:16,240 --> 00:14:18,040
Speaker 2: go to seed or something or other. I don't know.

256
00:14:18,240 --> 00:14:20,280
Speaker 2: I mean Treasury Weiner States has really felt this here.

257
00:14:20,280 --> 00:14:22,160
Speaker 2: It's one of the worst performing companies over the last

258
00:14:22,440 --> 00:14:24,800
Speaker 2: twelve or fourteen months the list of stock and this

259
00:14:24,880 --> 00:14:28,080
Speaker 2: is on the back of this. Jim Beam paused distillation

260
00:14:28,200 --> 00:14:31,240
Speaker 2: for a year at his flagship facility in Kentucky amid

261
00:14:31,280 --> 00:14:34,720
Speaker 2: a global bourbon blood Heineken said it's cutting six thousand

262
00:14:34,800 --> 00:14:37,240
Speaker 2: jobs after selling less Bier in twenty twenty five. In

263
00:14:37,280 --> 00:14:41,280
Speaker 2: the previous year, sales for the British spirits maker Diagio,

264
00:14:41,400 --> 00:14:45,280
Speaker 2: which owns Guinness, Smirnoff and Johnny Walker for almost three

265
00:14:45,360 --> 00:14:48,280
Speaker 2: percent in the first half of this fiscal year. Do

266
00:14:48,320 --> 00:14:49,880
Speaker 2: you know how we can blame here, Michael?

267
00:14:51,240 --> 00:14:52,680
Speaker 1: Is it young people shine?

268
00:14:52,760 --> 00:14:56,040
Speaker 2: Yes, jen zetas those under the age of thirty five,

269
00:14:56,320 --> 00:14:59,360
Speaker 2: they drink way less than middle and old raged adults.

270
00:14:59,360 --> 00:15:02,360
Speaker 2: According to UP, they don't meet up as much, which

271
00:15:02,360 --> 00:15:04,400
Speaker 2: I thought. So this is a social media issue and

272
00:15:04,480 --> 00:15:08,640
Speaker 2: telecommunications issue. If we were to meet someone, maybe not you, Mike,

273
00:15:08,800 --> 00:15:12,840
Speaker 2: but certainly me and my late teens and twenties, you'd

274
00:15:12,840 --> 00:15:16,240
Speaker 2: meet at the pub because then you decide what to do.

275
00:15:16,320 --> 00:15:18,560
Speaker 2: But social media allows you to make all those decisions

276
00:15:18,600 --> 00:15:21,480
Speaker 2: and to communicate and have relationships and stuff like that

277
00:15:21,680 --> 00:15:26,760
Speaker 2: without actually meeting people, and that's impacting pub sales and

278
00:15:26,800 --> 00:15:31,120
Speaker 2: stuff like that. Also, marijuana is increasingly becoming legal in

279
00:15:31,400 --> 00:15:34,760
Speaker 2: states around the US and countries broadly, and that may

280
00:15:34,840 --> 00:15:38,640
Speaker 2: also have a reason because marijuana usage doesn't tend to

281
00:15:38,680 --> 00:15:40,360
Speaker 2: go with excessive drinking. That's right.

282
00:15:40,800 --> 00:15:45,840
Speaker 1: The term California sober, which I had not heard before

283
00:15:45,880 --> 00:15:46,240
Speaker 1: into a.

284
00:15:46,200 --> 00:15:48,680
Speaker 2: Calling about it until that's actually the phrase they're using.

285
00:15:48,760 --> 00:15:52,880
Speaker 1: Yeah, yeah, yeah, it's a fascinating phenomenon. And there we go.

286
00:15:53,640 --> 00:15:53,960
Speaker 3: Sean.

287
00:15:54,120 --> 00:15:56,800
Speaker 1: This is normally where we would part ways, we would

288
00:15:56,800 --> 00:15:59,960
Speaker 1: normally say goodbye here. This month is slightly different because

289
00:16:00,120 --> 00:16:02,160
Speaker 1: a couple of times a week we've got something a

290
00:16:02,160 --> 00:16:03,000
Speaker 1: little bit special.

291
00:16:03,480 --> 00:16:05,760
Speaker 2: Yes we do, Michael, I think you'll enjoy this one.

292
00:16:06,200 --> 00:16:09,600
Speaker 2: It's the Fear and Greeds Accelerated Series with air Wallacks,

293
00:16:09,920 --> 00:16:12,200
Speaker 2: where we explore what it takes for businesses to grow

294
00:16:12,240 --> 00:16:14,520
Speaker 2: with our borders, kind of the whole concept of why

295
00:16:14,640 --> 00:16:17,400
Speaker 2: having a what next mindset actually can be to your

296
00:16:17,440 --> 00:16:22,360
Speaker 2: competitive advantage. Justin Hales is a founder and CEO of Camplify,

297
00:16:22,480 --> 00:16:27,680
Speaker 2: Australia's largest motor home and caravan sharing marketplace. A customer

298
00:16:27,680 --> 00:16:29,840
Speaker 2: of air Wallacks, in fact, he uses its Payments for

299
00:16:29,920 --> 00:16:34,800
Speaker 2: Platforms solution to power integrated car payments and payouts as

300
00:16:34,880 --> 00:16:39,840
Speaker 2: Camplifies sales or scales itself across Australia, the UK and Europe. Justin,

301
00:16:40,400 --> 00:16:42,360
Speaker 2: welcome to Fear and Greeds Accelerated Series.

302
00:16:42,800 --> 00:16:45,160
Speaker 3: Yeah, thanks having me, Sean. Excited to be on the

303
00:16:45,200 --> 00:16:45,840
Speaker 3: podcast with you.

304
00:16:46,120 --> 00:16:49,560
Speaker 2: Now you're doing camping differently, connecting owners and hires of

305
00:16:49,680 --> 00:16:53,200
Speaker 2: camper vans, motor homes, caravans, et cetera. Always thinking about

306
00:16:53,200 --> 00:16:56,480
Speaker 2: what's next is a competitive advantage in a highly competitive

307
00:16:56,520 --> 00:16:59,840
Speaker 2: marketplace like yours. What does that actually look like in

308
00:17:00,080 --> 00:17:02,720
Speaker 2: practice inside your organization?

309
00:17:03,440 --> 00:17:06,320
Speaker 3: Yeah, Look, I think we're very much focused on what

310
00:17:06,359 --> 00:17:10,280
Speaker 3: are the barriers for the customer, so actually understanding both

311
00:17:10,400 --> 00:17:13,159
Speaker 3: sides of the marketplace. The higher are the owner and

312
00:17:13,320 --> 00:17:15,800
Speaker 3: what makes them tick? What are the things that actually

313
00:17:15,960 --> 00:17:19,800
Speaker 3: help them to connect together to solve that problem that

314
00:17:19,800 --> 00:17:22,679
Speaker 3: we're looking to solve, to get more people out on

315
00:17:22,720 --> 00:17:26,360
Speaker 3: the road camping and to be able to really make

316
00:17:26,400 --> 00:17:28,560
Speaker 3: it a better product for the customers. So we do

317
00:17:29,400 --> 00:17:35,000
Speaker 3: lots of user acceptance testing, lots of user journey understanding

318
00:17:35,040 --> 00:17:38,040
Speaker 3: so that we can see, Okay, this is a problem, now,

319
00:17:38,119 --> 00:17:41,080
Speaker 3: how do we actually try and solve that for the customer? Ok?

320
00:17:41,520 --> 00:17:43,720
Speaker 2: And is that kind of the kind of the north

321
00:17:43,840 --> 00:17:46,520
Speaker 2: star when you're within your team and you know it's

322
00:17:46,520 --> 00:17:49,359
Speaker 2: hard sometimes when you're trying to kind of do the

323
00:17:49,440 --> 00:17:51,280
Speaker 2: right thing about the customer, but there's also business as

324
00:17:51,320 --> 00:17:53,720
Speaker 2: usual going on in the background there. But is that

325
00:17:53,840 --> 00:17:55,280
Speaker 2: the north Star just always improve?

326
00:17:55,720 --> 00:17:58,440
Speaker 3: Yeah, Look, I think it's it always is a challenge

327
00:17:58,480 --> 00:18:01,840
Speaker 3: because you know, you're trying to grow, you're trying to

328
00:18:01,920 --> 00:18:04,960
Speaker 3: maintain what you've got, you're trying to give good quality service,

329
00:18:05,000 --> 00:18:09,560
Speaker 3: You're trying to provide a certain level of expectation with

330
00:18:09,600 --> 00:18:13,640
Speaker 3: your staff, etc. But certainly I think we've tried to

331
00:18:13,840 --> 00:18:17,440
Speaker 3: ingrain that with the team, to look for those things

332
00:18:18,000 --> 00:18:20,720
Speaker 3: that can be improved and to not let them go,

333
00:18:21,040 --> 00:18:23,680
Speaker 3: to actually bring them to the rest of the team

334
00:18:23,760 --> 00:18:26,560
Speaker 3: and see how can we actually solve this problem together

335
00:18:26,640 --> 00:18:29,679
Speaker 3: and how can we have One of our values is

336
00:18:29,920 --> 00:18:32,840
Speaker 3: be like a dog with a bone and don't let

337
00:18:32,840 --> 00:18:35,840
Speaker 3: that go, like really try and stay hold of how

338
00:18:35,880 --> 00:18:37,000
Speaker 3: we can solve that problem.

339
00:18:37,119 --> 00:18:39,040
Speaker 2: Yeah, Okay, now you listened on the AX. Based on

340
00:18:39,119 --> 00:18:41,240
Speaker 2: last month's half your result botol line was much better,

341
00:18:41,320 --> 00:18:43,720
Speaker 2: costs it down deverstate income streams, which I'm sure you're

342
00:18:43,720 --> 00:18:47,040
Speaker 2: happy about. As you're attracting investors, right, how do you

343
00:18:47,080 --> 00:18:49,040
Speaker 2: balance those two things that you were just talking about.

344
00:18:49,080 --> 00:18:52,800
Speaker 2: The whole idea that investors like performance, they've got half

345
00:18:52,880 --> 00:18:55,199
Speaker 2: year updates, they want to know what's going on. But

346
00:18:55,480 --> 00:18:57,800
Speaker 2: they're probably with you because you are an innovator. How

347
00:18:57,800 --> 00:18:58,480
Speaker 2: do you balance that?

348
00:18:59,160 --> 00:19:02,760
Speaker 3: Yeah, Look, I think we're still in a position where

349
00:19:02,800 --> 00:19:05,520
Speaker 3: we're a company that is accelerating in what we do,

350
00:19:05,600 --> 00:19:10,080
Speaker 3: whether that's through top line growth or bottom line improvement.

351
00:19:10,160 --> 00:19:13,240
Speaker 3: We're always looking to accelerate that. So I think we

352
00:19:13,280 --> 00:19:16,119
Speaker 3: attract investors that are looking at what this could become

353
00:19:16,160 --> 00:19:19,720
Speaker 3: in the long term. And so it's about chipping away

354
00:19:19,720 --> 00:19:23,320
Speaker 3: at those things that we see that will make the

355
00:19:23,359 --> 00:19:25,679
Speaker 3: big difference in the company in the long term. And

356
00:19:25,720 --> 00:19:29,520
Speaker 3: so this half, for example, we really focused on how

357
00:19:29,520 --> 00:19:32,600
Speaker 3: we could optimize the business more efficiently and how we

358
00:19:32,600 --> 00:19:36,040
Speaker 3: could actually build out our pipeline more efficiently in conversion, etc.

359
00:19:36,400 --> 00:19:39,679
Speaker 3: So I think it's about telling people what you were

360
00:19:39,720 --> 00:19:41,080
Speaker 3: going to do and what that's going to make the

361
00:19:41,080 --> 00:19:43,760
Speaker 3: business so much better, and then obviously show them that

362
00:19:43,800 --> 00:19:44,560
Speaker 3: you can deliver on it.

363
00:19:44,960 --> 00:19:46,600
Speaker 2: Now, I've got to be honest to you, justin I

364
00:19:46,640 --> 00:19:49,119
Speaker 2: didn't know much about camplify apart from the name my

365
00:19:49,200 --> 00:19:52,840
Speaker 2: co host Michael Thompson, though a regular user, a real fan.

366
00:19:53,560 --> 00:19:55,719
Speaker 2: You are a distructor in your industry, and certainly when

367
00:19:55,760 --> 00:19:57,840
Speaker 2: I grew up, there's nothing like campy. How do you

368
00:19:57,920 --> 00:19:59,600
Speaker 2: keep disrupting? How do you distruct yourself.

369
00:20:00,400 --> 00:20:03,240
Speaker 3: Yeah, look, I think it comes back to that finding

370
00:20:03,359 --> 00:20:05,600
Speaker 3: what are the challenges for the customer. So a good

371
00:20:05,640 --> 00:20:08,480
Speaker 3: example for us is that we found that one of

372
00:20:08,480 --> 00:20:13,879
Speaker 3: the biggest concerns from owners was insurance. So how do

373
00:20:13,880 --> 00:20:16,680
Speaker 3: they get insurance, what's the cost of insurance, how do

374
00:20:16,800 --> 00:20:19,119
Speaker 3: we control the quality of insurance, and how do we

375
00:20:19,240 --> 00:20:23,400
Speaker 3: actually integrate that into our product. So we actually went

376
00:20:23,440 --> 00:20:27,320
Speaker 3: out and have set up our own mutual product so

377
00:20:27,359 --> 00:20:30,320
Speaker 3: that we can actually provide that cover for our customers

378
00:20:31,040 --> 00:20:33,320
Speaker 3: and to make sure their vehicles are really well protected

379
00:20:33,359 --> 00:20:37,159
Speaker 3: at the right price point and control the entire process

380
00:20:37,160 --> 00:20:40,560
Speaker 3: and the delivery of that. So we are always trying

381
00:20:40,600 --> 00:20:43,760
Speaker 3: to innovate in terms of what we do to provide

382
00:20:43,840 --> 00:20:47,520
Speaker 3: better quality, better customer service, and hopefully better bottom line

383
00:20:47,560 --> 00:20:48,160
Speaker 3: results as well.

384
00:20:48,680 --> 00:20:50,720
Speaker 2: Okay, so what next? Where were you being three to

385
00:20:50,800 --> 00:20:52,240
Speaker 2: five years hopefully?

386
00:20:53,000 --> 00:20:54,840
Speaker 3: Yeah, look, I think you know, we've still got some

387
00:20:54,880 --> 00:20:57,560
Speaker 3: work to do around that insurance product in Europe, so

388
00:20:57,640 --> 00:20:59,360
Speaker 3: we want to expand that. We've done a great job

389
00:20:59,359 --> 00:21:02,480
Speaker 3: in the Australian market. We are in a couple of

390
00:21:02,520 --> 00:21:04,520
Speaker 3: countries in Europe. We're doing a great job in Australia

391
00:21:04,520 --> 00:21:07,199
Speaker 3: and New Zealand. We want to see that European expansion

392
00:21:07,520 --> 00:21:10,639
Speaker 3: continue to expand and be in more countries and have

393
00:21:10,760 --> 00:21:14,720
Speaker 3: more operations and really leverage what we've built in terms

394
00:21:14,720 --> 00:21:19,320
Speaker 3: of the core underlying infrastructure of the product and the

395
00:21:19,440 --> 00:21:22,800
Speaker 3: insurance business, etc. To be able to get more people

396
00:21:22,840 --> 00:21:26,480
Speaker 3: on the platform. We still have more demand than we

397
00:21:26,560 --> 00:21:29,879
Speaker 3: have supply, so more people looking to go Caribbean and

398
00:21:29,960 --> 00:21:32,320
Speaker 3: keeping then we have available product on the platform, so

399
00:21:32,800 --> 00:21:35,760
Speaker 3: really open that up and make sure that we are

400
00:21:36,840 --> 00:21:41,600
Speaker 3: operating in that positive marketplace, dynamic environment where you've got

401
00:21:41,600 --> 00:21:45,479
Speaker 3: that supply and demand real tactic in place so that

402
00:21:45,520 --> 00:21:47,800
Speaker 3: we can start to significantly grow that.

403
00:21:48,280 --> 00:21:50,879
Speaker 2: Justin thank you for joining the Accelerator series. Thank you

404
00:21:51,440 --> 00:21:56,720
Speaker 2: as Justin Hale's founder and CEO of Camplify, Cimplify, Camplify.

405
00:21:57,080 --> 00:21:59,800
Speaker 2: I'm Sean Almer and this is the Accelerator Series brought

406
00:21:59,800 --> 00:22:02,399
Speaker 2: to you by Air Wallocks. Build the Future is It

407
00:22:02,600 --> 00:22:05,640
Speaker 2: www dot Airwollos dot com to find out more