1 00:00:04,160 --> 00:00:06,760 Speaker 1: Welcome to the weekend edition of The Fast Five Business 2 00:00:06,760 --> 00:00:09,240 Speaker 1: News by Fear and Greed. I'm Michael Thompson and Hello 3 00:00:09,280 --> 00:00:10,000 Speaker 1: Sean Ailma. 4 00:00:10,240 --> 00:00:11,360 Speaker 2: Hello Michael Seawan. 5 00:00:11,400 --> 00:00:13,440 Speaker 1: On weekdays, it's all about the Fast five, the top 6 00:00:13,480 --> 00:00:15,800 Speaker 1: five business stories in five minutes. On the weekend though 7 00:00:15,800 --> 00:00:17,640 Speaker 1: we still keep it to five minutes, but we're going 8 00:00:17,680 --> 00:00:19,680 Speaker 1: to pick out the biggest business story of the week, 9 00:00:19,880 --> 00:00:23,239 Speaker 1: the most remarkable story, a mystery category. We change that 10 00:00:23,280 --> 00:00:25,840 Speaker 1: one every week, and our favorite story. Let's jump straight 11 00:00:25,880 --> 00:00:27,600 Speaker 1: into it. Shall I go first with the biggest Shaw? 12 00:00:27,680 --> 00:00:28,000 Speaker 2: Michael? 13 00:00:28,840 --> 00:00:31,600 Speaker 1: For me, it was all about markets this week. What 14 00:00:31,760 --> 00:00:36,199 Speaker 1: a rollercoaster. The ASX started the week it hit a 15 00:00:36,240 --> 00:00:38,120 Speaker 1: six month low. They were big sell off, the tech 16 00:00:38,200 --> 00:00:41,960 Speaker 1: sector poor leading from Wall Street banks for being sold off, 17 00:00:42,000 --> 00:00:45,720 Speaker 1: minus everyone looking pretty dismal. Everyone worried about in Video, 18 00:00:46,200 --> 00:00:49,199 Speaker 1: the world's biggest company, the world's most important company, announcing 19 00:00:49,240 --> 00:00:52,240 Speaker 1: its results. Would it go well? Would the AI boom 20 00:00:52,280 --> 00:00:55,560 Speaker 1: continue booming? And Video did well? And Video did very 21 00:00:55,640 --> 00:00:58,360 Speaker 1: very well quarterly revenue of fifty seven billion US dollars 22 00:00:58,400 --> 00:01:01,120 Speaker 1: and a fourteen percent rise expected this quarter. That's important 23 00:01:01,120 --> 00:01:02,880 Speaker 1: that they expect this to kind of keep on going. 24 00:01:03,000 --> 00:01:05,520 Speaker 1: Nervous investors had their fears allayed for a little while, 25 00:01:05,760 --> 00:01:07,679 Speaker 1: not long though, sean, because it was only kind of 26 00:01:07,720 --> 00:01:10,080 Speaker 1: eighteen hours or so. Then the anxiety and the worry 27 00:01:10,160 --> 00:01:13,000 Speaker 1: kicked in and videos surged, then fell, and Wall Street 28 00:01:13,000 --> 00:01:16,200 Speaker 1: tumbled big time. More than two trillion US dollars was 29 00:01:16,240 --> 00:01:19,080 Speaker 1: wiped off the market's value in just six hours. That 30 00:01:19,160 --> 00:01:22,000 Speaker 1: flowed on then to the ASX as well, and Bitcoin dropped. 31 00:01:22,000 --> 00:01:24,640 Speaker 1: The VIX volatility index hit its highest points in April. 32 00:01:24,840 --> 00:01:27,240 Speaker 1: Chaotic week on markets chaotic. 33 00:01:27,280 --> 00:01:30,480 Speaker 2: My biggest story was the banks started actually last Friday, 34 00:01:30,480 --> 00:01:34,440 Speaker 2: when Aine's had released a report prepared by McKinsey on 35 00:01:34,480 --> 00:01:37,600 Speaker 2: the back of a series of scandals really which led 36 00:01:37,600 --> 00:01:39,399 Speaker 2: to a two hundred and forty million dollar fine for 37 00:01:39,480 --> 00:01:43,800 Speaker 2: widespread misconduct. That report came out and was highly critical 38 00:01:43,840 --> 00:01:47,080 Speaker 2: of the bank's former leadership and culture. It basically said 39 00:01:47,080 --> 00:01:49,200 Speaker 2: it hasn't learned a lot since the Banking Royal Commission 40 00:01:49,240 --> 00:01:52,880 Speaker 2: said it's an insular institution where staff are reluctant to 41 00:01:52,960 --> 00:01:56,200 Speaker 2: challenge and deliver bad news. Then this week we had 42 00:01:56,240 --> 00:01:59,480 Speaker 2: the House of Representatives Economics Committee meeting. We had the 43 00:01:59,560 --> 00:02:03,040 Speaker 2: four of the big banks. Matt Common from Commonwealth Bank, 44 00:02:03,120 --> 00:02:06,120 Speaker 2: National Australian Bank Andrew Irvine, West Pax Anthony Miller and 45 00:02:06,160 --> 00:02:09,720 Speaker 2: Ainsin's Nuno Mattos. On the economy. A couple of them 46 00:02:09,760 --> 00:02:12,760 Speaker 2: reckoned there'll be no more rate cuts. Westpac thinks there 47 00:02:12,800 --> 00:02:15,520 Speaker 2: will be two more rate cuts. On small business. They 48 00:02:15,639 --> 00:02:18,120 Speaker 2: reckon that the market. It is tough for small business 49 00:02:18,160 --> 00:02:20,200 Speaker 2: sometimes to get alone, but there's lots of competition, so 50 00:02:20,280 --> 00:02:22,840 Speaker 2: that's a good thing. On the cost of living, still 51 00:02:22,840 --> 00:02:25,680 Speaker 2: a challenge, though things are getting a little bit better, 52 00:02:26,000 --> 00:02:28,320 Speaker 2: and they're not great fans of the tech companies operating 53 00:02:28,360 --> 00:02:29,399 Speaker 2: in the payment system. 54 00:02:29,880 --> 00:02:31,760 Speaker 1: All right, moving on to a couple of big stories. 55 00:02:31,800 --> 00:02:34,960 Speaker 1: They're moving on to the most remarkable story. What did 56 00:02:35,000 --> 00:02:37,440 Speaker 1: you like this week? Sean Oh Drones Shield. 57 00:02:37,560 --> 00:02:40,040 Speaker 2: It told the market this week that it's chief executive 58 00:02:40,120 --> 00:02:42,639 Speaker 2: chair and another director sold two point four million dollars 59 00:02:42,680 --> 00:02:46,240 Speaker 2: worth of shares after incorrect information had been released to 60 00:02:46,400 --> 00:02:51,040 Speaker 2: the market. Corporate governance at its worst, droneshild, What a ride. 61 00:02:51,040 --> 00:02:54,280 Speaker 2: It's been sixty two cents a share in January, six 62 00:02:54,360 --> 00:02:58,360 Speaker 2: dollars sixty in early October, now back under two dollars. 63 00:02:58,760 --> 00:03:02,519 Speaker 2: It had a long exation basically said that the CEO 64 00:03:02,560 --> 00:03:05,799 Speaker 2: Olig Vaornick sold seventy million dollars worth of shares. Now 65 00:03:05,840 --> 00:03:10,560 Speaker 2: he sold his shares between November six in November twelve. 66 00:03:11,000 --> 00:03:15,280 Speaker 2: On November ten, they missed company mistakenly announced it had 67 00:03:15,880 --> 00:03:18,360 Speaker 2: secured a bunch of deals with the US government that 68 00:03:18,480 --> 00:03:21,280 Speaker 2: pushed up its share price. Another director in the chair 69 00:03:21,320 --> 00:03:24,800 Speaker 2: were also selling at the time, so they presumably financially 70 00:03:24,840 --> 00:03:27,920 Speaker 2: benefited from it. Now we're not saying that they actually 71 00:03:27,919 --> 00:03:30,519 Speaker 2: did it deliberately, but wow, what a dreadful look for 72 00:03:30,560 --> 00:03:31,040 Speaker 2: the company. 73 00:03:31,360 --> 00:03:35,240 Speaker 1: Yeah, absolutely, just quickly. The other remarkable story I thought 74 00:03:35,720 --> 00:03:39,440 Speaker 1: this week the prediction that Amazon, Timu and She and 75 00:03:39,480 --> 00:03:43,200 Speaker 1: these big online retail juggernauts will hold more than a 76 00:03:43,240 --> 00:03:47,560 Speaker 1: third of Australia's online retail market by next year. That's 77 00:03:47,680 --> 00:03:51,200 Speaker 1: eighteen billion dollars worth of sales locally. And that this 78 00:03:51,320 --> 00:03:55,280 Speaker 1: was analysis from Jarden. They said that retailers need scale 79 00:03:55,400 --> 00:03:58,440 Speaker 1: or niche differentiation to survive. Retailers caught in the middle 80 00:03:58,480 --> 00:04:00,960 Speaker 1: think kind of big w and Mayer jb hi Fi 81 00:04:01,320 --> 00:04:04,320 Speaker 1: are going to get squeezed. I think it is remarkable 82 00:04:04,320 --> 00:04:07,840 Speaker 1: a state of retail at the moment. Our mystery category Sean, 83 00:04:08,040 --> 00:04:11,200 Speaker 1: it's kind of back to the past, back to the eighties, 84 00:04:11,240 --> 00:04:13,440 Speaker 1: back to the noughties. Take your pick, pick your decade, 85 00:04:13,600 --> 00:04:15,640 Speaker 1: and find a story that fits neatly back into it. 86 00:04:15,640 --> 00:04:16,200 Speaker 1: What did you like. 87 00:04:16,360 --> 00:04:18,640 Speaker 2: I love the story that West Pape bankers will be 88 00:04:18,680 --> 00:04:21,400 Speaker 2: sent to country towns to work from council offices or 89 00:04:21,440 --> 00:04:25,120 Speaker 2: local libraries one day each fortnight. The bank also won't 90 00:04:25,160 --> 00:04:27,919 Speaker 2: close any more rural branches until twenty thirty, something Gains 91 00:04:27,960 --> 00:04:29,919 Speaker 2: had said it will do. Of course, we've had plenty 92 00:04:29,920 --> 00:04:33,560 Speaker 2: of branch closures in the Bush over recent years. What 93 00:04:33,720 --> 00:04:37,719 Speaker 2: Westpac is doing thinking laterally actually send bankers out, put 94 00:04:37,760 --> 00:04:40,640 Speaker 2: them in little offices in some country towns and provide 95 00:04:40,680 --> 00:04:43,320 Speaker 2: service to the community. I think that's a great back 96 00:04:43,320 --> 00:04:44,480 Speaker 2: to the nineteen to eighty story. 97 00:04:44,680 --> 00:04:47,640 Speaker 1: Yeah, that's a ripper the one that I thought kind 98 00:04:47,680 --> 00:04:51,480 Speaker 1: of probably the naughties. It fits. The Federal Coalition announced 99 00:04:51,520 --> 00:04:54,400 Speaker 1: its energy plan this week, having officially dumped net zero. 100 00:04:54,480 --> 00:04:58,440 Speaker 1: It is a technology agnostic energy plan, focusing on affordability 101 00:04:58,480 --> 00:05:01,119 Speaker 1: a lot of gas as well. Our position leader Susan 102 00:05:01,160 --> 00:05:04,240 Speaker 1: Lee said the Coalition was not anti renewables, but they 103 00:05:04,279 --> 00:05:05,960 Speaker 1: have to be in the right place and they have 104 00:05:06,040 --> 00:05:09,400 Speaker 1: to be balanced by baseload power. Speaking of baseload power, 105 00:05:09,520 --> 00:05:12,600 Speaker 1: the Australia's energy companies came out this week and said 106 00:05:12,600 --> 00:05:15,200 Speaker 1: that they support the government's net zero target and that 107 00:05:15,279 --> 00:05:17,839 Speaker 1: shifting to a mostly renewable grid was the best way 108 00:05:17,920 --> 00:05:21,240 Speaker 1: to keep bills as low as possible. So perhaps a 109 00:05:21,279 --> 00:05:25,520 Speaker 1: slight mismatch there between the coalition's old school energy policy 110 00:05:25,520 --> 00:05:27,520 Speaker 1: and what the energy companies actually want. 111 00:05:27,360 --> 00:05:30,360 Speaker 2: To see happen. Pretty amazing. I think we agree on 112 00:05:31,440 --> 00:05:34,960 Speaker 2: our favorite story and it's kind of a perverse really 113 00:05:35,000 --> 00:05:35,279 Speaker 2: go on. 114 00:05:35,600 --> 00:05:38,520 Speaker 1: Yeah, okay, So this week Australia lost our bid to 115 00:05:38,600 --> 00:05:41,000 Speaker 1: host the COP thirty one Climate Summit. Now we've been 116 00:05:41,040 --> 00:05:44,240 Speaker 1: lobbying for it for months, right, We've spent millions of 117 00:05:44,240 --> 00:05:46,880 Speaker 1: dollars on our bid with other Pacific nations. Turkey has 118 00:05:46,880 --> 00:05:48,800 Speaker 1: won the hosting rights instead. We were going to host 119 00:05:48,839 --> 00:05:53,040 Speaker 1: it in Adelaide. It wasn't meant to be. It's probably 120 00:05:53,080 --> 00:05:56,000 Speaker 1: been well played by the government in a way that yes, 121 00:05:56,040 --> 00:05:59,239 Speaker 1: we have lost. Not a great look. No one likes losing. 122 00:05:59,560 --> 00:06:01,840 Speaker 1: But this thing was going to cost a billion, up 123 00:06:01,839 --> 00:06:04,680 Speaker 1: to two billion dollars to actually put on. We are 124 00:06:04,880 --> 00:06:08,200 Speaker 1: potentially going to actually share the presidency of the event. 125 00:06:08,240 --> 00:06:11,760 Speaker 1: With Turkey through our Energy Minister Chris Bowen. He would 126 00:06:11,760 --> 00:06:14,080 Speaker 1: also be the lead negotiator for next years summit. We'd 127 00:06:14,080 --> 00:06:16,000 Speaker 1: have some pre summit events here in the Pacific, so 128 00:06:16,040 --> 00:06:18,200 Speaker 1: we might have dodged the bullet of having all of 129 00:06:18,240 --> 00:06:21,159 Speaker 1: the costs to do all of this stuff and potentially 130 00:06:21,160 --> 00:06:23,600 Speaker 1: being boxed into some policy that we don't end up 131 00:06:23,640 --> 00:06:26,920 Speaker 1: supporting by hosting it here in Australia. Plus, we've learned 132 00:06:26,920 --> 00:06:28,719 Speaker 1: how to be good losers on the global stage. 133 00:06:28,720 --> 00:06:30,440 Speaker 2: Sean an excellent loss. 134 00:06:30,480 --> 00:06:32,799 Speaker 1: I'd say, indeed, all right, thank you very much, Sean. 135 00:06:33,040 --> 00:06:33,640 Speaker 2: Thanks Michael. 136 00:06:33,760 --> 00:06:35,600 Speaker 1: Here we go five minutes and pretty much everything you 137 00:06:35,640 --> 00:06:37,520 Speaker 1: need to know in the world of business. Don't forget 138 00:06:37,560 --> 00:06:39,560 Speaker 1: to hit follow on the podcast and head to Fear 139 00:06:39,560 --> 00:06:41,200 Speaker 1: and Greed dot com dot au to sign up for 140 00:06:41,240 --> 00:06:43,080 Speaker 1: our free daily newsletter. I'll put a link in the 141 00:06:43,080 --> 00:06:43,920 Speaker 1: show notes as well. 142 00:06:44,040 --> 00:06:44,880 Speaker 2: I'm Michael Thompson. 143 00:06:45,000 --> 00:06:47,279 Speaker 1: This is the fast five business news by Fear and Greed.