1 00:00:04,110 --> 00:00:08,020 Michael Thompson: It's Monday, the 27th of September 2021. Welcome to the 2 00:00:08,020 --> 00:00:10,309 Michael Thompson: Fear and Greed Business Headlines, where we give you the 3 00:00:10,310 --> 00:00:12,990 Michael Thompson: top five business stories you need to know in just 4 00:00:12,990 --> 00:00:15,970 Michael Thompson: five minutes. I'm Michael Thompson and good morning, Sean Aylmer. 5 00:00:16,040 --> 00:00:16,799 Sean Aylmer: Morning, Michael. 6 00:00:16,950 --> 00:00:20,120 Michael Thompson: All right. Five stories, five minutes. Let's get going. Now 7 00:00:20,120 --> 00:00:22,970 Michael Thompson: we often talk about the resources sector, how important it 8 00:00:22,970 --> 00:00:25,210 Michael Thompson: is to our economy, and in many ways it has 9 00:00:25,210 --> 00:00:28,620 Michael Thompson: helped us to manage the COVID crisis at least economically. 10 00:00:29,340 --> 00:00:31,530 Michael Thompson: It seems the market's gone south over the past few 11 00:00:31,530 --> 00:00:32,360 Michael Thompson: weeks. What's happened? 12 00:00:32,460 --> 00:00:35,670 Sean Aylmer: Well, Michael, fears about China slowing, a global shortage in 13 00:00:35,670 --> 00:00:39,740 Sean Aylmer: the semiconductor chip market, restrictions on steel production in China, 14 00:00:39,979 --> 00:00:43,190 Sean Aylmer: and a sudden dislike of gold has hit shareholders hard. 15 00:00:43,659 --> 00:00:47,350 Sean Aylmer: Australian investors, even if it's through their super funds, tend 16 00:00:47,350 --> 00:00:49,940 Sean Aylmer: to invest in financial service firms like the big banks 17 00:00:50,150 --> 00:00:53,690 Sean Aylmer: and mining and exploration stocks, but the latter has just 18 00:00:53,690 --> 00:00:55,980 Sean Aylmer: been a bad investment over the past couple of months. 19 00:00:56,280 --> 00:00:58,960 Sean Aylmer: The iron ore miners have tumbled alongside the price of 20 00:00:58,960 --> 00:01:01,550 Sean Aylmer: iron ore. The commodity is now trading at half the 21 00:01:01,550 --> 00:01:03,990 Sean Aylmer: level of four months ago, and the big miners have 22 00:01:03,990 --> 00:01:06,490 Sean Aylmer: gone for the ride. The gold stocks aren't performing very 23 00:01:06,490 --> 00:01:09,940 Sean Aylmer: well either. Share prices have fallen much more than the 24 00:01:09,940 --> 00:01:13,120 Sean Aylmer: price of the precious metal. Many gold mining stocks are 25 00:01:13,120 --> 00:01:15,730 Sean Aylmer: trading at their lowest levels since the start of the pandemic, 26 00:01:15,730 --> 00:01:18,130 Sean Aylmer: and if you exclude the plunge around March last year, 27 00:01:18,400 --> 00:01:21,180 Sean Aylmer: they're at multi- year lows. Now we know energy companies 28 00:01:21,180 --> 00:01:23,890 Sean Aylmer: can't find a friend and even the battery metals groups 29 00:01:23,890 --> 00:01:26,779 Sean Aylmer: are struggling. What's it all mean? Well, do you buy 30 00:01:26,780 --> 00:01:29,100 Sean Aylmer: in the dips? Will the economic recovery gather speed and 31 00:01:29,100 --> 00:01:32,100 Sean Aylmer: help the mining stocks? Has a recent boom come and gone? 32 00:01:32,459 --> 00:01:34,300 Sean Aylmer: It's going to be a very interesting few months. 33 00:01:34,690 --> 00:01:37,899 Michael Thompson: It sure will be. That's story, number one. Onto story number two, 34 00:01:38,180 --> 00:01:41,209 Michael Thompson: there were warnings galore last week from the reserve bank, 35 00:01:41,209 --> 00:01:44,419 Michael Thompson: from the Commonwealth Bank, from ANZ, even the international monetary fund, 36 00:01:44,540 --> 00:01:47,700 Michael Thompson: everyone warning about the housing market and the soaring prices. 37 00:01:47,980 --> 00:01:50,980 Michael Thompson: We're now well into the spring selling season. What were 38 00:01:50,980 --> 00:01:52,810 Michael Thompson: auction results like over the weekend? 39 00:01:53,350 --> 00:01:55,480 Sean Aylmer: They were really good. Clearly, no one was listening to the 40 00:01:55,480 --> 00:01:58,790 Sean Aylmer: banks of the regulators. Sydney's property market posted its best 41 00:01:58,790 --> 00:02:04,720 Sean Aylmer: clearance rate since April at 84.3%. The national rate was 82.4% 42 00:02:04,720 --> 00:02:06,970 Sean Aylmer: with a big jump in Melbourne, which had fallen behind 43 00:02:06,970 --> 00:02:09,139 Sean Aylmer: in recent weeks. Now part of that is because the 44 00:02:09,139 --> 00:02:12,440 Sean Aylmer: ban on home inspections has been lifted. It recorded a 45 00:02:12,440 --> 00:02:16,329 Sean Aylmer: 77.2 clearance rate, and that was the best since May according to 46 00:02:16,330 --> 00:02:19,570 Sean Aylmer: Core Logic. It all came after the international monetary fund, 47 00:02:19,570 --> 00:02:22,450 Sean Aylmer: which its goal in life is to ensure financial stability 48 00:02:22,450 --> 00:02:24,950 Sean Aylmer: around the world. The IMF came out and said Australia 49 00:02:24,960 --> 00:02:28,810 Sean Aylmer: needs to address the rising risks posed by higher house prices. 50 00:02:29,110 --> 00:02:31,280 Sean Aylmer: It's too worried that people are getting themselves into too 51 00:02:31,280 --> 00:02:34,410 Sean Aylmer: much debt. Reserve Bank said the same thing last week. Commonwealth 52 00:02:34,410 --> 00:02:36,910 Sean Aylmer: Bank said the same thing last week. But, as I mentioned, 53 00:02:36,910 --> 00:02:38,880 Sean Aylmer: no one's listening. There's not a lot of stock on 54 00:02:38,880 --> 00:02:40,680 Sean Aylmer: the market, so it is a good time to be selling, 55 00:02:40,680 --> 00:02:43,060 Sean Aylmer: and that's helping clearance rates but maybe people are getting 56 00:02:43,169 --> 00:02:45,470 Sean Aylmer: in ahead of tightening of the rules as well. Just maybe. 57 00:02:46,000 --> 00:02:48,109 Michael Thompson: All right. That's story number two. You mentioned there the 58 00:02:48,110 --> 00:02:51,700 Michael Thompson: IMF. They actually had a bit to say about Australia 59 00:02:51,700 --> 00:02:53,760 Michael Thompson: and about zombie companies as well. 60 00:02:54,190 --> 00:02:56,900 Sean Aylmer: Sure did. The IMF warned that there'd be a reckoning 61 00:02:56,900 --> 00:03:00,059 Sean Aylmer: for zombie companies when the government support is withdrawn from 62 00:03:00,060 --> 00:03:02,740 Sean Aylmer: the economy, and that could mean a spike in corporate 63 00:03:02,800 --> 00:03:06,839 Sean Aylmer: insolvencies. Remember we expected a big spike in insolvencies at 64 00:03:06,840 --> 00:03:09,380 Sean Aylmer: the beginning of this year, and it just never happened. 65 00:03:09,680 --> 00:03:14,169 Sean Aylmer: Government support kept going and helped these companies that otherwise 66 00:03:14,169 --> 00:03:16,550 Sean Aylmer: would have gone bust. What the IMF is saying is 67 00:03:16,550 --> 00:03:19,330 Sean Aylmer: that the day of reckoning is coming. It also called 68 00:03:19,330 --> 00:03:22,540 Sean Aylmer: for tax reform, saying Australia needed to reduce income and 69 00:03:22,540 --> 00:03:26,210 Sean Aylmer: corporate tax rates and lift the GST, that old chestnut. 70 00:03:26,550 --> 00:03:29,389 Michael Thompson: All right on to story number four. Interesting one, this 71 00:03:29,389 --> 00:03:33,280 Michael Thompson: one. A big German group wants to buy Australian renewable 72 00:03:33,280 --> 00:03:35,090 Michael Thompson: energy farms. What's going on there? 73 00:03:35,440 --> 00:03:38,900 Sean Aylmer: A crowd called ACE Power, ACE, is a German- backed 74 00:03:38,950 --> 00:03:41,520 Sean Aylmer: renewable energy developer, and it wants to spend about two 75 00:03:41,520 --> 00:03:43,210 Sean Aylmer: and a half billion dollars in the next three or 76 00:03:43,210 --> 00:03:47,470 Sean Aylmer: four years, buying up wind, solar, and storage projects in Australia. 77 00:03:48,020 --> 00:03:50,610 Sean Aylmer: It believes as coal plants shut down there's plenty of 78 00:03:50,610 --> 00:03:53,940 Sean Aylmer: opportunity if you own renewable energy in Australia. A few 79 00:03:53,940 --> 00:03:57,190 Sean Aylmer: things going on here. Remember, last week, EnergyAustralia said it 80 00:03:57,330 --> 00:04:00,570 Sean Aylmer: was bringing forward its closure of the Mount Piper coal- 81 00:04:00,570 --> 00:04:03,640 Sean Aylmer: fired power station in Lithgow west of Sydney, the Yallourn 82 00:04:03,640 --> 00:04:07,190 Sean Aylmer: Power Station in Victoria's Latrobe Valley will also be closed earlier. 83 00:04:07,620 --> 00:04:10,380 Sean Aylmer: Investors don't want to put their money into fossil fuel companies. 84 00:04:10,380 --> 00:04:12,850 Sean Aylmer: You can see that because coal and oil prices are high, 85 00:04:13,130 --> 00:04:14,950 Sean Aylmer: but the share price of the companies that get the 86 00:04:14,950 --> 00:04:17,960 Sean Aylmer: stuff out of the ground aren't. Then you have Australia 87 00:04:17,960 --> 00:04:20,669 Sean Aylmer: as a nation with plenty of land, plenty of sunshine, 88 00:04:20,670 --> 00:04:23,830 Sean Aylmer: plenty of wind. That means plenty of opportunity to build 89 00:04:23,830 --> 00:04:27,100 Sean Aylmer: renewable businesses, and the Europeans that are best at it. 90 00:04:27,570 --> 00:04:30,110 Sean Aylmer: When it comes to renewables, Europe has been doing it 91 00:04:30,110 --> 00:04:32,359 Sean Aylmer: for decades. The rest of the world are only getting 92 00:04:32,360 --> 00:04:34,400 Sean Aylmer: into it now. That's why I reckon you'll end up 93 00:04:34,400 --> 00:04:37,070 Sean Aylmer: seeing plenty more European companies heading down under. 94 00:04:37,860 --> 00:04:41,049 Michael Thompson: All right. Story number five, and it's a very exciting 95 00:04:41,050 --> 00:04:43,349 Michael Thompson: story for anyone who's ever had a panic when their 96 00:04:43,860 --> 00:04:46,540 Michael Thompson: phone battery gets to 5% and they're hunting around for 97 00:04:46,540 --> 00:04:47,230 Michael Thompson: a power cable. 98 00:04:47,510 --> 00:04:50,250 Sean Aylmer: It is. There's a push by the European union to 99 00:04:50,250 --> 00:04:54,799 Sean Aylmer: require the smartphone industry, Apple, Google, all the Android devices, 100 00:04:55,089 --> 00:04:58,850 Sean Aylmer: to adopt a uniform charging cord. If you, like me, 101 00:04:59,080 --> 00:05:01,980 Sean Aylmer: live in a household mixed with Apple and Android devices, 102 00:05:02,230 --> 00:05:05,560 Sean Aylmer: this could be a new beginning, a lifesaver, or it 103 00:05:05,560 --> 00:05:08,550 Sean Aylmer: could just cause more fights over whose charger is whose. 104 00:05:08,779 --> 00:05:11,320 Michael Thompson: That's it, the top five business stories in five minutes. 105 00:05:11,320 --> 00:05:12,380 Michael Thompson: Thank you very much, Sean. 106 00:05:12,610 --> 00:05:13,190 Sean Aylmer: Thanks Michael. 107 00:05:13,300 --> 00:05:16,640 Michael Thompson: It's Monday the 27th of September 2021. Now if five 108 00:05:16,640 --> 00:05:19,779 Michael Thompson: minutes isn't enough, then find our longer podcast called Fear 109 00:05:19,779 --> 00:05:22,800 Michael Thompson: and Greed on your podcast platform and join us online 110 00:05:22,800 --> 00:05:25,159 Michael Thompson: on LinkedIn, Twitter, and Facebook. You can always find more 111 00:05:25,160 --> 00:05:28,740 Michael Thompson: info on fearandgreed.com.au. I'm Michael Thompson, and that was the 112 00:05:28,740 --> 00:05:30,930 Michael Thompson: Fear and Greed Business Headlines. Have a great day.