1 00:00:06,400 --> 00:00:08,960 Speaker 1: Today on Fear and Greed. It's a massive week for 2 00:00:09,000 --> 00:00:12,680 Speaker 1: the economy, with inflation set to drop below three percent 3 00:00:12,760 --> 00:00:14,880 Speaker 1: for the first time in three and a half years, 4 00:00:15,240 --> 00:00:18,360 Speaker 1: the housing market slows as Sydney joins Melbourne among the 5 00:00:18,360 --> 00:00:22,560 Speaker 1: weaker cities, and Commonwealth Bank pushes to get people back 6 00:00:22,560 --> 00:00:25,160 Speaker 1: in the office. All that plus plenty of market news 7 00:00:25,200 --> 00:00:27,080 Speaker 1: and a great story about the price of tickets at 8 00:00:27,120 --> 00:00:29,960 Speaker 1: the World Series of Baseball. Welcome to Fear and Greed, 9 00:00:30,080 --> 00:00:32,760 Speaker 1: daily business news for people who make their own decisions. 10 00:00:32,840 --> 00:00:36,360 Speaker 1: It is Monday, the twenty eighth of October twenty twenty four. 11 00:00:36,640 --> 00:00:39,159 Speaker 1: I'm Michael Thompson and good morning, Sean Aylmer. 12 00:00:39,400 --> 00:00:41,360 Speaker 2: Good morning, Michael, Sean. 13 00:00:41,440 --> 00:00:45,040 Speaker 1: The main story this morning, massive, massive week for the 14 00:00:45,080 --> 00:00:47,720 Speaker 1: local economy with headline and flight. I don't mean to 15 00:00:47,800 --> 00:00:50,400 Speaker 1: overstate it show, but it is a big It's a 16 00:00:50,440 --> 00:00:54,560 Speaker 1: big week with headline inflation expected to have finally fallen 17 00:00:55,080 --> 00:00:59,200 Speaker 1: within the RBA's two to three percent range. But that's 18 00:00:59,400 --> 00:01:01,600 Speaker 1: not going to be enough, is it to convince the 19 00:01:01,640 --> 00:01:03,880 Speaker 1: Central Bank to cut rates? In what are we eight 20 00:01:03,960 --> 00:01:04,520 Speaker 1: days time? 21 00:01:05,240 --> 00:01:09,240 Speaker 2: Afraid not? The Australian and Bureau Statistics this week releases 22 00:01:09,319 --> 00:01:13,759 Speaker 2: the CPI figures, the consumer price index figures. They'll reflect 23 00:01:13,840 --> 00:01:16,840 Speaker 2: the government energy rebase, the three thousand dollars that the 24 00:01:16,880 --> 00:01:19,959 Speaker 2: government handed out to everyone seven hundred and fifty dollars 25 00:01:19,959 --> 00:01:23,039 Speaker 2: per quarter to take off your energy bill. That means 26 00:01:23,080 --> 00:01:25,959 Speaker 2: the headline inflation rate will fall back to two to 27 00:01:26,040 --> 00:01:28,600 Speaker 2: three percent. Energy has been a big reason why inflation 28 00:01:29,040 --> 00:01:31,160 Speaker 2: has been so strong in the past couple of years. 29 00:01:31,600 --> 00:01:33,320 Speaker 2: It'll get back to that two to three percent for 30 00:01:33,360 --> 00:01:35,920 Speaker 2: the first time in three and a half years. That's 31 00:01:35,959 --> 00:01:39,640 Speaker 2: the headline rate problem is the Reserve Bank looked at 32 00:01:39,680 --> 00:01:43,199 Speaker 2: the underlying rate, what they called the trimmed mean rate, 33 00:01:43,600 --> 00:01:45,880 Speaker 2: and the governor of the Reserve Bank, Michelle Bullocks, already 34 00:01:45,880 --> 00:01:48,960 Speaker 2: said that they'll look through those three thousand dollars rebates, 35 00:01:49,520 --> 00:01:52,360 Speaker 2: the trimmed mean rate is more likely to be around 36 00:01:52,480 --> 00:01:54,360 Speaker 2: three and a half percent. Now, what we do know 37 00:01:54,640 --> 00:01:58,920 Speaker 2: is that Michelle Bullock wants that rate to be sustainably 38 00:01:59,040 --> 00:02:02,520 Speaker 2: on the path to two to three percent. One month 39 00:02:02,920 --> 00:02:05,440 Speaker 2: or one quarter of three and a half percent is 40 00:02:05,480 --> 00:02:09,959 Speaker 2: not a sustainable trend when the measure. When the rebate 41 00:02:10,120 --> 00:02:12,960 Speaker 2: eventually expires, the headline rate will throw back to about 42 00:02:12,960 --> 00:02:14,520 Speaker 2: three and a half percent. So three and a half 43 00:02:14,520 --> 00:02:17,040 Speaker 2: percent is really a better reading the uption of all 44 00:02:17,120 --> 00:02:19,480 Speaker 2: that there is a bank won't do anything when it 45 00:02:19,560 --> 00:02:22,720 Speaker 2: meets next week. Now, bond markets have a price in 46 00:02:22,800 --> 00:02:25,359 Speaker 2: a thirty percent chance of a cut in December, seventy 47 00:02:25,360 --> 00:02:28,200 Speaker 2: percent chance in February, one hundred percent chance that there 48 00:02:28,200 --> 00:02:31,480 Speaker 2: will be a cut by May next year. If you 49 00:02:31,520 --> 00:02:34,600 Speaker 2: think about it, this is the September quarter CPI. The 50 00:02:34,639 --> 00:02:37,959 Speaker 2: December quarter CPI will come out in January two in 51 00:02:38,000 --> 00:02:39,520 Speaker 2: a row. So we had a really good number if 52 00:02:39,520 --> 00:02:41,400 Speaker 2: we had three point three three point four this week, 53 00:02:41,520 --> 00:02:45,040 Speaker 2: or we are or even less definitely for the trimmed 54 00:02:45,120 --> 00:02:48,440 Speaker 2: mean same if we got that the following quarter. So 55 00:02:48,480 --> 00:02:50,639 Speaker 2: next January we had a three point one three point two, 56 00:02:50,639 --> 00:02:53,880 Speaker 2: So it's trending down. Maybe you get a rate cut, 57 00:02:54,120 --> 00:02:56,200 Speaker 2: but I still think it's closer to the middle of 58 00:02:56,800 --> 00:02:59,880 Speaker 2: next year before we can actually confidently say there will 59 00:02:59,880 --> 00:03:02,000 Speaker 2: be a rate cut. The other data out this week 60 00:03:02,040 --> 00:03:05,040 Speaker 2: which is really interesting is the US inflation figures, because 61 00:03:05,120 --> 00:03:09,160 Speaker 2: that economy inflation seemed to be falling back towards that 62 00:03:09,200 --> 00:03:12,760 Speaker 2: two percent target rate, which they like, but it seems 63 00:03:12,760 --> 00:03:14,400 Speaker 2: to have stalled a bit, and the US economy is 64 00:03:14,440 --> 00:03:17,200 Speaker 2: actually quite strong at the moment. So when it comes 65 00:03:17,200 --> 00:03:21,320 Speaker 2: to rates and inflation, this is the week for economists 66 00:03:21,320 --> 00:03:22,960 Speaker 2: and for everyone out there, so. 67 00:03:22,919 --> 00:03:25,079 Speaker 1: It's fair to say it is a massive, massive week. 68 00:03:25,320 --> 00:03:27,679 Speaker 2: Yeah right, you did not misspeak, Michael. 69 00:03:27,520 --> 00:03:30,359 Speaker 1: Good And it was also a very big week. Well, 70 00:03:30,360 --> 00:03:32,720 Speaker 1: it has been a very big week for the housing market, 71 00:03:32,840 --> 00:03:34,840 Speaker 1: hasn't it, Shawn? With more than was it more than 72 00:03:34,880 --> 00:03:38,880 Speaker 1: three thousand homes going under the hammer. The preliminary clearance 73 00:03:38,960 --> 00:03:42,440 Speaker 1: rate across the country fell to sixty six point eight percent. 74 00:03:42,880 --> 00:03:44,720 Speaker 2: So this is the way the week we've sort of 75 00:03:44,760 --> 00:03:47,720 Speaker 2: been waiting for. This was the time where it was 76 00:03:47,760 --> 00:03:51,960 Speaker 2: the second busiest week of the year in terms of 77 00:03:52,120 --> 00:03:56,800 Speaker 2: how sales. The week before Easter was bigger. What we 78 00:03:56,880 --> 00:03:59,960 Speaker 2: found out is that the Melbourne clearance rate, the preliminary 79 00:04:00,000 --> 00:04:02,280 Speaker 2: clearance rate for Melbourne, according to core Logic was sixty 80 00:04:02,320 --> 00:04:05,880 Speaker 2: eight point five percent, not bad, in line with what 81 00:04:05,920 --> 00:04:08,880 Speaker 2: Melbourne's been doing. For Sydney, it was just sixty four 82 00:04:08,920 --> 00:04:11,680 Speaker 2: and a half percent. That's down from seventy and a 83 00:04:11,680 --> 00:04:15,520 Speaker 2: half percent six percentage points. That is a big, big drop, 84 00:04:15,560 --> 00:04:18,680 Speaker 2: second lowest of the year. Later this week we'll get 85 00:04:18,720 --> 00:04:22,640 Speaker 2: monthly house priced data, but it just seems that Sydney 86 00:04:22,760 --> 00:04:26,279 Speaker 2: is stalling. Melbourne has stalled. In fact, Melbourne prices over 87 00:04:26,279 --> 00:04:29,279 Speaker 2: the past year have actually gone backwards slightly, along with Hobart. 88 00:04:29,640 --> 00:04:32,960 Speaker 2: Looks like Sydney could well, they won't go backwards out 89 00:04:33,000 --> 00:04:34,880 Speaker 2: of the last twelve months, but they're at a period 90 00:04:34,920 --> 00:04:38,000 Speaker 2: where you suspect they're not going to be rising too much. 91 00:04:38,640 --> 00:04:41,119 Speaker 2: Among the other cities, Brisbane came in at fifty eight percent, 92 00:04:41,160 --> 00:04:45,160 Speaker 2: Adelaide seventy four percent, Act sixty seven percent. The other 93 00:04:45,160 --> 00:04:48,000 Speaker 2: thing worth noting this number this week was sixty six 94 00:04:48,040 --> 00:04:52,000 Speaker 2: point eight percent. The preliminary clearance rate. Well, what we 95 00:04:52,040 --> 00:04:54,919 Speaker 2: found out last week when the number came at sixty 96 00:04:55,080 --> 00:04:57,080 Speaker 2: was high than that sixty seven point four percent. The 97 00:04:57,160 --> 00:04:59,960 Speaker 2: final clearance rate dropped way down to fifty eight point two. 98 00:05:00,400 --> 00:05:03,080 Speaker 2: So we're talking sixty six point eight it's probably likely 99 00:05:03,120 --> 00:05:05,760 Speaker 2: to come down to fifty seven fifty eight percent. That 100 00:05:05,880 --> 00:05:08,520 Speaker 2: is not a strong housing market. Michael, No, certainly not. 101 00:05:08,600 --> 00:05:11,679 Speaker 1: The reason for that is often you've explained that before. 102 00:05:11,720 --> 00:05:14,440 Speaker 1: Isn't it that that agents will often kind of rush 103 00:05:14,520 --> 00:05:18,160 Speaker 1: to report successful sales, the good news, Yeah, but then 104 00:05:18,160 --> 00:05:20,640 Speaker 1: the unsuccessful ones, the auctions that have been passed in 105 00:05:20,720 --> 00:05:22,360 Speaker 1: or pulled from the market or something they kind of 106 00:05:22,400 --> 00:05:24,400 Speaker 1: trickle in over a few days. So often see that 107 00:05:24,400 --> 00:05:27,040 Speaker 1: that adjustment, and in this particular case, it was a 108 00:05:27,080 --> 00:05:27,680 Speaker 1: long way down. 109 00:05:27,960 --> 00:05:29,880 Speaker 2: Yeah, And I mean what you find, I mean the 110 00:05:29,880 --> 00:05:32,240 Speaker 2: core logic data is what we use that same for 111 00:05:32,279 --> 00:05:35,040 Speaker 2: domain and others. What you find is that when they 112 00:05:35,040 --> 00:05:37,760 Speaker 2: don't have a lot of results, the preliminary clearance rate 113 00:05:37,839 --> 00:05:41,440 Speaker 2: inevitably falls more to get the final clearance rate than 114 00:05:41,440 --> 00:05:43,160 Speaker 2: if you've got they do have a lot of results. 115 00:05:43,320 --> 00:05:45,200 Speaker 1: My favorite part of this whole story was how many 116 00:05:45,279 --> 00:05:48,039 Speaker 1: times you had to say the word preliminary provalate. 117 00:05:48,240 --> 00:05:50,440 Speaker 2: Oh my god, it's a shocker. I fuinnd't really had 118 00:05:50,560 --> 00:05:52,880 Speaker 2: preliminary It's okay if you say it slowly. 119 00:05:53,240 --> 00:05:56,680 Speaker 1: Yeah, And look you said it, what's seven times, and 120 00:05:56,800 --> 00:05:59,000 Speaker 1: six out of the seven you nailed. And it was 121 00:05:59,080 --> 00:06:02,000 Speaker 1: just on that last one you're like, got him. Yeah, 122 00:06:02,120 --> 00:06:04,800 Speaker 1: managed to lure you into saying it one more time. Anyway, Sean, 123 00:06:04,839 --> 00:06:06,479 Speaker 1: We've got a lot more that we still need to cover. 124 00:06:06,600 --> 00:06:08,080 Speaker 1: We'll be back in a moment with the rest of 125 00:06:08,160 --> 00:06:10,039 Speaker 1: the day's business news. 126 00:06:15,880 --> 00:06:16,200 Speaker 2: Sean. 127 00:06:16,279 --> 00:06:19,719 Speaker 1: Everyone seemed to be claiming victory after the Queensland election 128 00:06:19,800 --> 00:06:22,720 Speaker 1: the Liberal National Party won and the new premiere is 129 00:06:22,800 --> 00:06:27,520 Speaker 1: David chris A fully but Labor seemed relatively happy as well. 130 00:06:28,120 --> 00:06:31,200 Speaker 2: Yes, so, I think a few weeks bag ALP the 131 00:06:31,320 --> 00:06:34,080 Speaker 2: Labor Party was expected to get trounced, but they didn't. 132 00:06:34,360 --> 00:06:36,920 Speaker 2: So that's kind of the good news. Sure, they lost power, 133 00:06:36,960 --> 00:06:38,840 Speaker 2: but let's you know, Steven Miles, he's going to keep 134 00:06:38,880 --> 00:06:40,880 Speaker 2: his job. He's still going to be leading to the Labor Party. 135 00:06:41,600 --> 00:06:44,000 Speaker 2: The fact that they weren't trounced, they're kind of happy about. 136 00:06:44,240 --> 00:06:47,479 Speaker 2: In the end, the Liberal National Party won forty nine 137 00:06:47,480 --> 00:06:50,640 Speaker 2: seeds to the Alps thirty four, Bob Catter's Party one three, 138 00:06:50,720 --> 00:06:54,320 Speaker 2: the Independent one one sixth still too close to call. 139 00:06:54,640 --> 00:06:59,240 Speaker 2: Prime Minister Anthony Albernizi was out quickly yesterday crowing about 140 00:06:59,240 --> 00:07:02,680 Speaker 2: the losses, crowing about the loss to Labor, saying the 141 00:07:02,720 --> 00:07:05,359 Speaker 2: Greens loss of seats send a message to the Greens. 142 00:07:06,000 --> 00:07:08,240 Speaker 2: Now the Greens only had two seats, they lost one 143 00:07:08,279 --> 00:07:10,920 Speaker 2: of them. The other one looks like it the Greens 144 00:07:10,960 --> 00:07:13,440 Speaker 2: will retain it, though it is still too close to 145 00:07:13,440 --> 00:07:16,320 Speaker 2: call on that one. Mister chrisp fully said the vote 146 00:07:16,480 --> 00:07:20,600 Speaker 2: count exceeded his expectation and his elevation to the state's 147 00:07:20,720 --> 00:07:23,560 Speaker 2: top job was humbling. As I mentioned a moment ago, 148 00:07:23,680 --> 00:07:26,160 Speaker 2: his opponent and the Labor Party will be the former 149 00:07:26,200 --> 00:07:27,760 Speaker 2: Premier Stephn Miles. 150 00:07:28,440 --> 00:07:32,200 Speaker 1: You mentioned Anthony Albernezi. Now the Prime Minister is under 151 00:07:32,240 --> 00:07:37,120 Speaker 1: fire Sean over his relationship with Quantus and former CEO 152 00:07:37,280 --> 00:07:40,440 Speaker 1: Alan Joyce, with a new book saying the PM was 153 00:07:40,480 --> 00:07:43,400 Speaker 1: provided with dozens of free flight upgrades. 154 00:07:43,720 --> 00:07:47,119 Speaker 2: The book, by former Australian Financial Review columnist Joe Aston 155 00:07:47,200 --> 00:07:50,840 Speaker 2: infers that the two were too close and it lists 156 00:07:50,920 --> 00:07:55,320 Speaker 2: at least twenty two free upgrades from Economy tickets dating 157 00:07:55,360 --> 00:07:58,760 Speaker 2: back to two thousand and nine. Now, Miss Trailbaneasy was 158 00:07:58,800 --> 00:08:01,880 Speaker 2: the Shadow Transport Minute and the Transport Minister and no 159 00:08:01,960 --> 00:08:04,480 Speaker 2: doubt he was close to Quantas in those jobs. Mister 160 00:08:04,520 --> 00:08:08,320 Speaker 2: Albanesi said recently is what Another fact that come out 161 00:08:08,360 --> 00:08:11,520 Speaker 2: was that his son became a member of the Chairman's Lounge. Now, 162 00:08:11,520 --> 00:08:14,320 Speaker 2: the Chairman's lounge is something that only very few get 163 00:08:14,400 --> 00:08:17,800 Speaker 2: access to politicians we do see as those types of people. 164 00:08:18,880 --> 00:08:22,040 Speaker 2: Mister Alberzi's son got access to it, which is unusual. Now, 165 00:08:22,080 --> 00:08:24,840 Speaker 2: Miss Alberenzi said that his son was his plus one 166 00:08:25,160 --> 00:08:28,520 Speaker 2: for his chairman's lounge. That's okay, but his partner also 167 00:08:28,600 --> 00:08:32,000 Speaker 2: got invited, so that doesn't hold water to do well 168 00:08:32,000 --> 00:08:35,160 Speaker 2: on that one anyway. Mister Albani said yesterday said he 169 00:08:35,280 --> 00:08:38,160 Speaker 2: declared all the upgrades. One thing about this story, which 170 00:08:39,080 --> 00:08:41,560 Speaker 2: Joe Aston himself says, is that people often don't declare 171 00:08:41,600 --> 00:08:46,040 Speaker 2: politicians don't declare that they've been upgraded from economy to business. 172 00:08:46,040 --> 00:08:49,000 Speaker 2: But Anthony Albinezi made a point of doing that and 173 00:08:49,000 --> 00:08:50,839 Speaker 2: I think that's what the Prime Minister was saying yesterday. 174 00:08:51,000 --> 00:08:53,440 Speaker 2: Hold On, don't blame me if I'm actually doing the 175 00:08:53,559 --> 00:08:56,800 Speaker 2: right thing. The point he ended this though, is the 176 00:08:56,800 --> 00:09:00,800 Speaker 2: government blocked Qatar Airways flying more roots in to Australia 177 00:09:01,440 --> 00:09:05,520 Speaker 2: and the inference is that mister Albenize's relationship with then 178 00:09:05,760 --> 00:09:08,760 Speaker 2: CEO Alan Joyce had a role in that. I'm not 179 00:09:08,800 --> 00:09:11,920 Speaker 2: saying that's the case, but that's definitely the inference from nine. 180 00:09:12,480 --> 00:09:15,679 Speaker 1: Just staying with quantas Sean, the national carrier held its 181 00:09:15,720 --> 00:09:19,400 Speaker 1: AGM on Friday in Hobart and said that it's low 182 00:09:19,440 --> 00:09:24,160 Speaker 1: cost subsidiary, Jet Star, is outperforming expectations domestically. 183 00:09:24,559 --> 00:09:27,480 Speaker 2: Yes, so management said training is in line with expectations 184 00:09:27,480 --> 00:09:32,240 Speaker 2: domestic revenue per available seat kilometer isn't a cracking measure 185 00:09:32,240 --> 00:09:37,120 Speaker 2: of profit revenue per available seat kilometer. It's expected to 186 00:09:37,200 --> 00:09:39,120 Speaker 2: rise by I'm not going to even try and get 187 00:09:39,120 --> 00:09:40,160 Speaker 2: my head around it. 188 00:09:40,160 --> 00:09:42,840 Speaker 1: It's just so opaque, isn't it as to what it 189 00:09:42,960 --> 00:09:45,760 Speaker 1: really actually means, Like, no one really gets that except 190 00:09:45,760 --> 00:09:46,920 Speaker 1: for airline analysts. 191 00:09:47,040 --> 00:09:50,200 Speaker 2: Yeah, yeah, yeah, Well it's that four percent. There you are. 192 00:09:50,679 --> 00:09:51,360 Speaker 2: That's the good news. 193 00:09:51,920 --> 00:09:52,640 Speaker 1: That's good news. 194 00:09:52,840 --> 00:09:56,000 Speaker 2: Jes Stars doing well, but international revenue is falling as 195 00:09:56,000 --> 00:10:00,640 Speaker 2: more competitors returned to Australia. CEO Vanessa Hudson she isn't 196 00:10:00,679 --> 00:10:03,959 Speaker 2: against Katar buying twenty five percent of Virgin that's proposal 197 00:10:04,040 --> 00:10:06,240 Speaker 2: that's on the table at the moment. Quants will invest 198 00:10:06,280 --> 00:10:09,600 Speaker 2: in new aircraft three billion dollars this financial year. It 199 00:10:09,600 --> 00:10:11,800 Speaker 2: will also give twenty five million dollars to staff as 200 00:10:11,840 --> 00:10:14,599 Speaker 2: a one off thank you payment. Its share price was 201 00:10:14,679 --> 00:10:16,520 Speaker 2: up one and a half percent on Friday to more 202 00:10:16,559 --> 00:10:18,320 Speaker 2: than eight dollars. It closed at eight dollars and three 203 00:10:18,360 --> 00:10:21,040 Speaker 2: in the end, which is a record high. The thing 204 00:10:21,200 --> 00:10:24,840 Speaker 2: is the company, the airline reckons that it can grow 205 00:10:24,880 --> 00:10:28,720 Speaker 2: capacity by ten percent this financial year. That's enough certainly 206 00:10:28,800 --> 00:10:31,680 Speaker 2: to help the share price. The new chair John Mullin 207 00:10:31,880 --> 00:10:35,160 Speaker 2: said there was a focus on customer service. Of course, 208 00:10:35,200 --> 00:10:36,800 Speaker 2: there was nothing like the protest for it. Last year 209 00:10:36,800 --> 00:10:39,000 Speaker 2: they had the eighty three percent protest flot over its 210 00:10:39,040 --> 00:10:42,960 Speaker 2: executive pay scheme that all went through. Okay, this year. 211 00:10:43,480 --> 00:10:47,200 Speaker 1: Sean, there was plenty of corporate news around late last week. 212 00:10:47,720 --> 00:10:52,000 Speaker 1: Can you give us two three, three highlights? 213 00:10:52,120 --> 00:10:54,839 Speaker 2: Three highlights? Well, this one doesn't count the first time 214 00:10:54,880 --> 00:10:56,760 Speaker 2: because I'd better tell you what the market closed out. 215 00:10:56,800 --> 00:11:00,079 Speaker 2: It was like flow flat flow. It was flowing, but 216 00:11:00,120 --> 00:11:02,880 Speaker 2: it was flat hundred and eleven points on Friday. For 217 00:11:02,920 --> 00:11:04,560 Speaker 2: the week was down nearly one percent. So I've got 218 00:11:04,559 --> 00:11:08,360 Speaker 2: to pick three three three. Okay, So New Moon new 219 00:11:08,400 --> 00:11:11,000 Speaker 2: Mont the gold stock share price fell more than ten 220 00:11:11,040 --> 00:11:13,600 Speaker 2: percent after a September quarter earnings miss. 221 00:11:13,840 --> 00:11:15,360 Speaker 1: Yep, that's a good res med. 222 00:11:15,840 --> 00:11:18,280 Speaker 2: And now it's eleven percent jump in revenue in the 223 00:11:18,280 --> 00:11:21,040 Speaker 2: September quarter thanks to high demand for its sleep devices 224 00:11:21,120 --> 00:11:24,760 Speaker 2: and masks portfolio. Another interesting one was met Cash. Its 225 00:11:24,760 --> 00:11:28,160 Speaker 2: share price fell after flagging more cost cutting measures and 226 00:11:28,200 --> 00:11:30,440 Speaker 2: response to week trading in its hardware unit. 227 00:11:31,360 --> 00:11:34,400 Speaker 1: Okay, they are three good good highlights. I will grant 228 00:11:34,440 --> 00:11:37,959 Speaker 1: you an extension as well to talk about mineral resources 229 00:11:38,040 --> 00:11:41,000 Speaker 1: and wires tech globs. We can't talk about corporate news 230 00:11:41,040 --> 00:11:43,600 Speaker 1: from last week without the corporate governance stocks. 231 00:11:44,120 --> 00:11:47,240 Speaker 2: No, yes, sorry, yes, I should have gone straight to these. 232 00:11:47,520 --> 00:11:51,240 Speaker 2: So minares fell sharply on Friday on media reports Managing 233 00:11:51,280 --> 00:11:55,560 Speaker 2: director Chris Ellison and other board members allegedly purchased mining 234 00:11:55,600 --> 00:11:58,600 Speaker 2: equipment from the company at significant discounts to market rates. 235 00:11:59,280 --> 00:12:01,640 Speaker 2: Over the weekend, there were reports that Ozzie Super had 236 00:12:01,679 --> 00:12:05,959 Speaker 2: sold down its interests in mineral resources. That was the 237 00:12:06,040 --> 00:12:08,440 Speaker 2: bad news, and the corporate governance stocks the good news, 238 00:12:08,600 --> 00:12:11,640 Speaker 2: at least if you're a wise tech shareholder. It's share 239 00:12:11,679 --> 00:12:14,360 Speaker 2: price jump by as much as sixteen percent on Friday 240 00:12:14,440 --> 00:12:17,360 Speaker 2: following the announcement that founder and long term CEO Richard 241 00:12:17,440 --> 00:12:21,920 Speaker 2: White would step down. However, it's like a Clayton stepping 242 00:12:21,920 --> 00:12:24,959 Speaker 2: down because you actually read the details. I'm not so 243 00:12:25,200 --> 00:12:29,120 Speaker 2: sure now mister White lots of accusations and allegations about 244 00:12:29,120 --> 00:12:33,719 Speaker 2: involving his personal life. He basically will take he stepped down, 245 00:12:33,840 --> 00:12:37,400 Speaker 2: he'll take a brief break before taking up and I 246 00:12:37,480 --> 00:12:40,520 Speaker 2: quote a full time, long term consulting role with the 247 00:12:40,600 --> 00:12:43,520 Speaker 2: company focused on product and business development. He'll still be 248 00:12:43,559 --> 00:12:46,560 Speaker 2: paid a million dollars and your salary. He will report 249 00:12:46,600 --> 00:12:50,520 Speaker 2: to the chair and board, not the CEO, so he 250 00:12:50,559 --> 00:12:54,000 Speaker 2: won't be CEO, but he'll still have a big role. 251 00:12:54,800 --> 00:12:56,920 Speaker 2: I don't know, Michael, does that mean he's stepping down? 252 00:12:57,400 --> 00:13:00,440 Speaker 1: Oh it sounds a little bit mysterious. But the thing 253 00:13:00,520 --> 00:13:03,280 Speaker 1: that gets me then, so the share price jump was 254 00:13:03,320 --> 00:13:07,640 Speaker 1: that because then he is still going to have an 255 00:13:07,679 --> 00:13:11,120 Speaker 1: active role with the company. And obviously investors like that 256 00:13:11,240 --> 00:13:13,720 Speaker 1: because he has been that company really for so long. 257 00:13:14,200 --> 00:13:15,880 Speaker 1: And I suppose also it gives them a bit of 258 00:13:15,920 --> 00:13:18,840 Speaker 1: a circuit breaker because he has effectively stood down. 259 00:13:19,559 --> 00:13:22,600 Speaker 2: Yeah, that is exactly it. He not leaving the company. 260 00:13:23,000 --> 00:13:26,160 Speaker 2: That's why investors because investors are excited because he's not 261 00:13:26,240 --> 00:13:28,120 Speaker 2: leaving the company. But as you say, he is the company. 262 00:13:28,600 --> 00:13:30,719 Speaker 2: So that's why we sold down and you know, sort 263 00:13:30,720 --> 00:13:33,560 Speaker 2: of over the last week until Friday. But he's hanging 264 00:13:33,600 --> 00:13:34,880 Speaker 2: around but won't be seen. 265 00:13:36,280 --> 00:13:38,319 Speaker 1: But by stepping down from CEO, he's given them that 266 00:13:38,840 --> 00:13:41,640 Speaker 1: circuit breaker and maybe moves it on from the front pages. 267 00:13:42,120 --> 00:13:47,319 Speaker 1: Maybe now maybe sean interesting conversation coming up after the show. 268 00:13:47,360 --> 00:13:50,880 Speaker 1: You've got an interview with Roger Montgomery from Montgomery Investment Management. 269 00:13:51,280 --> 00:13:53,679 Speaker 2: So it's all about artificial investment stocks. But what I 270 00:13:53,840 --> 00:13:59,280 Speaker 2: love about this conversation is that Roger tempers the enthusiasm 271 00:13:59,440 --> 00:14:02,120 Speaker 2: just a bit. He puts the rise of AI in 272 00:14:02,320 --> 00:14:05,520 Speaker 2: a historical perspective when this sort of thing has happened before. 273 00:14:06,400 --> 00:14:09,199 Speaker 2: And I mean he is this great example about airlines. 274 00:14:09,480 --> 00:14:11,840 Speaker 2: I can't quite remember the number, but since the airlines 275 00:14:11,880 --> 00:14:15,240 Speaker 2: have been flying in total, they've made a grand total 276 00:14:15,320 --> 00:14:18,000 Speaker 2: and I think it's twenty billion dollars he says, or thereabouts. 277 00:14:18,480 --> 00:14:24,080 Speaker 2: The point being that was a revolution flight and passenger flight, 278 00:14:24,440 --> 00:14:26,120 Speaker 2: but people haven't made money out of it. So he 279 00:14:26,160 --> 00:14:29,600 Speaker 2: compares AI to that and talks about how you might 280 00:14:29,680 --> 00:14:31,760 Speaker 2: be able to make money from AI or not. It's 281 00:14:31,840 --> 00:14:35,600 Speaker 2: just the tempers that whole AI discussion. I urge everyone 282 00:14:35,840 --> 00:14:36,360 Speaker 2: to listen. 283 00:14:36,200 --> 00:14:39,480 Speaker 1: To this one. Yeah, indeed, and Montgomery Investment Management a 284 00:14:39,520 --> 00:14:42,240 Speaker 1: great supporter of fear and greed. I mentioned Commonwealth Bank 285 00:14:42,280 --> 00:14:44,120 Speaker 1: at the top of the show. Sean, they've threatened to 286 00:14:44,200 --> 00:14:48,280 Speaker 1: cut bonuses and discipline workers if they repeatedly break the 287 00:14:48,400 --> 00:14:51,080 Speaker 1: company's return to the office roles. They're getting serious. 288 00:14:51,480 --> 00:14:54,360 Speaker 2: They sure are the nation's largest bank. Sent An email 289 00:14:54,440 --> 00:14:59,080 Speaker 2: to staff saying it will review office attendance monthly. According 290 00:14:59,120 --> 00:15:01,760 Speaker 2: to a story in The finn Review, there'll be two 291 00:15:01,840 --> 00:15:07,400 Speaker 2: written warnings and then further action. The emails said the 292 00:15:07,560 --> 00:15:12,880 Speaker 2: action will impact on variable remuneration and performance ratings. Now 293 00:15:13,280 --> 00:15:17,520 Speaker 2: Combank isn't particularly onerous in terms of staff time. Since 294 00:15:17,840 --> 00:15:20,880 Speaker 2: July last year, it's required staff in the office at 295 00:15:20,920 --> 00:15:23,800 Speaker 2: least fifty percent of the time. Now it's saying if 296 00:15:23,840 --> 00:15:26,840 Speaker 2: you'll break if you break those rules, well you might 297 00:15:26,960 --> 00:15:31,320 Speaker 2: not get your bonus payment and your rating may actually 298 00:15:31,360 --> 00:15:34,680 Speaker 2: be hit. Not alone, Origin Energy has done something similar 299 00:15:34,760 --> 00:15:37,360 Speaker 2: so to Sun Corp and ain Zed. But clearly a 300 00:15:37,400 --> 00:15:39,600 Speaker 2: lot of these big organizations are really struggling to get 301 00:15:39,640 --> 00:15:40,840 Speaker 2: people back into the office. 302 00:15:41,960 --> 00:15:44,320 Speaker 1: It's a cracker of a story that one. Turning to 303 00:15:44,440 --> 00:15:49,440 Speaker 1: international news now Sean Iran's military has indicated that Tehran 304 00:15:49,640 --> 00:15:53,760 Speaker 1: will not retaliate. Immediately after Israel launched air strikes on 305 00:15:53,800 --> 00:15:57,680 Speaker 1: the Islamic Republic, escalating the conflict between the regional foes. 306 00:15:58,000 --> 00:15:59,880 Speaker 2: The strikes out of the weekend triggered fears and all 307 00:16:00,080 --> 00:16:03,400 Speaker 2: out war in the Middle East. Israeli forces launched three 308 00:16:03,480 --> 00:16:07,400 Speaker 2: waves of attacks, saying they had struck military facilities, including 309 00:16:07,440 --> 00:16:11,320 Speaker 2: misshole manufacturing plants and air defenses. It was in retaliation 310 00:16:11,560 --> 00:16:15,640 Speaker 2: for the barrage Iran fired at Israel three weeks ago. Interestingly, 311 00:16:15,920 --> 00:16:18,280 Speaker 2: Iran sought to play down the impact of the strikes 312 00:16:18,320 --> 00:16:21,760 Speaker 2: and rather than vowing revenge, in a statement, it said 313 00:16:21,840 --> 00:16:25,640 Speaker 2: Iran's emphasis was on supporting a ceasefire in Gaza and Lebanon, 314 00:16:25,960 --> 00:16:29,800 Speaker 2: where Israeli forces are fighting Hamas and Hezbala respectively. According 315 00:16:29,880 --> 00:16:33,840 Speaker 2: to the Financial Times, what's interesting there is it wasn't 316 00:16:33,880 --> 00:16:37,000 Speaker 2: angry about the retaliation. It actually talked about a ceasefire. 317 00:16:37,360 --> 00:16:41,080 Speaker 2: So there's some hope there, Some hope there, some. 318 00:16:41,280 --> 00:16:45,560 Speaker 1: Hope, Yeah, Sean, the US presidential election isn't the only 319 00:16:45,640 --> 00:16:49,360 Speaker 1: election that's going on at the moment. Japanese voters went 320 00:16:49,400 --> 00:16:52,040 Speaker 1: to the polls yesterday to decide whether to keep the 321 00:16:52,640 --> 00:16:56,200 Speaker 1: the somewhat scandal tainted Liberal Democratic Party in power. 322 00:16:56,720 --> 00:16:59,240 Speaker 2: Yeah so, the LDP is expected to win most votes, 323 00:16:59,280 --> 00:17:02,040 Speaker 2: but may lose the overall majority in the lower house. 324 00:17:02,120 --> 00:17:04,160 Speaker 2: That means it might be looking for a coalition partner. 325 00:17:04,560 --> 00:17:09,520 Speaker 2: The current Prime Minister, Shigeru issuebe got that wrong. Ishiba Shagaru. 326 00:17:09,600 --> 00:17:11,840 Speaker 2: Ishaba has only been in the job for a few 327 00:17:11,880 --> 00:17:15,000 Speaker 2: weeks and a loss of the absolute majority would sort 328 00:17:15,000 --> 00:17:19,360 Speaker 2: of end the era, the shinzoa Abe era, the late 329 00:17:19,440 --> 00:17:23,320 Speaker 2: Prime Minister. So's it's kind of very interesting to see 330 00:17:24,000 --> 00:17:27,280 Speaker 2: what ends up there. The LDPS probably still likely to 331 00:17:27,359 --> 00:17:28,080 Speaker 2: maintain power. 332 00:17:29,080 --> 00:17:32,000 Speaker 1: Finally, Sean mentioned this one at the top of the show. 333 00:17:32,000 --> 00:17:35,200 Speaker 1: I've been waiting for this. In Major League Baseball, arguably 334 00:17:35,359 --> 00:17:38,560 Speaker 1: the two most famous teams of the New York Yankees 335 00:17:38,600 --> 00:17:40,920 Speaker 1: and the LA Dodgers. If you asked kind of Australians, 336 00:17:41,000 --> 00:17:43,000 Speaker 1: kind of what teams, they would probably be able to 337 00:17:43,080 --> 00:17:46,200 Speaker 1: name those two. They faced off over the weekend in 338 00:17:46,240 --> 00:17:49,560 Speaker 1: the World Series with the average ticket price on the 339 00:17:49,640 --> 00:17:53,679 Speaker 1: secondary market one thousand and seven hundred US dollars. 340 00:17:54,600 --> 00:17:57,680 Speaker 2: Yeah, so what's that? Twenty five twenty six hundred. That's 341 00:17:57,720 --> 00:17:59,200 Speaker 2: the average ticket price. 342 00:17:59,400 --> 00:18:02,080 Speaker 1: The average so it would go much much higher than that. 343 00:18:02,480 --> 00:18:04,399 Speaker 2: Now, if you don't follow Major League Baseball, this is 344 00:18:04,480 --> 00:18:06,600 Speaker 2: like the Grand Final Series. It's the best of seven. 345 00:18:07,480 --> 00:18:09,440 Speaker 2: Two of the biggest starts of the game. Aaron Judge 346 00:18:09,480 --> 00:18:14,040 Speaker 2: plays the Yankee. Shoheatani, the billion dollar baseballer from Japan. 347 00:18:14,480 --> 00:18:19,399 Speaker 2: He plays for the Dodgers. They, in fact, the Dodgers 348 00:18:19,480 --> 00:18:21,400 Speaker 2: used to be in Brooklyn, and so it was sort 349 00:18:21,400 --> 00:18:23,320 Speaker 2: of across the water there in New York vers Brooklyn. 350 00:18:23,960 --> 00:18:26,560 Speaker 2: Now the Dodgers are in LA. It is kind of 351 00:18:26,920 --> 00:18:30,320 Speaker 2: the big event. They haven't faced off in forty three 352 00:18:30,440 --> 00:18:35,760 Speaker 2: years or so. The tonight's game, I was sorry tomorrow night. 353 00:18:35,760 --> 00:18:37,520 Speaker 2: I think the game is in the US's Game three 354 00:18:37,640 --> 00:18:41,280 Speaker 2: at Yankee Stadium. They're the most expensive prices. The average 355 00:18:41,359 --> 00:18:45,000 Speaker 2: average ticket price nearly two thousand, US three thousand ozzy 356 00:18:45,080 --> 00:18:49,000 Speaker 2: standing room only tickets fifteen hundred US twenty three hundred 357 00:18:49,000 --> 00:18:52,920 Speaker 2: Ozzie behind the home plate or above. The Yankees dugout 358 00:18:53,200 --> 00:18:56,720 Speaker 2: most popular spots more than twenty thousand dollars for a seat. 359 00:19:00,160 --> 00:19:01,560 Speaker 2: The only other thing I'd like to say about this, 360 00:19:01,960 --> 00:19:04,960 Speaker 2: I am a big Yankees fan, have been since I 361 00:19:05,040 --> 00:19:06,920 Speaker 2: lived there. I went to a lot of Yankees games. 362 00:19:06,960 --> 00:19:10,040 Speaker 2: My neighbor down the road because I worked odd hours 363 00:19:10,320 --> 00:19:12,000 Speaker 2: in the middle of theday'd always knocking the door. And 364 00:19:12,240 --> 00:19:14,879 Speaker 2: he's a member of Yankee Stadium and he always had 365 00:19:14,880 --> 00:19:17,840 Speaker 2: two tickets in city coming yep, yep. So I went 366 00:19:17,840 --> 00:19:21,560 Speaker 2: along to a lot of games. Well, Game one, those 367 00:19:22,480 --> 00:19:26,280 Speaker 2: what do I say, Dodgy Dodgers. They hit a home run. 368 00:19:27,760 --> 00:19:30,120 Speaker 2: How do I in extra time? They hit a home run, 369 00:19:30,320 --> 00:19:35,320 Speaker 2: so they won Game two? They won. Come on, Yanks, come. 370 00:19:35,160 --> 00:19:37,800 Speaker 1: On, aren't you supposed to be unbiased? 371 00:19:37,960 --> 00:19:41,040 Speaker 2: Sure not when it comes to the Yankees New York teams. 372 00:19:41,160 --> 00:19:41,880 Speaker 2: I'm all for them. 373 00:19:42,280 --> 00:19:45,000 Speaker 1: Fair enough, there we go, all right. Up next is 374 00:19:45,240 --> 00:19:48,000 Speaker 1: Fear and Greed The Week Ahead, featuring our resident economy 375 00:19:48,040 --> 00:19:50,120 Speaker 1: Stephen could call us on the very very big week 376 00:19:50,240 --> 00:19:53,200 Speaker 1: coming up for the economy, and then following that you 377 00:19:53,240 --> 00:19:57,120 Speaker 1: will find Roger Montgomery from Montgomery Investment Management talking all 378 00:19:57,240 --> 00:20:00,200 Speaker 1: about AI. They are both coming up in the and 379 00:20:00,240 --> 00:20:03,040 Speaker 1: Greed playlist on your podcast platform or at Fearangreed dot 380 00:20:03,119 --> 00:20:05,680 Speaker 1: com dot au. Thank you very much, Sean, Thank you. 381 00:20:05,760 --> 00:20:06,080 Speaker 2: Michael. 382 00:20:06,480 --> 00:20:09,080 Speaker 1: It's Monday, the twenty eighth of October twenty twenty four. 383 00:20:09,200 --> 00:20:11,480 Speaker 1: Make sure you're following the podcast and please join us 384 00:20:11,560 --> 00:20:15,400 Speaker 1: online on LinkedIn, Instagram, x TikTok and Facebook. I'm Michael 385 00:20:15,480 --> 00:20:17,720 Speaker 1: Thompson and that was Fear and Greed. Have a great day.