1 00:00:03,880 --> 00:00:06,640 Speaker 1: It's Wednesday, the twenty ninth of May twenty twenty four. 2 00:00:06,840 --> 00:00:09,520 Speaker 1: Welcome to the Fast five Business News by Fear and Greed. 3 00:00:09,560 --> 00:00:11,280 Speaker 1: Will we give you the top five business stories you 4 00:00:11,320 --> 00:00:13,720 Speaker 1: need to know when just five minutes. I'm Michael Thompson 5 00:00:13,760 --> 00:00:15,200 Speaker 1: and good morning, Sean Aylmer. 6 00:00:15,360 --> 00:00:17,080 Speaker 2: Good morning, Michael, Sean. 7 00:00:17,120 --> 00:00:20,120 Speaker 1: Five stories, five minutes, let's go. Story number one. Retail 8 00:00:20,200 --> 00:00:23,160 Speaker 1: sales have fallen to their lowest level in two years 9 00:00:23,200 --> 00:00:26,640 Speaker 1: when measured on a per capita basis, highlighting just how 10 00:00:26,680 --> 00:00:30,120 Speaker 1: tough it is for households and many businesses were struggling 11 00:00:30,320 --> 00:00:34,080 Speaker 1: obviously with high interest rates and overwhelming I'm going to 12 00:00:34,120 --> 00:00:35,760 Speaker 1: say sean cost of living pressures. 13 00:00:35,960 --> 00:00:38,680 Speaker 2: Retail turnover row zero point one percent in April, following 14 00:00:38,720 --> 00:00:41,080 Speaker 2: a zero point four percent fall in March. For the year, 15 00:00:41,159 --> 00:00:43,040 Speaker 2: sales were up just one point three percent, But if 16 00:00:43,080 --> 00:00:45,000 Speaker 2: you include the impact of all the people that have 17 00:00:45,080 --> 00:00:47,880 Speaker 2: come into the country net migration, then per capita sales 18 00:00:47,920 --> 00:00:52,400 Speaker 2: went backwards. The ABS said consumers are reducing discretionary spending 19 00:00:52,440 --> 00:00:55,640 Speaker 2: and the biggest falls came in clothing, footwear, and personal accessories. 20 00:00:55,880 --> 00:00:57,800 Speaker 2: The bureau said, looking over the last couple of months, 21 00:00:57,840 --> 00:01:01,280 Speaker 2: there's a week underlying spending across all of retail. The 22 00:01:01,320 --> 00:01:04,520 Speaker 2: stories that emerged in recent months is that younger Australians 23 00:01:04,560 --> 00:01:07,520 Speaker 2: are coming back sharply. Older astrainings are still spending. In 24 00:01:07,640 --> 00:01:09,679 Speaker 2: large part this is about the cost of housing, rents, 25 00:01:09,720 --> 00:01:13,080 Speaker 2: mortgages that's hitting younger Australians harder. Not really a surprise. 26 00:01:13,200 --> 00:01:15,240 Speaker 2: Higher interest rates is supposed to slow spending and the 27 00:01:15,240 --> 00:01:18,240 Speaker 2: Reserve Bank has noted that it's a household sector that's 28 00:01:18,280 --> 00:01:21,119 Speaker 2: suffering most. That's cold comfort though for people out there 29 00:01:21,160 --> 00:01:24,039 Speaker 2: trying to pay rent or insurance bills. The X factor 30 00:01:24,080 --> 00:01:26,959 Speaker 2: aback to hit the economies the Stage three tax cuts 31 00:01:27,120 --> 00:01:29,760 Speaker 2: which kick in from July one. What will people do 32 00:01:29,840 --> 00:01:30,880 Speaker 2: with the extra money? 33 00:01:31,080 --> 00:01:33,880 Speaker 1: Sean. We talk plenty about how hard it is for households, 34 00:01:33,880 --> 00:01:36,560 Speaker 1: how hard it is for consumers, but this is hurting 35 00:01:36,600 --> 00:01:37,640 Speaker 1: business as well. 36 00:01:37,720 --> 00:01:40,480 Speaker 2: Sure is. We've had a run of consumer facing brands 37 00:01:40,600 --> 00:01:44,000 Speaker 2: downgrade their earnings outlook over the past fortnite yesterday it 38 00:01:44,040 --> 00:01:46,680 Speaker 2: was a turn of card dealer Peter Warrant Automotive. The 39 00:01:46,720 --> 00:01:50,880 Speaker 2: group operates in eighty locations, sales makes including Toyota, Measure, 40 00:01:51,000 --> 00:01:54,440 Speaker 2: Volkswagen and Mercedes just basically said customer demand for new 41 00:01:54,520 --> 00:01:57,800 Speaker 2: vehicles is falling sharply. Other companies to downgrade recently a 42 00:01:57,880 --> 00:02:01,600 Speaker 2: warn of lower value consumer purchases include BAB Corp, which 43 00:02:01,600 --> 00:02:05,680 Speaker 2: owns Autobarn, Burston and Midas Baby Bunting. Debi Group owns 44 00:02:05,760 --> 00:02:09,040 Speaker 2: Dan Murphy's Coles, Where's Farmers, which of course owns Bunnings, 45 00:02:09,120 --> 00:02:13,440 Speaker 2: Jbhi Fire, Super Retail, Temple and Webster. Tough times out there, Michael. 46 00:02:13,480 --> 00:02:17,519 Speaker 1: Yeah, certainly is story number two. Sean Industry minister Ed 47 00:02:17,600 --> 00:02:20,839 Speaker 1: Husick has called for a lower corporate tax rate, either 48 00:02:20,880 --> 00:02:24,720 Speaker 1: by cutting it or through other incentives, such as say 49 00:02:24,720 --> 00:02:25,760 Speaker 1: an investment allowance. 50 00:02:26,160 --> 00:02:29,000 Speaker 2: It's significant that a Labour minister is advocating change, given 51 00:02:29,040 --> 00:02:31,800 Speaker 2: that in opposition, the party is generally fought against lower 52 00:02:31,840 --> 00:02:34,880 Speaker 2: taxes for companies. In twenty eighteen, the Termbo government tried 53 00:02:34,880 --> 00:02:36,840 Speaker 2: to cut the corporate tax rate to twenty five percent 54 00:02:36,880 --> 00:02:39,400 Speaker 2: for all companies, not just small business, but it failed. 55 00:02:39,720 --> 00:02:42,480 Speaker 2: The current rate is thirty percent. Mister Husick said, given 56 00:02:42,520 --> 00:02:46,720 Speaker 2: wages arising, it would be politically easier to make the 57 00:02:46,800 --> 00:02:49,440 Speaker 2: change today than pre pandemic. He said businesses need to 58 00:02:49,480 --> 00:02:52,040 Speaker 2: be able to invest in free up capital, and a 59 00:02:52,120 --> 00:02:54,639 Speaker 2: lower tax rate could do that now. In the recent budget, 60 00:02:55,360 --> 00:02:58,520 Speaker 2: Treasury Jim Charms opted for production tax credits for critical 61 00:02:58,560 --> 00:03:00,960 Speaker 2: minerals and hydrogen. There was also an extension of the 62 00:03:00,960 --> 00:03:04,760 Speaker 2: instant asset rider for small businesses, but no broader corporate 63 00:03:04,800 --> 00:03:05,400 Speaker 2: tax relief. 64 00:03:05,560 --> 00:03:08,240 Speaker 1: The story Number three A couple of high profile companies 65 00:03:08,240 --> 00:03:11,160 Speaker 1: are in the middle of sexual harassment scandals, with both 66 00:03:11,240 --> 00:03:15,520 Speaker 1: Nine Entertainment and Country Road Group fighting some pretty shocking allegations. 67 00:03:15,760 --> 00:03:18,440 Speaker 2: In the Nine case, former news director Darren Wick allegedly 68 00:03:18,480 --> 00:03:20,880 Speaker 2: sexually harassed a number of women at Nine. He stepped 69 00:03:20,919 --> 00:03:22,800 Speaker 2: down from the role in March this year, but, according 70 00:03:22,800 --> 00:03:25,360 Speaker 2: to media reports, received a one million dollar plus payout 71 00:03:25,360 --> 00:03:28,359 Speaker 2: when he left. Nine newspapers then reported that the publicity 72 00:03:28,440 --> 00:03:31,480 Speaker 2: chief of stan and nine subsidiary left the business weeks 73 00:03:31,520 --> 00:03:35,200 Speaker 2: after an investigation into allegations of an appropriate workplace conduct. 74 00:03:35,440 --> 00:03:38,200 Speaker 2: A Country Road Group, two highly placed executives have left 75 00:03:38,400 --> 00:03:41,120 Speaker 2: and the Global bloss is flying to Australia to address 76 00:03:41,120 --> 00:03:44,280 Speaker 2: staff to announce an external investigation into the handling of 77 00:03:44,320 --> 00:03:47,480 Speaker 2: complaints at the retailers Melbourne headquarters. According to the Australian 78 00:03:47,600 --> 00:03:49,960 Speaker 2: staff have complained of feeling unsafe. 79 00:03:50,160 --> 00:03:53,920 Speaker 1: Soy Number four, Commonwealth Bank chief executive Matt Commons says 80 00:03:54,160 --> 00:03:57,760 Speaker 1: artificial intelligence will reshape the workforce over the medium and 81 00:03:57,840 --> 00:04:01,000 Speaker 1: longer term, but he's downplayed as benefits for the lender 82 00:04:01,000 --> 00:04:01,840 Speaker 1: in the short term. 83 00:04:02,040 --> 00:04:05,240 Speaker 2: Mister Commons, speaking of MAFR conference, pointed at two comparisons 84 00:04:05,240 --> 00:04:08,520 Speaker 2: of artificial intelligence with advances made during the agricultural and 85 00:04:08,560 --> 00:04:12,280 Speaker 2: industrial revolutions. While there will be reshaping of businesses over 86 00:04:12,320 --> 00:04:15,880 Speaker 2: the medium and long terms, it isn't clear exactly what 87 00:04:15,920 --> 00:04:18,320 Speaker 2: skills are needed right now to help with the change. 88 00:04:18,480 --> 00:04:21,040 Speaker 2: He said it's important to distinguish between the hype today 89 00:04:21,120 --> 00:04:24,120 Speaker 2: and pragnatism around the future, saying you don't go from 90 00:04:24,120 --> 00:04:27,080 Speaker 2: a horse and buggy straight to a tesla. Mister Common 91 00:04:27,120 --> 00:04:30,120 Speaker 2: said com Off Bank was using generative AI to improve 92 00:04:30,160 --> 00:04:32,479 Speaker 2: the customer experience, adding that it's being used in an 93 00:04:32,520 --> 00:04:35,360 Speaker 2: assistant capacity, but that overall the uses that are relatively 94 00:04:35,400 --> 00:04:36,880 Speaker 2: small in the grand scheme of things. 95 00:04:37,520 --> 00:04:40,320 Speaker 1: Last one souring number five. More people are using local 96 00:04:40,360 --> 00:04:44,080 Speaker 1: petrol stations or convenience stores to stock up on fresh 97 00:04:44,080 --> 00:04:47,240 Speaker 1: food and snacks and groceries, and it's eating into the 98 00:04:47,320 --> 00:04:48,400 Speaker 1: supermarket sector. 99 00:04:48,680 --> 00:04:51,520 Speaker 2: That's according to a new report by the Australian Association 100 00:04:51,600 --> 00:04:55,120 Speaker 2: of convenience stores, fast, convenient and fresh food sales arising, 101 00:04:55,120 --> 00:04:58,400 Speaker 2: although tobacco sale is a critical item at surveys are dropping. 102 00:04:58,760 --> 00:05:01,400 Speaker 2: Australia's convenience store as led by brands such as seven 103 00:05:01,440 --> 00:05:03,840 Speaker 2: to eleven, m Pole, VP and Coles Express, recorded a 104 00:05:03,920 --> 00:05:06,919 Speaker 2: three point one percent rise in sales last year, including 105 00:05:06,920 --> 00:05:09,840 Speaker 2: a twelve point six percent jump in food and beverages. Well, 106 00:05:09,839 --> 00:05:12,680 Speaker 2: I'm truly outstripping the big soupermarkets. The total number of 107 00:05:12,720 --> 00:05:15,160 Speaker 2: convenience retail outlets grew by about one and a half 108 00:05:15,160 --> 00:05:18,839 Speaker 2: percent last year to seven three hundred and fifty seven stores. 109 00:05:19,240 --> 00:05:22,159 Speaker 2: Food is now a much bigger seller than petrol food. 110 00:05:22,240 --> 00:05:25,200 Speaker 2: Last year, food and beverage was six billion dollars worth 111 00:05:25,200 --> 00:05:27,560 Speaker 2: of sales. Non food such as feel and tobacco was 112 00:05:27,600 --> 00:05:29,000 Speaker 2: just four point three billion dollars. 113 00:05:29,120 --> 00:05:31,120 Speaker 1: All right, there we go, the top five business stories 114 00:05:31,120 --> 00:05:34,320 Speaker 1: in five minutes. Thank you Sean, Thank you Michael. It's Wednesday, 115 00:05:34,320 --> 00:05:36,520 Speaker 1: the twenty ninth of May twenty twenty four. Remember to 116 00:05:36,600 --> 00:05:38,760 Speaker 1: hit follow on the podcast, and if five minutes isn't enough, 117 00:05:38,760 --> 00:05:40,840 Speaker 1: you can find our longer daily show called Fear and 118 00:05:40,880 --> 00:05:44,000 Speaker 1: Greed wherever you listen to podcasts and out every Wednesday 119 00:05:44,279 --> 00:05:46,320 Speaker 1: is the new episode of How Do They Afford That, 120 00:05:46,400 --> 00:05:49,000 Speaker 1: our sister podcast all about making your money work a 121 00:05:49,000 --> 00:05:51,200 Speaker 1: bit harder for you. I'll put a link in today's 122 00:05:51,200 --> 00:05:53,359 Speaker 1: show notes. I'm Michael Thompson and that was the Fast 123 00:05:53,360 --> 00:05:55,880 Speaker 1: five Business news by Fear and Greed. Have a great day.