1 00:00:06,320 --> 00:00:10,440 Speaker 1: Australia's financial regulators have warned that people are falling behind 2 00:00:10,520 --> 00:00:14,240 Speaker 1: in mortgage repayments. Private equity group Baine bids for one 3 00:00:14,240 --> 00:00:18,840 Speaker 1: of Australia's bigger retailers, and Apple unveils its AI products 4 00:00:18,840 --> 00:00:22,040 Speaker 1: for smartphones. Welcome to Fear and Greed. Daily business news 5 00:00:22,040 --> 00:00:24,520 Speaker 1: for people who make their own decisions. It is Wednesday, 6 00:00:24,600 --> 00:00:27,680 Speaker 1: the twelfth of June twenty twenty four. Are Michael Thompson 7 00:00:27,680 --> 00:00:29,080 Speaker 1: and Good Morning, Sean Aylmer. 8 00:00:29,480 --> 00:00:31,360 Speaker 2: Good morning Michael, Sean. 9 00:00:31,160 --> 00:00:34,840 Speaker 1: Straight onto the big story this morning. Australia's financial regulators 10 00:00:34,880 --> 00:00:38,479 Speaker 1: have warned that the share of borrowers falling behind on 11 00:00:38,520 --> 00:00:42,400 Speaker 1: mortgage repayments has continued to rise as interest rates remain 12 00:00:42,479 --> 00:00:43,680 Speaker 1: at decade long highs. 13 00:00:43,920 --> 00:00:47,960 Speaker 2: The increase in financial hardship applications is also rising, though 14 00:00:48,000 --> 00:00:50,880 Speaker 2: they are coming off a very low level, according to 15 00:00:50,920 --> 00:00:54,120 Speaker 2: the Council of Financial Regulators. In its quarterly statement, the 16 00:00:54,160 --> 00:00:57,320 Speaker 2: CFR said most borrowers have continued to meet their debt 17 00:00:57,440 --> 00:01:00,279 Speaker 2: repayments now. The CFR has made up of the Reserve Bank, 18 00:01:00,320 --> 00:01:03,920 Speaker 2: the Australian Securities and Investments Commission, the Australian Prudential Regulation 19 00:01:03,960 --> 00:01:08,080 Speaker 2: Authority and Treasury it very much understands what's going on 20 00:01:08,120 --> 00:01:10,240 Speaker 2: in the market, and the fact that they have highlighted 21 00:01:10,959 --> 00:01:13,840 Speaker 2: that the share of borrow was falling behind on mortgage 22 00:01:13,880 --> 00:01:18,399 Speaker 2: repayments has increased does suggest that they are a little 23 00:01:18,440 --> 00:01:21,000 Speaker 2: worried about it. The CFR also commented on lending to 24 00:01:21,040 --> 00:01:25,120 Speaker 2: commercial real estate. Because bank exposures were relatively low, in 25 00:01:25,160 --> 00:01:28,160 Speaker 2: part thanks to conservative lending practices in recent years, and 26 00:01:28,200 --> 00:01:31,960 Speaker 2: because of the relatively strong financial positions of commercial property owners, 27 00:01:32,720 --> 00:01:36,200 Speaker 2: the CFR was less worried really about the commercial real 28 00:01:36,319 --> 00:01:39,800 Speaker 2: estate sector. The quarterly reported prompted Federal treasure Jim Chalmers 29 00:01:39,840 --> 00:01:42,720 Speaker 2: to warn against austerity measures at a time of low 30 00:01:42,760 --> 00:01:45,240 Speaker 2: economic growth and higher interest rates. He said, last week's 31 00:01:45,319 --> 00:01:49,240 Speaker 2: underwhelming GDP figures and the warning yesterday from the Council 32 00:01:49,240 --> 00:01:53,040 Speaker 2: of Financial Regulators shows that it's important that the government 33 00:01:53,120 --> 00:01:55,240 Speaker 2: provides some sort of cost of living relief. 34 00:01:55,840 --> 00:01:59,200 Speaker 1: Now, this part was fascinating, Sean. The report also talked 35 00:01:59,240 --> 00:02:02,440 Speaker 1: about the problems in the cash delivery sector, where the 36 00:02:02,520 --> 00:02:06,040 Speaker 1: near monopoly operator armor Guard is calling for assistance because 37 00:02:06,080 --> 00:02:09,320 Speaker 1: sending trucks around the country is proving uneconomic. 38 00:02:09,800 --> 00:02:12,680 Speaker 2: It's a major challenge for the big banks. Aussie post 39 00:02:12,760 --> 00:02:16,640 Speaker 2: the big retailers, the Reserve being anyone who accepts cash. 40 00:02:17,160 --> 00:02:20,200 Speaker 2: In twenty ten, Michael, around sixty percent of purchases were 41 00:02:20,240 --> 00:02:25,400 Speaker 2: made in cash. Today it's closer to ten percent. Debit cards. 42 00:02:25,440 --> 00:02:29,560 Speaker 2: Is actually where the real search has been. It means 43 00:02:29,600 --> 00:02:32,560 Speaker 2: that with so little cash around the place, it just 44 00:02:32,639 --> 00:02:35,679 Speaker 2: isn't economic to deliver it across the countries in those 45 00:02:35,680 --> 00:02:39,080 Speaker 2: big armor Guard trucks anymore. It's a problem that's been 46 00:02:39,120 --> 00:02:42,000 Speaker 2: going on for months, and the Council of Financial Regulators 47 00:02:42,040 --> 00:02:46,200 Speaker 2: that it's working to ensure sustainable arrangements for cash distribution. 48 00:02:46,520 --> 00:02:49,280 Speaker 2: If you dig a little deeper, the Reserve Bank chairs 49 00:02:49,520 --> 00:02:52,760 Speaker 2: the Working Group on the Future of Cash Distribution. Minutes 50 00:02:52,760 --> 00:02:56,520 Speaker 2: from the last meeting show that the group is developing 51 00:02:56,560 --> 00:03:00,200 Speaker 2: a new model to deliver cash, including coins. The fact 52 00:03:00,200 --> 00:03:03,240 Speaker 2: that they're working on a new model suggests that the 53 00:03:03,360 --> 00:03:07,600 Speaker 2: armor Guard delivery system isn't going to be around for 54 00:03:07,680 --> 00:03:09,560 Speaker 2: that much longer. Now. I have no idea what that 55 00:03:09,639 --> 00:03:12,919 Speaker 2: might be might of armor Guard, obviously, but it doesn't 56 00:03:12,960 --> 00:03:15,920 Speaker 2: look like there's the option anymore of having a private 57 00:03:16,000 --> 00:03:20,480 Speaker 2: company not supported by the government or banks or those 58 00:03:21,000 --> 00:03:25,440 Speaker 2: other organizations that need the delivery of cash it's fascinating 59 00:03:25,480 --> 00:03:26,320 Speaker 2: to watch that one. 60 00:03:26,840 --> 00:03:31,640 Speaker 1: Hopefully the new model involves tubes. Yeah, put the money 61 00:03:31,680 --> 00:03:34,160 Speaker 1: into a tube, it goes and then just. 62 00:03:34,080 --> 00:03:36,839 Speaker 2: Appear a very long tube though, wouldn't it. Oh yeah, 63 00:03:36,960 --> 00:03:39,320 Speaker 2: getting from the Reserve Bank to Perth. 64 00:03:39,640 --> 00:03:42,240 Speaker 1: Yeah, I mean, Sean, I come up with the ideas. 65 00:03:42,640 --> 00:03:45,080 Speaker 1: The execution of those ideas as really I pass it 66 00:03:45,120 --> 00:03:49,560 Speaker 1: on to someone else. I say, hey, Reserve Bank, consider 67 00:03:49,960 --> 00:03:53,440 Speaker 1: tubes you then they'll they'll do the feasibility study. 68 00:03:54,680 --> 00:03:55,960 Speaker 2: Not feasible off we go. 69 00:03:56,120 --> 00:03:57,320 Speaker 1: Oh there you go. But at least it was a 70 00:03:57,320 --> 00:04:00,600 Speaker 1: good idea. Now, local markets, how do they perform? 71 00:04:00,640 --> 00:04:03,880 Speaker 2: Yesterday the S and p ASX two hundred are closed 72 00:04:04,040 --> 00:04:08,360 Speaker 2: down one point three percent to seven seven hundred and 73 00:04:08,400 --> 00:04:10,960 Speaker 2: fifty five points. That's where it went. It went down 74 00:04:11,000 --> 00:04:14,480 Speaker 2: that time, not up down the tube, yep, basically retracing 75 00:04:14,560 --> 00:04:16,920 Speaker 2: much of the surge from last Friday. It's all about 76 00:04:16,920 --> 00:04:20,280 Speaker 2: fears that interest rates will remain high for longer, both 77 00:04:20,279 --> 00:04:22,839 Speaker 2: here and in the United States. The banks were lower yesterday. 78 00:04:22,960 --> 00:04:25,120 Speaker 2: National Australia Bank, AIMS and the Westpac were all down 79 00:04:25,120 --> 00:04:27,680 Speaker 2: around one percent. So to the iron ore miners, we're 80 00:04:27,720 --> 00:04:32,000 Speaker 2: on that shortly, Goodman, Telstra Transerve and QBE Macquari Group CESL. 81 00:04:32,040 --> 00:04:34,880 Speaker 2: They all fell around one percent or more. West Farmers 82 00:04:34,920 --> 00:04:37,640 Speaker 2: was the only top twenty stock to end the day high. 83 00:04:38,120 --> 00:04:41,600 Speaker 2: Local gold miners were particularly hard hit. The price of 84 00:04:41,600 --> 00:04:44,239 Speaker 2: the precious metal dip below twenty three hundred US dollars 85 00:04:44,240 --> 00:04:47,719 Speaker 2: announce over the weekend. That came after those strong jobs 86 00:04:47,760 --> 00:04:51,760 Speaker 2: figures in the US. Companies like West African Resources were 87 00:04:51,880 --> 00:04:54,240 Speaker 2: merely as they were both hit in that seven eight 88 00:04:54,320 --> 00:04:57,240 Speaker 2: nine percent range. Others like some Barbara BELvue Gold and 89 00:04:57,279 --> 00:04:58,919 Speaker 2: Northern Style also dropped sharply. 90 00:04:59,400 --> 00:05:01,200 Speaker 1: And what's happen in international markets? 91 00:05:01,320 --> 00:05:04,040 Speaker 2: Oils training high with Brent back above eighty one US 92 00:05:04,040 --> 00:05:06,760 Speaker 2: dollars of barrel gold came back above that twenty three 93 00:05:06,839 --> 00:05:09,880 Speaker 2: hundred US dollars announced figure. The Aussie dollar is trading 94 00:05:09,880 --> 00:05:12,919 Speaker 2: around sixty six US since the Euro has been sold 95 00:05:12,960 --> 00:05:15,479 Speaker 2: down against the US dollar and against the Aussie dollar 96 00:05:15,560 --> 00:05:19,600 Speaker 2: after gains by far right parties in European parliamentary elections 97 00:05:20,000 --> 00:05:23,240 Speaker 2: over the weekend. But Michael I thought we should have 98 00:05:23,279 --> 00:05:27,599 Speaker 2: a look at the yen this morning. The Japanese yen gone. 99 00:05:28,279 --> 00:05:31,559 Speaker 2: Japanese investors are taking advantage of the very very weak 100 00:05:31,680 --> 00:05:36,520 Speaker 2: yen and selling their holdings of offshore bonds, including Aussie bonds. 101 00:05:36,800 --> 00:05:39,479 Speaker 2: In each of the last six months, Japanese investors have 102 00:05:39,640 --> 00:05:43,760 Speaker 2: sold OSSI federal and state government bonds, according to RBC Markets. 103 00:05:43,839 --> 00:05:46,440 Speaker 2: In fact, over the past twelve months, Japanese has sold 104 00:05:46,480 --> 00:05:50,800 Speaker 2: a cumulative twelve billion dollars of Australian credit, including bonds, 105 00:05:51,279 --> 00:05:55,080 Speaker 2: taking advantage of the week yen. The size of these 106 00:05:55,120 --> 00:05:58,800 Speaker 2: purchases twelve billion dollars, highlights how far the Japanese yen 107 00:05:58,839 --> 00:06:02,119 Speaker 2: has fallen. At its COVID low, one Aussie dollar would 108 00:06:02,120 --> 00:06:06,640 Speaker 2: buy around sixty six yen. Now for one Asi dollar 109 00:06:06,720 --> 00:06:09,880 Speaker 2: you get about one hundred and four yen. It's weak 110 00:06:09,920 --> 00:06:13,120 Speaker 2: against the US dollar most other major currencies. The reason 111 00:06:13,200 --> 00:06:15,360 Speaker 2: is that if you invest in the US, for example, 112 00:06:15,400 --> 00:06:17,400 Speaker 2: at the moment, and a government bond or here in 113 00:06:17,480 --> 00:06:19,719 Speaker 2: a government bond, you might get four or five percent return, 114 00:06:20,320 --> 00:06:23,839 Speaker 2: compared to almost zero in Japan. Now let's bring this 115 00:06:24,040 --> 00:06:26,160 Speaker 2: back to self interest. 116 00:06:26,880 --> 00:06:30,280 Speaker 1: Woll hang on, Wait a second, I'm surprised by this. 117 00:06:30,720 --> 00:06:31,160 Speaker 2: I'll hang on. 118 00:06:31,360 --> 00:06:33,120 Speaker 1: I'm not that Sean Aylmer. Please go on. 119 00:06:33,400 --> 00:06:35,520 Speaker 2: So Jackie and I think of going to Japan later 120 00:06:35,560 --> 00:06:38,360 Speaker 2: in the year, anything you need to go to Japan 121 00:06:38,560 --> 00:06:41,880 Speaker 2: for a long periods. They're going to spend all that money. 122 00:06:41,960 --> 00:06:44,000 Speaker 2: It's actually really quite cheap out there. There are some 123 00:06:44,080 --> 00:06:46,599 Speaker 2: really well isn't that not cheap? That's not true, but 124 00:06:46,640 --> 00:06:49,920 Speaker 2: there are some very very good deals floating around at 125 00:06:49,960 --> 00:06:53,000 Speaker 2: the moment, which actually got me into the whole idea 126 00:06:53,200 --> 00:06:56,280 Speaker 2: of what's the yen worth? And it's fascinating that all 127 00:06:56,320 --> 00:06:58,840 Speaker 2: these investors who have bought all these ASIE bonds are 128 00:06:58,839 --> 00:07:02,680 Speaker 2: selling it. The yen is incredibly weak and we can 129 00:07:02,720 --> 00:07:03,800 Speaker 2: get cheap holidays. 130 00:07:04,160 --> 00:07:07,320 Speaker 1: I'd like to congratulate you on concealing your self interest 131 00:07:07,440 --> 00:07:10,840 Speaker 1: so well within what is a genuinely interesting news story. 132 00:07:10,880 --> 00:07:13,760 Speaker 2: Sure, yes, yes, yes, thanks Michael, I appreciate I'm. 133 00:07:13,720 --> 00:07:15,960 Speaker 1: Very good at this. Just a quick mention, Sean. He 134 00:07:16,000 --> 00:07:19,280 Speaker 1: got a great interview coming up after the show today 135 00:07:19,280 --> 00:07:23,960 Speaker 1: with Samantha McCulloch, the chief executive of the Australian Energy Producers, 136 00:07:23,960 --> 00:07:25,120 Speaker 1: a supporter of this podcast. 137 00:07:25,720 --> 00:07:29,480 Speaker 2: Yes, so the Energy Producers look after the gas industry, 138 00:07:29,600 --> 00:07:31,800 Speaker 2: the peak body for the gas industry, as well as 139 00:07:31,800 --> 00:07:34,760 Speaker 2: other players, and our focus today is very much on 140 00:07:34,840 --> 00:07:37,520 Speaker 2: gas and the need for gas to be a transition 141 00:07:38,240 --> 00:07:42,640 Speaker 2: energy or energy source as we move to renewables. There's 142 00:07:42,640 --> 00:07:46,720 Speaker 2: no argument about the need to remove to renewables, but 143 00:07:47,000 --> 00:07:49,320 Speaker 2: how we get there is really where the debate sits, 144 00:07:49,360 --> 00:07:52,720 Speaker 2: and so we talk to her all about what the 145 00:07:52,880 --> 00:07:55,400 Speaker 2: energy producers are doing to help that transition. 146 00:07:55,680 --> 00:07:57,720 Speaker 1: Yeah, it is a good interview. It's coming up after 147 00:07:57,760 --> 00:08:00,239 Speaker 1: the show. Something else that's coming up after the show, 148 00:08:00,280 --> 00:08:02,440 Speaker 1: Sean kind of in a couple of hours time. Really 149 00:08:02,520 --> 00:08:05,520 Speaker 1: is the Fear and Greed newsletter out mid morning this morning? 150 00:08:06,080 --> 00:08:09,880 Speaker 1: Head along to Fearangreed dot com dot au right now, 151 00:08:10,000 --> 00:08:12,480 Speaker 1: don't delay, put your email address in and you will 152 00:08:12,480 --> 00:08:15,440 Speaker 1: get the newsletter when it drops in a few hours, 153 00:08:15,480 --> 00:08:18,000 Speaker 1: full of your opinions, your views on a whole bunch 154 00:08:18,320 --> 00:08:20,280 Speaker 1: of the big news stories of the week. 155 00:08:20,520 --> 00:08:24,680 Speaker 2: From markets to the economy to Donald Trump using TikTok. 156 00:08:24,880 --> 00:08:27,000 Speaker 1: Head along to Fearangreed dot com today you so that 157 00:08:27,080 --> 00:08:29,040 Speaker 1: you don't miss out. We'll be back in a moment 158 00:08:29,080 --> 00:08:37,960 Speaker 1: with the rest of the day's business news. Sean private 159 00:08:37,960 --> 00:08:41,120 Speaker 1: equity group Bane Capital has made a one point eighty 160 00:08:41,160 --> 00:08:45,080 Speaker 1: three billion dollar bid for bapcoor, the automotive parts retailer 161 00:08:45,120 --> 00:08:46,160 Speaker 1: that owns Autobarn. 162 00:08:46,520 --> 00:08:49,800 Speaker 2: It also owns Auto Proberson and Minas chains and has 163 00:08:49,800 --> 00:08:52,679 Speaker 2: about eleven hundred outlets selling car pass to mechanics and 164 00:08:52,720 --> 00:08:57,040 Speaker 2: fans of motoring. The unsolicited conditional bid of five dollars 165 00:08:57,080 --> 00:08:59,880 Speaker 2: forty a share it's a twenty four percent premium to 166 00:08:59,920 --> 00:09:02,120 Speaker 2: the group's share price when it closed last Friday, but 167 00:09:02,160 --> 00:09:05,400 Speaker 2: well below its peak of six twenty nine in April 168 00:09:05,480 --> 00:09:09,079 Speaker 2: and more than seven dollars last year. Bavcor closed up 169 00:09:09,200 --> 00:09:12,480 Speaker 2: fourteen percent to four ninety seven yesterday. The group has 170 00:09:12,520 --> 00:09:14,760 Speaker 2: had a shocker, that's the only way to put it. 171 00:09:14,760 --> 00:09:17,480 Speaker 2: It's downgraded its earnings outlook three times in the past year, 172 00:09:17,520 --> 00:09:20,439 Speaker 2: most recently in May, when it's disclosure sent its share 173 00:09:20,480 --> 00:09:24,640 Speaker 2: price down thirty five percent in one session. The group's 174 00:09:24,679 --> 00:09:27,800 Speaker 2: been hit by the downturn and consumer confidence, as well 175 00:09:27,840 --> 00:09:31,040 Speaker 2: as a bunch of management changes. The long term CEO 176 00:09:31,160 --> 00:09:32,959 Speaker 2: was forced out in May twenty twenty one. The next 177 00:09:33,120 --> 00:09:36,040 Speaker 2: year I left two years later. His success had changed 178 00:09:36,080 --> 00:09:39,480 Speaker 2: his mind about taking the job twenty four hours before 179 00:09:39,480 --> 00:09:42,679 Speaker 2: he was meant to start. Anyway, its share price has 180 00:09:42,720 --> 00:09:45,800 Speaker 2: been depressed. This bit has come in now, which looks 181 00:09:45,880 --> 00:09:49,280 Speaker 2: like a pretty good premium to the closing price twenty 182 00:09:49,280 --> 00:09:53,840 Speaker 2: four percent However, it is still way below what the 183 00:09:53,840 --> 00:09:56,400 Speaker 2: group was trading at the beginning of April. 184 00:09:56,640 --> 00:09:59,640 Speaker 1: Business confidence and investment has been one of the shining 185 00:09:59,720 --> 00:10:03,559 Speaker 1: lights in the economy Sewan, but sentiment has turned negative 186 00:10:03,720 --> 00:10:06,400 Speaker 1: and trading conditions and profitability have been weakening. 187 00:10:06,720 --> 00:10:09,880 Speaker 2: Business confidence is now negative and below the long run average, 188 00:10:09,920 --> 00:10:13,640 Speaker 2: with retail, recreation and personal services and wholesale businesses all 189 00:10:13,679 --> 00:10:16,520 Speaker 2: in the red. Confidence in finance, business and property as 190 00:10:16,520 --> 00:10:20,440 Speaker 2: a group remains positive. Business conditions, as opposed to sentiment, 191 00:10:20,679 --> 00:10:23,400 Speaker 2: has also slipped below the long run average, with forward 192 00:10:23,559 --> 00:10:28,520 Speaker 2: orders deeply negative in retail, wholesale and construction. Many companies 193 00:10:28,520 --> 00:10:30,800 Speaker 2: in those sectors just don't have a full colunder of 194 00:10:30,840 --> 00:10:33,760 Speaker 2: work for the coming months. The National Australia Bank May 195 00:10:33,840 --> 00:10:37,560 Speaker 2: Business Survey shows that the slowdown demonstrated in last week's 196 00:10:37,559 --> 00:10:41,240 Speaker 2: March quarter economic growth data has very much continued into 197 00:10:41,280 --> 00:10:44,400 Speaker 2: the current quarter. That's bad news. The survey gives great 198 00:10:44,440 --> 00:10:47,199 Speaker 2: insight into different parts of the economy. There isn't much 199 00:10:47,240 --> 00:10:51,520 Speaker 2: good news on the inflation front. Capacity utilization remains above average, 200 00:10:51,920 --> 00:10:54,960 Speaker 2: and there are still costs and price pressures within sectors. 201 00:10:55,040 --> 00:10:58,600 Speaker 2: So while growth slowed, supply and demand isn't quite yet 202 00:10:58,640 --> 00:11:01,960 Speaker 2: back in balance. The National Australian Bank Chief economist Alan 203 00:11:02,000 --> 00:11:06,280 Speaker 2: Osta reckons inflation will continue to moderate, but only gradually 204 00:11:06,360 --> 00:11:06,880 Speaker 2: from here. 205 00:11:07,720 --> 00:11:10,200 Speaker 1: Saw on the iron all mine as BHP, fortes Kew 206 00:11:10,240 --> 00:11:13,400 Speaker 1: Medals and Rio Tinto all fell sharply yesterday as the 207 00:11:13,440 --> 00:11:15,040 Speaker 1: commodity hit a two months low. 208 00:11:15,520 --> 00:11:18,160 Speaker 2: As we know, fort Skew Metals group in particular is 209 00:11:18,200 --> 00:11:20,599 Speaker 2: driven by iron ore prices, and given the ore is 210 00:11:20,640 --> 00:11:23,720 Speaker 2: the biggest export of BHP and Rio Tinto as well, 211 00:11:23,760 --> 00:11:26,920 Speaker 2: it has a fair influence in their share prices. After 212 00:11:26,960 --> 00:11:29,160 Speaker 2: peaking above one hundred and forty US dollars a ton 213 00:11:29,240 --> 00:11:32,240 Speaker 2: earlier in the year, iron ore prices dropped below one 214 00:11:32,320 --> 00:11:35,480 Speaker 2: hundred US dollars a ton briefly, then recovered to about 215 00:11:35,520 --> 00:11:37,559 Speaker 2: one hundred and twenty US dollars a ton. Now it's 216 00:11:37,559 --> 00:11:40,520 Speaker 2: back to around one hundred and five US dollars a ton. Generally, 217 00:11:40,600 --> 00:11:43,840 Speaker 2: it rises and falls and expectations about what's happening in China, 218 00:11:43,840 --> 00:11:46,040 Speaker 2: where the Beijing is going to stimulate the economy or 219 00:11:46,200 --> 00:11:49,160 Speaker 2: say the property market or whatever. Iron or of course 220 00:11:49,240 --> 00:11:52,400 Speaker 2: is used in steel making, so if Beijing puts money 221 00:11:52,440 --> 00:11:56,360 Speaker 2: into the economy, the manufacturers start producing more steel good 222 00:11:56,360 --> 00:11:59,559 Speaker 2: for iron ore. Chinese growth forecasts have actually been a 223 00:11:59,600 --> 00:12:02,360 Speaker 2: little bit more upbeat recently. That helped the turnaround in 224 00:12:02,360 --> 00:12:06,520 Speaker 2: all prices. But sentiment has really shifted over the past fortnite, 225 00:12:06,520 --> 00:12:09,880 Speaker 2: nothing more than on Friday last week when China State 226 00:12:09,920 --> 00:12:12,920 Speaker 2: Planner issued a special Action Plan on conserving energy and 227 00:12:13,040 --> 00:12:16,800 Speaker 2: reducing carbon emissions in the steel sector. That isn't good 228 00:12:17,040 --> 00:12:21,400 Speaker 2: news for BHP, PHOTOCECUW Metals or Rio Tinto No, perhaps 229 00:12:21,440 --> 00:12:22,319 Speaker 2: not now. 230 00:12:22,720 --> 00:12:26,319 Speaker 1: Sean oppositionally to Peter Dutton yesterday said that the coalition 231 00:12:26,600 --> 00:12:30,280 Speaker 1: won't put forward a new twenty thirty emissions reduction target 232 00:12:30,640 --> 00:12:32,520 Speaker 1: until after the next election. 233 00:12:32,880 --> 00:12:35,880 Speaker 2: He refused to say if the coalition would produce a 234 00:12:35,960 --> 00:12:38,839 Speaker 2: lower twenty thirty target than the government, even though over 235 00:12:38,880 --> 00:12:41,079 Speaker 2: the weekend he said he'd go to the next election 236 00:12:41,160 --> 00:12:45,239 Speaker 2: opposing the alban Easy government's goal of decreasing carbon emissions 237 00:12:45,559 --> 00:12:48,800 Speaker 2: by forty three percent compared to the two thousand and 238 00:12:48,840 --> 00:12:51,960 Speaker 2: five baseline. He did say this is Mister Dutton did 239 00:12:51,960 --> 00:12:54,560 Speaker 2: say the Lives were committed to net zero by twenty fifty. 240 00:12:54,800 --> 00:12:57,320 Speaker 2: The fact that mister Dutton is equivocating on targets pretty 241 00:12:57,360 --> 00:13:01,160 Speaker 2: much guarantees energy policy will be they fairly big election 242 00:13:01,280 --> 00:13:03,120 Speaker 2: issue in the run up to the next Poell Michael, 243 00:13:03,160 --> 00:13:05,480 Speaker 2: which of course is due in less than twelve months. 244 00:13:06,160 --> 00:13:09,440 Speaker 1: Sean, What does the business community make of this? Because 245 00:13:10,040 --> 00:13:11,720 Speaker 1: one of the many things that you're taught me on 246 00:13:11,760 --> 00:13:17,000 Speaker 1: this podcast is how important certainty is for business, and 247 00:13:17,080 --> 00:13:20,160 Speaker 1: one of the main features of this kind of net 248 00:13:20,240 --> 00:13:23,920 Speaker 1: zero commitment by twenty fifty and the reduction by twenty 249 00:13:24,000 --> 00:13:26,959 Speaker 1: thirty was at least there was a clearly defined kind 250 00:13:27,000 --> 00:13:30,000 Speaker 1: of roadmap of what business needed to work towards. Does 251 00:13:30,040 --> 00:13:32,360 Speaker 1: this add a bit more uncertainty into it for business? 252 00:13:33,080 --> 00:13:35,760 Speaker 2: I think it does. I think that most people think 253 00:13:36,040 --> 00:13:40,120 Speaker 2: the government will win the next election whenever that is, 254 00:13:40,720 --> 00:13:46,520 Speaker 2: so it's probably not hugely worrying to business. But at 255 00:13:46,559 --> 00:13:49,240 Speaker 2: the end of the day, they just prefer the two 256 00:13:49,320 --> 00:13:52,840 Speaker 2: parties to agree on what's going to happen, particularly in 257 00:13:52,840 --> 00:13:56,200 Speaker 2: these policy areas which we measure in decades, not in 258 00:13:56,280 --> 00:13:59,080 Speaker 2: months or even years, but in decades. So the whole 259 00:13:59,120 --> 00:14:03,480 Speaker 2: idea of certain around what we're going to require out 260 00:14:03,480 --> 00:14:07,400 Speaker 2: of the energy companies, I think that is really critical 261 00:14:07,480 --> 00:14:08,240 Speaker 2: to all business. 262 00:14:08,559 --> 00:14:11,280 Speaker 1: Okay, that makes sense. One last one before we get 263 00:14:11,280 --> 00:14:14,360 Speaker 1: to international news Queensland's budget was released yesterday and there's 264 00:14:14,400 --> 00:14:17,280 Speaker 1: plenty of big spending initiatives ahead of the state election 265 00:14:17,360 --> 00:14:17,960 Speaker 1: in October. 266 00:14:18,280 --> 00:14:20,520 Speaker 2: Yeah, talking about poles, this one was just like a 267 00:14:20,640 --> 00:14:23,960 Speaker 2: last ditch effort to nervous and support the poles. Do 268 00:14:24,200 --> 00:14:28,360 Speaker 2: not look good for the governing Labor government. There there's 269 00:14:28,400 --> 00:14:30,960 Speaker 2: plenty of handouts in the budget announced yesterday and a 270 00:14:31,000 --> 00:14:35,200 Speaker 2: freeze on government fees and charges. As a result, Queensland 271 00:14:35,200 --> 00:14:38,520 Speaker 2: will swing back into debt next financial year. The handouts 272 00:14:38,560 --> 00:14:41,720 Speaker 2: include a one thousand dollars energy rebate, cutting public transport 273 00:14:41,760 --> 00:14:46,120 Speaker 2: costs of fifty cents, reducing car registration fees by twenty percent, 274 00:14:46,440 --> 00:14:48,920 Speaker 2: and increasing the first home by a stamp duty concession. 275 00:14:49,200 --> 00:14:52,480 Speaker 2: Treasure Cameron Dick said the government has made a deliberate 276 00:14:52,560 --> 00:14:55,320 Speaker 2: choice to put the budget into deficit to help keep 277 00:14:55,360 --> 00:14:59,120 Speaker 2: household budgets in balance. Nice line, Yeah, all right. 278 00:14:59,160 --> 00:15:02,040 Speaker 1: Turning to international news now, and Apple has taken the 279 00:15:02,040 --> 00:15:05,840 Speaker 1: wraps off its long awaited new artificial intelligence features for 280 00:15:05,880 --> 00:15:09,560 Speaker 1: its devices and sure and the response was a little underwhelming. 281 00:15:09,840 --> 00:15:13,160 Speaker 2: Well it was that maybe that's slightly unfair because really 282 00:15:13,160 --> 00:15:15,880 Speaker 2: it wasn't like they didn't quite do the big bang 283 00:15:16,000 --> 00:15:18,800 Speaker 2: thing that Apple does, or that everyone else has done. 284 00:15:19,120 --> 00:15:23,400 Speaker 2: They what. The centerpiece is a partnership with chat GPT 285 00:15:23,600 --> 00:15:28,640 Speaker 2: maker open Ai and a new AI platform called Apple Intelligence. 286 00:15:29,080 --> 00:15:32,480 Speaker 2: The group's Worldwide Developers conference also included updates to the 287 00:15:32,480 --> 00:15:36,920 Speaker 2: iPhone makers' operating systems. Now the AI technology will be 288 00:15:37,040 --> 00:15:41,840 Speaker 2: available in smartphones. It will help summarize text, create original images, 289 00:15:42,240 --> 00:15:45,520 Speaker 2: and retrieve the most relevant data when newsers need it. 290 00:15:45,800 --> 00:15:49,200 Speaker 2: According to Apple, The push also includes a revamped version 291 00:15:49,320 --> 00:15:53,120 Speaker 2: of Siri. The partnership with open Ai will let customers 292 00:15:53,200 --> 00:15:58,480 Speaker 2: access chat GPT via Siri at no extra cost. Apple 293 00:15:58,560 --> 00:16:02,160 Speaker 2: Intelligence will begin rolling out later this year, but some features, 294 00:16:02,200 --> 00:16:05,720 Speaker 2: including the ability for Siri to precisely control features within apps, 295 00:16:06,040 --> 00:16:09,000 Speaker 2: they won't come until next year. It'll come out initially 296 00:16:09,120 --> 00:16:12,920 Speaker 2: in English only. It's just sort of I mean, I 297 00:16:12,920 --> 00:16:15,200 Speaker 2: think it all sounds great. Actually, we need to talk 298 00:16:15,240 --> 00:16:17,920 Speaker 2: to someone about this who's more of a faie than I am. 299 00:16:18,280 --> 00:16:21,400 Speaker 2: But it does all sound very good. It's just it 300 00:16:21,440 --> 00:16:23,960 Speaker 2: wasn't really a big bang launch, and I think most 301 00:16:24,000 --> 00:16:25,480 Speaker 2: people expected something more. 302 00:16:26,120 --> 00:16:29,840 Speaker 1: Maybe that's because it's the developer's conference rather than the 303 00:16:29,960 --> 00:16:34,160 Speaker 1: kind of product launches, you know, the marketing conference. Yeah, yeah, indeed. Yeah, 304 00:16:34,400 --> 00:16:38,600 Speaker 1: but you know what sewn, if I could have, and 305 00:16:38,640 --> 00:16:40,800 Speaker 1: I do hope the team at Apple are listening right now. 306 00:16:41,080 --> 00:16:43,160 Speaker 2: Absolutely now, if Siri could. 307 00:16:43,080 --> 00:16:45,480 Speaker 1: Do one thing that would make my life a little 308 00:16:45,480 --> 00:16:49,080 Speaker 1: bit easier, it would read an email to you. Have 309 00:16:49,200 --> 00:16:51,800 Speaker 1: you ever had that like where perhaps you're driving and 310 00:16:51,840 --> 00:16:54,120 Speaker 1: you're waiting on an email and you're not going to 311 00:16:54,160 --> 00:16:57,080 Speaker 1: pull over to check and obviously you're not going to 312 00:16:57,120 --> 00:16:59,440 Speaker 1: check it while they're driving, and you ask Siri, go, hey, 313 00:16:59,480 --> 00:17:02,400 Speaker 1: can you read my emails? And they just kind of 314 00:17:02,440 --> 00:17:04,240 Speaker 1: rattle off a list of the last twenty five and 315 00:17:04,280 --> 00:17:06,760 Speaker 1: the email that you need is in there. But if 316 00:17:06,760 --> 00:17:09,399 Speaker 1: it actually then read the email to you, goodness me, 317 00:17:09,480 --> 00:17:11,760 Speaker 1: that would save me a good forty seconds about every 318 00:17:11,760 --> 00:17:12,359 Speaker 1: three weeks. 319 00:17:12,520 --> 00:17:15,000 Speaker 2: I do all my texting while I'm drivings. That's true, 320 00:17:15,040 --> 00:17:16,119 Speaker 2: I haven't thought about email. 321 00:17:16,680 --> 00:17:19,200 Speaker 1: Yes, just to clarify, you do that using Siri, right, 322 00:17:19,240 --> 00:17:19,680 Speaker 1: using Siri? 323 00:17:19,800 --> 00:17:24,439 Speaker 2: Yeah? Absolutely, ye, sirih for texts. Absolutely, that's a great idea, Michael. 324 00:17:24,800 --> 00:17:27,400 Speaker 1: I'm just I mean, I'm prepared to donate that one 325 00:17:27,440 --> 00:17:29,320 Speaker 1: to Apple if they want to include it. 326 00:17:29,680 --> 00:17:31,560 Speaker 2: That's very big of you. There you go. 327 00:17:32,440 --> 00:17:36,199 Speaker 1: Sewan Singapore Airlines has offered ten thousand US dollars in 328 00:17:36,240 --> 00:17:40,359 Speaker 1: compensation to passengers who sustained minor injuries during a flight 329 00:17:40,480 --> 00:17:42,280 Speaker 1: that hit extreme turbulence last month. 330 00:17:42,440 --> 00:17:45,480 Speaker 2: The airline has also offered to individually discuss compensation for 331 00:17:45,560 --> 00:17:49,240 Speaker 2: those who sustained more serious injuries. Those recovering from serious 332 00:17:49,280 --> 00:17:51,800 Speaker 2: injury have been offered an advanced payment of twenty five 333 00:17:51,840 --> 00:17:55,080 Speaker 2: thousand dollars to address their immediate needs. The airline also 334 00:17:55,119 --> 00:17:57,960 Speaker 2: apologized for what it called the traumatic experience on board 335 00:17:57,960 --> 00:18:01,359 Speaker 2: flight SQ three two one remember last month. A seventy 336 00:18:01,400 --> 00:18:04,240 Speaker 2: three year old British Man died in the event. Several 337 00:18:04,280 --> 00:18:06,359 Speaker 2: dozen of the two hundred and twenty nine passengers and 338 00:18:06,400 --> 00:18:09,800 Speaker 2: crew on board was severely hurt, ranging from spinal to 339 00:18:10,040 --> 00:18:13,680 Speaker 2: skull injuries. All passengers aboard the ill fated flight will 340 00:18:13,720 --> 00:18:16,439 Speaker 2: receive a refund of their airfare fair enough, as well 341 00:18:16,480 --> 00:18:19,480 Speaker 2: as playouts up to nine hundred US dollars for the 342 00:18:19,520 --> 00:18:22,679 Speaker 2: delay to their journey, in line with European Union rules. 343 00:18:22,920 --> 00:18:25,040 Speaker 2: The payments are in addition to the seven hundred and 344 00:18:25,080 --> 00:18:27,520 Speaker 2: thirty nine at US dollars at the airline already paid 345 00:18:27,560 --> 00:18:30,560 Speaker 2: out to passengers to cover initial expenses after the incident. 346 00:18:31,080 --> 00:18:34,360 Speaker 2: It looks like anyone who sustained a minor injury will 347 00:18:34,440 --> 00:18:36,719 Speaker 2: end up with at least ten thousand US dollars. 348 00:18:37,119 --> 00:18:39,679 Speaker 1: Okay, sawn. Up next is the Fear and Greed Daily Interview. 349 00:18:39,840 --> 00:18:44,440 Speaker 1: You're speaking with Samantha McCullough, chief executive of Australian Energy Producers. 350 00:18:44,240 --> 00:18:47,960 Speaker 2: All about using gas in the transition to renewables. It 351 00:18:48,119 --> 00:18:50,640 Speaker 2: is a great chat. She certainly knows her stuff, sam 352 00:18:50,840 --> 00:18:52,240 Speaker 2: and a lovely person to b Yeah. 353 00:18:52,240 --> 00:18:53,960 Speaker 1: Absolutely. That is up next to the Fair and Gred 354 00:18:53,960 --> 00:18:57,639 Speaker 1: playlist on your podcast platform or at Fearangreed dot com todau, 355 00:18:57,680 --> 00:19:00,159 Speaker 1: which is where you can sign up for Today's and 356 00:19:00,200 --> 00:19:02,960 Speaker 1: Greed newsletter out mid morning. And if you're looking for 357 00:19:03,000 --> 00:19:06,199 Speaker 1: something else to listen to, why not give how do 358 00:19:06,240 --> 00:19:06,879 Speaker 1: they afford that? 359 00:19:06,920 --> 00:19:07,200 Speaker 2: To go? 360 00:19:07,240 --> 00:19:10,560 Speaker 1: There is a newer episode of our sister podcast out 361 00:19:10,680 --> 00:19:14,920 Speaker 1: every Wednesday, and today's episode, Sean is about the top 362 00:19:15,160 --> 00:19:20,400 Speaker 1: ten financial mistakes to avoid, particularly in your twenties and thirties, 363 00:19:20,400 --> 00:19:22,560 Speaker 1: but also into your forties and fifties. But they are 364 00:19:22,600 --> 00:19:25,240 Speaker 1: the ones that like from kind of relying on toxic 365 00:19:25,280 --> 00:19:27,879 Speaker 1: debt to ignoring your credit score early in life and 366 00:19:27,960 --> 00:19:31,080 Speaker 1: kind of not taking advantage of the opportunities in your 367 00:19:31,080 --> 00:19:34,160 Speaker 1: twenties and thirties to set yourself up for perhaps financial 368 00:19:34,240 --> 00:19:36,240 Speaker 1: independence later in life. So it is a good one 369 00:19:36,240 --> 00:19:37,680 Speaker 1: if you're in those age brackets. 370 00:19:37,760 --> 00:19:40,240 Speaker 2: Not so good for we oldies who just go and 371 00:19:40,280 --> 00:19:42,880 Speaker 2: think missed opportunities left Ryan center here. 372 00:19:43,359 --> 00:19:45,720 Speaker 1: No, no, no, Sean, it would be. It's very much 373 00:19:45,760 --> 00:19:48,639 Speaker 1: relevant to you because you have kids in those age groups. 374 00:19:50,160 --> 00:19:52,120 Speaker 2: That just makes me even them. None of my kids 375 00:19:52,160 --> 00:19:53,600 Speaker 2: are in those ages. He goes, Come, I give me 376 00:19:53,640 --> 00:19:54,000 Speaker 2: a break. 377 00:19:54,920 --> 00:19:57,280 Speaker 1: Some of them are nearing their twenties. 378 00:19:57,359 --> 00:20:01,560 Speaker 2: Right, that's true. There you go. See, Okay, okay, indication. 379 00:20:01,840 --> 00:20:03,920 Speaker 2: I'll be listening. I'll be listening. Don't worry. 380 00:20:04,000 --> 00:20:06,160 Speaker 1: Oh and you sound like you'll be happy to do it. 381 00:20:06,359 --> 00:20:07,919 Speaker 1: Thank you very much, Sean, Thank you. 382 00:20:07,960 --> 00:20:08,320 Speaker 2: Michael. 383 00:20:08,440 --> 00:20:11,120 Speaker 1: It is Wednesday, the twelfth of June twenty twenty four. 384 00:20:11,520 --> 00:20:13,879 Speaker 1: Make sure you're following the podcast and please join us 385 00:20:13,880 --> 00:20:18,120 Speaker 1: online on LinkedIn, Instagram, x TikTok and Facebook. Michael Thompson 386 00:20:18,160 --> 00:20:22,480 Speaker 1: and our spear and Greed have a great day.