1
00:00:03,920 --> 00:00:07,160
Speaker 1: It's Wednesday, the fifteenth of May twenty twenty four. Welcome

2
00:00:07,200 --> 00:00:09,680
Speaker 1: to the Fast five Business News by Fear and Greed,

3
00:00:09,680 --> 00:00:11,600
Speaker 1: where we give you the top five business stories you

4
00:00:11,680 --> 00:00:14,200
Speaker 1: need to know in just five minutes. I'm Michael Thompson

5
00:00:14,240 --> 00:00:15,680
Speaker 1: and good morning Sean Aylmer.

6
00:00:16,040 --> 00:00:17,760
Speaker 2: Good morning, Michael, Seawan.

7
00:00:17,880 --> 00:00:20,279
Speaker 1: Five stories to get through in five minutes, and the

8
00:00:20,320 --> 00:00:23,160
Speaker 1: first story is a very big one. The federal government

9
00:00:23,239 --> 00:00:26,520
Speaker 1: has announced cost of living measures, including three hundred dollars

10
00:00:26,600 --> 00:00:30,280
Speaker 1: in power bild discounts for every household, and a second

11
00:00:30,320 --> 00:00:31,760
Speaker 1: straight budget surplus.

12
00:00:32,120 --> 00:00:35,440
Speaker 2: Yes, Treasurer Jim Chalmers delivered his third budget, second straight surplus.

13
00:00:35,479 --> 00:00:38,440
Speaker 2: As you mentioned that hasn't happened in two decades. The

14
00:00:38,479 --> 00:00:41,400
Speaker 2: centerpiece was cost of living relief, including three hundred dollars

15
00:00:41,400 --> 00:00:43,360
Speaker 2: for every household and three hundred and twenty five dollars

16
00:00:43,400 --> 00:00:47,479
Speaker 2: for many small businesses to offset energy costs. That's a rebate,

17
00:00:47,680 --> 00:00:51,000
Speaker 2: not a handout. There's also rent assistance, which combined with

18
00:00:51,080 --> 00:00:54,040
Speaker 2: the energy measures, should lower inflation by at least half

19
00:00:54,080 --> 00:00:57,000
Speaker 2: a percentage point. There's also big spending on wage increases

20
00:00:57,040 --> 00:00:58,960
Speaker 2: in the care sector and a jump in defense spending.

21
00:00:59,200 --> 00:01:02,160
Speaker 2: The Future made an Australia strategy includes thirteen billion dollars

22
00:01:02,200 --> 00:01:05,400
Speaker 2: in production tax credits for critical mineral extraction in clean

23
00:01:05,480 --> 00:01:08,520
Speaker 2: hydrogen production. The bottom line this year comes in as

24
00:01:08,520 --> 00:01:11,720
Speaker 2: a nine point three billion dollar surplus, though Big def

25
00:01:11,760 --> 00:01:13,800
Speaker 2: sets about one hundred and twelve billion dollars over the

26
00:01:13,800 --> 00:01:17,240
Speaker 2: next four years are forecasts. The government says the inflation

27
00:01:17,360 --> 00:01:19,200
Speaker 2: rate will fall to within the Reserve Banks two to

28
00:01:19,240 --> 00:01:22,839
Speaker 2: three percent target range this year. It's downgraded its growth

29
00:01:22,880 --> 00:01:25,840
Speaker 2: forecast to just one point seventy five percent this financial year,

30
00:01:25,840 --> 00:01:27,920
Speaker 2: though in two percent next financial year.

31
00:01:28,400 --> 00:01:31,360
Speaker 1: What do you reckon? Sean good budget, bad budget? Maybe

32
00:01:31,360 --> 00:01:32,319
Speaker 1: an election budget?

33
00:01:32,600 --> 00:01:36,000
Speaker 2: Ah, maybe plenty of things that voters might like over

34
00:01:36,040 --> 00:01:38,679
Speaker 2: the next twelve months. Of course, the election is due

35
00:01:38,760 --> 00:01:41,880
Speaker 2: sometime before May next year. We have money for energy

36
00:01:41,920 --> 00:01:45,040
Speaker 2: costs and an inflation rate within the Reserve Banks target range.

37
00:01:45,120 --> 00:01:48,040
Speaker 2: I maybe they'll move on interest rates labored like that.

38
00:01:48,520 --> 00:01:50,880
Speaker 2: Stage three tax cuts won't hurt the government either, nor

39
00:01:50,920 --> 00:01:54,120
Speaker 2: will the extra rent assistance, the help with the hex

40
00:01:54,240 --> 00:01:56,400
Speaker 2: debt or the help with the help debt. There's also

41
00:01:56,480 --> 00:01:59,000
Speaker 2: a bunch of future made in Australian incentives. Although they

42
00:01:59,000 --> 00:02:01,640
Speaker 2: do kicking later on, probably won't affect the election cycle

43
00:02:01,840 --> 00:02:05,480
Speaker 2: too much. Basically, the government can do it because there's

44
00:02:05,600 --> 00:02:08,840
Speaker 2: plenty of revenue, plus spending on welfare payments is much

45
00:02:08,880 --> 00:02:12,119
Speaker 2: lower than expected. Much of the big spending items don't

46
00:02:12,120 --> 00:02:14,520
Speaker 2: occur for at least twelve months. That's why you get

47
00:02:14,520 --> 00:02:17,640
Speaker 2: this budget surplus this time around. Bottom line here is

48
00:02:17,639 --> 00:02:19,519
Speaker 2: the government will make things better in the short term,

49
00:02:19,560 --> 00:02:22,160
Speaker 2: which is the electioneer, even if they've probably got a

50
00:02:22,160 --> 00:02:24,000
Speaker 2: few challenges on their hands after that.

51
00:02:24,760 --> 00:02:27,080
Speaker 1: All right, onto story number two now, which is linked

52
00:02:27,120 --> 00:02:29,120
Speaker 1: to story number one because it's also out of canber

53
00:02:29,280 --> 00:02:32,480
Speaker 1: Prime Minister Anthony Alberanezi says Labor will cut the immigration

54
00:02:32,600 --> 00:02:36,040
Speaker 1: intake to below three hundred thousand, down from the record

55
00:02:36,080 --> 00:02:38,400
Speaker 1: five hundred and forty eight thousand intake in the year

56
00:02:38,440 --> 00:02:39,840
Speaker 1: to September twenty twenty three.

57
00:02:40,440 --> 00:02:43,440
Speaker 2: Jump in international students and temporary workers pushed up arrivals

58
00:02:43,520 --> 00:02:45,720
Speaker 2: last year and the surge is probably already peaked. And

59
00:02:45,760 --> 00:02:48,000
Speaker 2: your population growth for the September quarter hit two and

60
00:02:48,000 --> 00:02:50,320
Speaker 2: a half percent, the highest in more than seventy years.

61
00:02:50,360 --> 00:02:53,040
Speaker 2: Mister alban Easy said the government wants to bring immigration

62
00:02:53,120 --> 00:02:56,120
Speaker 2: down to about half that level. As part of last

63
00:02:56,160 --> 00:02:58,960
Speaker 2: night's budget, the government outlined ways in which it hopes

64
00:02:59,000 --> 00:03:01,840
Speaker 2: to reduce numbers, hitting a clamp down on integrity measures

65
00:03:01,880 --> 00:03:04,480
Speaker 2: for students in higher education. Mistra alben easy. He said

66
00:03:04,480 --> 00:03:06,880
Speaker 2: it's important that people travel to Australia to be educated,

67
00:03:07,080 --> 00:03:08,840
Speaker 2: but he doesn't want them gaming the system.

68
00:03:09,240 --> 00:03:12,360
Speaker 1: Story number three, Quantas is going to stop its direct

69
00:03:12,400 --> 00:03:15,239
Speaker 1: flights to mainland China due to a lack of demand

70
00:03:15,400 --> 00:03:18,840
Speaker 1: as tourists from the world's second most populous nation stay

71
00:03:18,880 --> 00:03:20,160
Speaker 1: away from Australia.

72
00:03:20,280 --> 00:03:23,280
Speaker 2: In July last year, Quantus relaunched at Sydney Chang High Route,

73
00:03:23,320 --> 00:03:25,320
Speaker 2: but yesterday said a lack of demand meant they're going

74
00:03:25,360 --> 00:03:27,800
Speaker 2: to close it down. Planes on the route were often

75
00:03:27,919 --> 00:03:30,920
Speaker 2: just half full. Now to rely on its partners and

76
00:03:30,960 --> 00:03:33,400
Speaker 2: flights to Hong Kong to ferry people to mainland China.

77
00:03:33,720 --> 00:03:36,680
Speaker 2: The route will be replaced by a Brisbane to Manila flight.

78
00:03:37,240 --> 00:03:40,160
Speaker 2: All this came as he Bureau of Statistics released figures

79
00:03:40,160 --> 00:03:43,200
Speaker 2: that show visitors from China are just thirty seven percent

80
00:03:43,280 --> 00:03:46,400
Speaker 2: of pre COVID levels. It's a pretty bad number in

81
00:03:46,440 --> 00:03:49,440
Speaker 2: what's actually a much more upbeat look at tourism in Australia.

82
00:03:49,480 --> 00:03:52,560
Speaker 2: International travels back to ninety one percent of pre pandemic levels.

83
00:03:52,560 --> 00:03:54,920
Speaker 2: In the case of South Korea, it's actually higher. Main

84
00:03:54,960 --> 00:03:58,119
Speaker 2: sources of visitors New Zealand, the USA and UK.

85
00:03:58,400 --> 00:04:01,160
Speaker 1: A story number four. How about this one. BHP has

86
00:04:01,240 --> 00:04:04,240
Speaker 1: made a second bid for Anglo American worth around sixty

87
00:04:04,280 --> 00:04:06,600
Speaker 1: four point four billion dollars and once again Sean the

88
00:04:06,640 --> 00:04:08,680
Speaker 1: board of the UK based miners said no.

89
00:04:09,360 --> 00:04:12,280
Speaker 2: He came ahead of the Anglo American management outlining a

90
00:04:12,320 --> 00:04:15,680
Speaker 2: new strategy overnight which is supposed to revive the Alien minor.

91
00:04:15,960 --> 00:04:17,840
Speaker 2: The new bid is about five billion dollars more than

92
00:04:17,880 --> 00:04:20,400
Speaker 2: the initial offer made last month. It would involve BHP

93
00:04:20,520 --> 00:04:23,800
Speaker 2: issuing about forty seven million dollars worth of new shares.

94
00:04:23,839 --> 00:04:26,200
Speaker 2: That's a lot of shares. The structure is very similar

95
00:04:26,520 --> 00:04:29,560
Speaker 2: to the previous offer, whereby a BHP would sell controlling

96
00:04:29,600 --> 00:04:33,320
Speaker 2: interests in two listed South African miners. After being rejected,

97
00:04:33,360 --> 00:04:36,400
Speaker 2: BHP CEO Mike Henry said he was disappointed. He said

98
00:04:36,400 --> 00:04:38,720
Speaker 2: the combined portfolio of the two miners would have high

99
00:04:38,839 --> 00:04:42,080
Speaker 2: quality assets in copper, potash, on or a metallurgical coal.

100
00:04:42,400 --> 00:04:44,480
Speaker 2: Bit of time pressure from BHP on this one, because

101
00:04:44,520 --> 00:04:47,080
Speaker 2: the UK has what's known as put up or shut

102
00:04:47,160 --> 00:04:50,080
Speaker 2: up take over laws meaning the Big Australian has to

103
00:04:50,080 --> 00:04:53,520
Speaker 2: get Anglo to the table or make a hard bid.

104
00:04:53,760 --> 00:04:55,039
Speaker 2: Before May twenty two.

105
00:04:55,520 --> 00:04:59,200
Speaker 1: Last one story number five game Stop shares surged as

106
00:04:59,240 --> 00:05:02,640
Speaker 1: speculations swirled around a return to social media by Keith Gill,

107
00:05:03,040 --> 00:05:06,520
Speaker 1: who drove the meme stock Mania of twenty twenty one

108
00:05:06,720 --> 00:05:08,480
Speaker 1: under the moniker Roaring Kitty.

109
00:05:09,160 --> 00:05:11,360
Speaker 2: Yes. The Roaring Kitty post on next shade of man

110
00:05:11,440 --> 00:05:14,600
Speaker 2: leaning forward with what looked like a gaming controller, which

111
00:05:14,640 --> 00:05:17,839
Speaker 2: some traders interpreted to mean Gil is back in action.

112
00:05:18,080 --> 00:05:21,200
Speaker 2: According to Bloomberg, Gil, whose account has long been dormant,

113
00:05:21,200 --> 00:05:23,400
Speaker 2: shot to fame in twenty twenty one by rallying day

114
00:05:23,440 --> 00:05:25,920
Speaker 2: traders on Reddit in an effort to squeeze game Stop

115
00:05:26,160 --> 00:05:29,200
Speaker 2: short sellers. Back then, he started posting the game Stop

116
00:05:29,279 --> 00:05:31,480
Speaker 2: was undervalued. In a month that went from seventeen dollars

117
00:05:31,520 --> 00:05:35,520
Speaker 2: twenty five shared five hundred dollars share. Roaring Kitty then

118
00:05:35,560 --> 00:05:39,839
Speaker 2: pretty much disappeared from site. Game stocks share price also

119
00:05:39,960 --> 00:05:43,480
Speaker 2: disappeared from site. That was until yesterday. The post yesterday

120
00:05:43,480 --> 00:05:46,080
Speaker 2: attracted more than twelve million views, more than one hundred

121
00:05:46,120 --> 00:05:49,600
Speaker 2: and seventy five million game Stop shares, changing tans almost

122
00:05:49,600 --> 00:05:53,000
Speaker 2: thirty times. The one year. Average trading was halted nine

123
00:05:53,000 --> 00:05:56,360
Speaker 2: times in ninety minutes. In the end, the share price

124
00:05:56,400 --> 00:05:57,760
Speaker 2: closed up seventy four percent.

125
00:05:58,120 --> 00:05:59,919
Speaker 1: There we go to the top five business stories in

126
00:06:00,000 --> 00:06:03,400
Speaker 1: five minutes. Thank you Sean, Thank you Michael. It's Wednesday,

127
00:06:03,440 --> 00:06:05,680
Speaker 1: the fifteenth of May twenty twenty four. Remember to hit

128
00:06:05,720 --> 00:06:07,800
Speaker 1: follow on the podcast, and if five minutes isn't enough,

129
00:06:07,839 --> 00:06:10,039
Speaker 1: you can find our longer daily show called Fear and

130
00:06:10,080 --> 00:06:13,880
Speaker 1: Greed whereever you listen to podcasts or headlonger Fearangreed dot

131
00:06:13,920 --> 00:06:16,080
Speaker 1: com dot au, which is also where you can sign

132
00:06:16,160 --> 00:06:18,800
Speaker 1: up for our free weekly newsletter. It comes out every

133
00:06:18,880 --> 00:06:21,120
Speaker 1: Wednesday morning, so there is still time to get your

134
00:06:21,160 --> 00:06:24,039
Speaker 1: email address in and check out today's newsletter. I'm Michael

135
00:06:24,080 --> 00:06:26,240
Speaker 1: Thompson and that was the past five business news by

136
00:06:26,240 --> 00:06:28,120
Speaker 1: Fear and Greed. Have a great day.