1 00:00:03,840 --> 00:00:06,920 Speaker 1: It's Thursday, the first of August twenty twenty four. Welcome 2 00:00:06,920 --> 00:00:09,280 Speaker 1: to the Fast five Business News by Fear and Greed. 3 00:00:09,280 --> 00:00:11,040 Speaker 1: Will we give you the top five business stories you 4 00:00:11,119 --> 00:00:13,680 Speaker 1: need to know in US five minutes are Michael Thompson 5 00:00:13,720 --> 00:00:14,640 Speaker 1: and Good morning. 6 00:00:14,400 --> 00:00:16,720 Speaker 2: Sean Aylmer, Good morning, Michael Shawn. 7 00:00:16,800 --> 00:00:20,240 Speaker 1: Five stories, five minutes. Let's go story number one. Slightly 8 00:00:20,280 --> 00:00:24,440 Speaker 1: weaker than expected inflation figures have alleviated fears of another 9 00:00:24,520 --> 00:00:27,480 Speaker 1: interest rate hike and raised hopes of a cut early 10 00:00:27,560 --> 00:00:28,360 Speaker 1: next year. 11 00:00:28,560 --> 00:00:31,600 Speaker 2: Or even earlier. Investors in the consensus among economists is 12 00:00:31,600 --> 00:00:34,200 Speaker 2: that the next move in interest rates is definitely down, 13 00:00:34,920 --> 00:00:38,720 Speaker 2: maybe late this year, probably early next year. Bureau Statistics 14 00:00:38,760 --> 00:00:41,360 Speaker 2: data released yesterday shows an inflation for the Dune quarter 15 00:00:41,400 --> 00:00:42,839 Speaker 2: came in at one percent. For the year, it was 16 00:00:42,880 --> 00:00:45,280 Speaker 2: three point eight percent. The all important trim mean, which 17 00:00:45,320 --> 00:00:47,640 Speaker 2: takes out all these volatile items that think the Reserve 18 00:00:47,680 --> 00:00:49,559 Speaker 2: Bank likes to look at it came in at one 19 00:00:49,600 --> 00:00:51,839 Speaker 2: percent for the quarter three point nine percent for the year, 20 00:00:52,040 --> 00:00:55,480 Speaker 2: slightly lower than expected. With a Reserve Bank board due 21 00:00:55,480 --> 00:00:58,240 Speaker 2: to meet next week to deliberate on rates, any number 22 00:00:58,280 --> 00:01:02,000 Speaker 2: higher than four percent would put pressure on an intrastraight high. 23 00:01:02,120 --> 00:01:05,960 Speaker 2: That didn't happen. Housing including is driving prices up higher, 24 00:01:05,959 --> 00:01:08,600 Speaker 2: so to stuff like health and general insurance, as well 25 00:01:08,640 --> 00:01:12,000 Speaker 2: as education. Some of the heats come out of services inflation. 26 00:01:12,200 --> 00:01:14,760 Speaker 2: That is good news. As a result, three year bond 27 00:01:14,800 --> 00:01:17,959 Speaker 2: that yields fell. That means people think interest rates are 28 00:01:18,000 --> 00:01:20,600 Speaker 2: going to fall in the future. The Aussie dollar also 29 00:01:20,640 --> 00:01:21,479 Speaker 2: dropped as a result. 30 00:01:21,840 --> 00:01:24,199 Speaker 1: Sean, do you think the Reserve Bank will be relieved 31 00:01:24,360 --> 00:01:25,880 Speaker 1: by yesterday's inflation figure? 32 00:01:26,120 --> 00:01:28,959 Speaker 2: Yes? I think so. Inflation remains too high, it's sticky, 33 00:01:29,040 --> 00:01:31,160 Speaker 2: so to speak, but further rate heights could well tip 34 00:01:31,160 --> 00:01:33,319 Speaker 2: the economy into recession and that's not what the central 35 00:01:33,319 --> 00:01:36,920 Speaker 2: bank wants. While the employment market has remained remarkably resilient, 36 00:01:36,959 --> 00:01:39,800 Speaker 2: unemployment is definitely trending higher. There's been a sharp slow 37 00:01:39,840 --> 00:01:42,440 Speaker 2: down in the retail sector and in the construction sector. 38 00:01:42,720 --> 00:01:45,520 Speaker 2: The number of insolvencies hit a record last financial year, 39 00:01:45,680 --> 00:01:47,760 Speaker 2: and in fact, on a per capital basis, we are 40 00:01:47,800 --> 00:01:50,760 Speaker 2: in recession. The number we got yesterday, though, gives the 41 00:01:50,800 --> 00:01:54,360 Speaker 2: Reserve Bank a reason to not lift interest rates, and 42 00:01:54,400 --> 00:01:55,480 Speaker 2: they'll be happy about that. 43 00:01:55,760 --> 00:01:58,440 Speaker 1: All right. Under story number two. Now and national home 44 00:01:58,560 --> 00:02:01,680 Speaker 1: values rows by nor point five percent in July. That 45 00:02:01,840 --> 00:02:05,800 Speaker 1: is the eighteenth consecutive month of increases and prices are 46 00:02:05,800 --> 00:02:09,160 Speaker 1: more than thirteen percent higher than early last year. But Sean, 47 00:02:09,320 --> 00:02:10,560 Speaker 1: it isn't all good news. 48 00:02:10,560 --> 00:02:13,400 Speaker 2: That's right. The Australian market is pretty much splitn to Perth, 49 00:02:13,440 --> 00:02:16,560 Speaker 2: Brisbane and Adelaide, where there isn't a lot of stock available, 50 00:02:16,840 --> 00:02:20,440 Speaker 2: their prices are soaring. Melbourne, Hobart and Darwin, where there 51 00:02:20,480 --> 00:02:24,080 Speaker 2: is plenty of stock available, well, their prices are struggling. 52 00:02:24,120 --> 00:02:27,000 Speaker 2: Sydney is sitting somewhere in between. House prices fell during 53 00:02:27,000 --> 00:02:29,400 Speaker 2: the three months in Melbourne. In Sydney they're up just 54 00:02:29,480 --> 00:02:32,160 Speaker 2: one percent, much slower than the five percent pace this 55 00:02:32,240 --> 00:02:35,959 Speaker 2: time last year. Core Logics Research director Tim Lawless says 56 00:02:36,160 --> 00:02:38,560 Speaker 2: its clear momentum has come out of the market in 57 00:02:38,639 --> 00:02:42,959 Speaker 2: most cities. What's interesting is affordability problems are really kicking in. 58 00:02:43,080 --> 00:02:45,720 Speaker 2: The fastest growth across the nation over the past three 59 00:02:45,720 --> 00:02:49,040 Speaker 2: months comes from the lowest quartole of house prices. The 60 00:02:49,160 --> 00:02:52,840 Speaker 2: cheaper homes and unit prices are now rising much faster 61 00:02:52,919 --> 00:02:56,880 Speaker 2: than house prices, suggesting that affordability is playing a role 62 00:02:56,919 --> 00:02:57,359 Speaker 2: there too. 63 00:02:58,080 --> 00:03:01,600 Speaker 1: Story number three Rio tinto a net profit of nearly 64 00:03:01,720 --> 00:03:05,040 Speaker 1: nine billion dollars over the six months to June, but 65 00:03:05,160 --> 00:03:09,000 Speaker 1: rather than boost dividends to shareholders, the country's third largest 66 00:03:09,000 --> 00:03:12,080 Speaker 1: miner is going to spend more on growth projects. 67 00:03:12,400 --> 00:03:14,960 Speaker 2: The five point eight billion at US dollar profit was 68 00:03:15,040 --> 00:03:18,280 Speaker 2: close to expectations and up fourteen percent on a year earlier. 69 00:03:18,360 --> 00:03:20,880 Speaker 2: It was driven by improved earnings in its copper and 70 00:03:20,919 --> 00:03:24,919 Speaker 2: aluminium operations, though its iron ore business remains the dominant 71 00:03:25,000 --> 00:03:28,480 Speaker 2: bread winner. Boss Jakob staus Home said the company was 72 00:03:28,520 --> 00:03:32,000 Speaker 2: consistently very profitable and growing. The dividend of a dollar 73 00:03:32,080 --> 00:03:34,960 Speaker 2: seventy seven US a share was slightly lower than expected, 74 00:03:35,040 --> 00:03:37,680 Speaker 2: though it's still the fourth biggest interim dividend in the 75 00:03:37,720 --> 00:03:40,560 Speaker 2: minus one hundred and fifty one year history. Analysts said 76 00:03:40,560 --> 00:03:43,920 Speaker 2: it basically hints that the miner is investing more rather 77 00:03:43,960 --> 00:03:46,400 Speaker 2: than giving it back to shareholders. Its share price closed 78 00:03:46,480 --> 00:03:47,560 Speaker 2: up two percent yesterday. 79 00:03:48,080 --> 00:03:51,120 Speaker 1: Story number four about six hundred jobs are at risk 80 00:03:51,200 --> 00:03:54,640 Speaker 1: at troubled airline Regional Express after the company's shares were 81 00:03:54,640 --> 00:03:58,600 Speaker 1: suspended yesterday and flights canceled between Capital cities. 82 00:03:59,280 --> 00:04:02,200 Speaker 2: Workers were told the business that services seven three seven 83 00:04:02,280 --> 00:04:04,960 Speaker 2: flights in Capital Cities will cease to operate. Three hundred 84 00:04:05,000 --> 00:04:06,960 Speaker 2: and sixty jobs will go there. Another two hundred and 85 00:04:06,960 --> 00:04:09,520 Speaker 2: fifty jobs are at risk on regional routes. According to 86 00:04:09,560 --> 00:04:12,440 Speaker 2: the AFR, both Quantis and Virgin have committed to pick 87 00:04:12,520 --> 00:04:15,400 Speaker 2: up as many jobs as possible. Federal treasure Jim Chalmers 88 00:04:15,720 --> 00:04:17,840 Speaker 2: has stopped short of agreeing that the government should take 89 00:04:17,839 --> 00:04:20,760 Speaker 2: an equity stake in REX. Others in the industry said 90 00:04:20,760 --> 00:04:23,360 Speaker 2: the crisis that the regional airlines should be a catalyst 91 00:04:23,440 --> 00:04:28,679 Speaker 2: for reform. For example, the boss of Sydney Airport, Scott Tarltan, said, 92 00:04:28,800 --> 00:04:31,080 Speaker 2: the demise of REX demonstrates that we need to change 93 00:04:31,080 --> 00:04:34,159 Speaker 2: some things in the Australian aviation market for competition to thrive, 94 00:04:34,480 --> 00:04:37,120 Speaker 2: because recent history suggests the barriers are too high. 95 00:04:37,520 --> 00:04:40,520 Speaker 1: Last one shown story number five. The crisis in the 96 00:04:40,560 --> 00:04:43,960 Speaker 1: Middle East is escalating after Israel said it had killed 97 00:04:43,960 --> 00:04:47,880 Speaker 1: a senior Hesbala commander in an air strike on Beirute 98 00:04:48,040 --> 00:04:51,600 Speaker 1: and is suspected of assassinating the leader of Hamas in Iran. 99 00:04:52,200 --> 00:04:55,240 Speaker 2: Israel said the operation in Beirut was retaliation against the 100 00:04:55,240 --> 00:04:58,800 Speaker 2: individual responsible for a deadly rocket attack on the Israeli 101 00:04:58,880 --> 00:05:03,760 Speaker 2: occupied Goal and Heights last week. The Israeli Defense Forces 102 00:05:03,800 --> 00:05:07,560 Speaker 2: said that the leader was Hesbala's most senior military commander. 103 00:05:08,080 --> 00:05:10,599 Speaker 2: It marks the first time Israel has targeted a Hesbla 104 00:05:10,720 --> 00:05:14,080 Speaker 2: figure in Beirut since hostilities erupted between the two sides 105 00:05:14,360 --> 00:05:17,640 Speaker 2: after the Palestinian militant group Hamas launched its attack on 106 00:05:17,720 --> 00:05:21,000 Speaker 2: the Jewish state. On October seven, now yesterday, the leader 107 00:05:21,040 --> 00:05:25,360 Speaker 2: of Hamas, Ismail Heneya, was assassinated in Tehran. No one 108 00:05:25,400 --> 00:05:29,919 Speaker 2: immediately claimed responsibility, but suspicion fell on Israel. A Hamas 109 00:05:29,960 --> 00:05:33,120 Speaker 2: official said its chiefs assassination is a cowardly act that 110 00:05:33,160 --> 00:05:36,479 Speaker 2: will not go unpunished. Both incidents come as the US 111 00:05:36,520 --> 00:05:39,760 Speaker 2: continues to lead diplomatic efforts to de escalatet this situation 112 00:05:40,240 --> 00:05:41,440 Speaker 2: that ain't working at the moment. 113 00:05:41,680 --> 00:05:44,040 Speaker 1: Indeed, there we go the top five business stories in 114 00:05:44,080 --> 00:05:47,000 Speaker 1: five minutes. Thank you Sean, Thank you Michael. It is Thursday, 115 00:05:47,080 --> 00:05:49,360 Speaker 1: the first of August twenty twenty four. Remember to hit 116 00:05:49,400 --> 00:05:52,000 Speaker 1: follow on the podcast, and if five minutes isn't enough, 117 00:05:52,000 --> 00:05:54,280 Speaker 1: you can find our longer daily show called Fear and 118 00:05:54,360 --> 00:05:57,520 Speaker 1: Greed wherever you listen to podcasts, or check out the 119 00:05:57,520 --> 00:05:59,960 Speaker 1: new episode of our sister podcast, How Do They Afford That? 120 00:06:00,000 --> 00:06:02,000 Speaker 1: But all about making your money work harder for you. 121 00:06:02,360 --> 00:06:04,479 Speaker 1: This week's episode is looking at a whole bunch of 122 00:06:04,480 --> 00:06:08,039 Speaker 1: different debt repayment strategies. You can find that wherever you 123 00:06:08,080 --> 00:06:09,719 Speaker 1: listen to podcasts, and I'll put a link in today's 124 00:06:09,720 --> 00:06:12,120 Speaker 1: show notes as well. I'm Michael Thompson and that was 125 00:06:12,120 --> 00:06:14,640 Speaker 1: the Fast five Business News by Fear and Greed. Have 126 00:06:14,760 --> 00:06:17,520 Speaker 1: a great day.