1 00:00:06,280 --> 00:00:09,160 Speaker 1: Welcome to Fear and greed business news you can use today. 2 00:00:09,200 --> 00:00:12,000 Speaker 1: The big miners pay most in corporate tax, but a 3 00:00:12,039 --> 00:00:15,840 Speaker 1: bunch of companies, including Optus, Virgin Australia and CSL, have 4 00:00:15,960 --> 00:00:18,759 Speaker 1: paid zero. The Reserve Bank says the cost of living 5 00:00:18,800 --> 00:00:21,960 Speaker 1: crisis that is almost over, and Papua New Guinea becomes 6 00:00:22,160 --> 00:00:25,160 Speaker 1: just the third country to sign a treaty with Australia. 7 00:00:25,320 --> 00:00:29,960 Speaker 1: Plus Elon Musk's wealth pushes above half a trillion US dollars, 8 00:00:30,240 --> 00:00:33,199 Speaker 1: and two of the major record labels, Universal and Warner 9 00:00:33,479 --> 00:00:36,760 Speaker 1: are close to agreeing on how AI treats music. It 10 00:00:36,880 --> 00:00:40,240 Speaker 1: is Friday, the third of October twenty twenty five. I'm 11 00:00:40,280 --> 00:00:42,919 Speaker 1: Michael Thompson and good morning Sean Aylmer. 12 00:00:43,320 --> 00:00:47,040 Speaker 2: Good morning, Michael. What a varied show we have today, 13 00:00:47,680 --> 00:00:52,520 Speaker 2: from the rich people to music, to treaties and all 14 00:00:52,560 --> 00:00:53,400 Speaker 2: sorts of things to. 15 00:00:53,520 --> 00:00:58,400 Speaker 1: Companies paying no tax, which is the main story this morning, Sean. 16 00:00:58,840 --> 00:01:01,760 Speaker 1: The three big miners it's Rio, Tinto, BHP and four 17 00:01:01,760 --> 00:01:05,160 Speaker 1: to Skew Medals pay the most corporate tax, while some companies, 18 00:01:05,680 --> 00:01:10,559 Speaker 1: including Optics, including Merger Australia and including CSL as well 19 00:01:10,760 --> 00:01:11,400 Speaker 1: pay zero. 20 00:01:12,040 --> 00:01:14,320 Speaker 2: At least that's what happened in the twenty twenty three 21 00:01:14,360 --> 00:01:17,600 Speaker 2: to twenty four financial year up Yesterday, the Australian Tax 22 00:01:17,680 --> 00:01:20,280 Speaker 2: Office released its annual list of taxes paid by their 23 00:01:20,319 --> 00:01:26,880 Speaker 2: country's biggest corporations. Always great for the voyeurs voyeurs, what's 24 00:01:26,920 --> 00:01:28,800 Speaker 2: the word there, Mike. I'm not sure any of those 25 00:01:28,800 --> 00:01:30,920 Speaker 2: it'd like to check out this sort of stuff. The 26 00:01:30,959 --> 00:01:33,760 Speaker 2: big four banks paid to combined ten billion dollars, with 27 00:01:33,800 --> 00:01:35,880 Speaker 2: a Commonwealth bank paying more than a third of that amount. 28 00:01:35,959 --> 00:01:39,240 Speaker 2: Am Z paid the least insurance Australia Group, which owns 29 00:01:39,319 --> 00:01:45,480 Speaker 2: NRMA it paid nine dollars. Quite amazing, just nine dollars. 30 00:01:45,600 --> 00:01:49,720 Speaker 2: Am TPG, the telco TRANSERB and the tollraid operator and 31 00:01:49,760 --> 00:01:53,080 Speaker 2: Domino's paid zero. Before we get to upset, there are 32 00:01:53,080 --> 00:01:55,800 Speaker 2: plenty of reasons why a company doesn't pay much or 33 00:01:55,840 --> 00:01:58,920 Speaker 2: any tax. So seventeen percent of big business has made 34 00:01:58,960 --> 00:02:02,960 Speaker 2: a loss, and an additional nine percent deducted losses from 35 00:02:03,160 --> 00:02:07,120 Speaker 2: previous years. In fact, the Tax Office yesterday was quite 36 00:02:07,360 --> 00:02:08,959 Speaker 2: happy about the whole thing. They said, it's the first 37 00:02:08,960 --> 00:02:12,760 Speaker 2: time that more than seventy percent of big businesses paid tax, 38 00:02:13,080 --> 00:02:16,840 Speaker 2: like paid more than zero tax. The total taxes received 39 00:02:16,840 --> 00:02:19,480 Speaker 2: from big business fell to ninety five point seven billion 40 00:02:19,520 --> 00:02:22,399 Speaker 2: dollars in that twenty twenty three twenty four financial year. 41 00:02:22,520 --> 00:02:24,880 Speaker 2: The previous year it had hit a record high because 42 00:02:24,919 --> 00:02:29,200 Speaker 2: of commodity prices. Though when you throw the compliance stuff in, 43 00:02:30,560 --> 00:02:32,520 Speaker 2: the tital tax take was more than one hundred billion 44 00:02:32,520 --> 00:02:35,480 Speaker 2: dollars in two years. Now we've done Australia has done that. 45 00:02:35,840 --> 00:02:38,640 Speaker 2: The ATA reckons that Australia has some of the highest 46 00:02:38,760 --> 00:02:42,200 Speaker 2: levels of tax compliance of large business in the world. 47 00:02:42,600 --> 00:02:45,480 Speaker 2: So ninety four point one percent of tax is paid voluntarily. 48 00:02:45,520 --> 00:02:48,000 Speaker 2: You throw the compliance stuff in ninety six point three percent. 49 00:02:48,280 --> 00:02:50,520 Speaker 2: I'm not sure what the other three point seven percent, 50 00:02:50,639 --> 00:02:54,840 Speaker 2: whether that's just money that isn't being paid. I mean 51 00:02:54,919 --> 00:02:57,320 Speaker 2: that'd be worth what four billion dollars on these numbers. 52 00:02:57,440 --> 00:03:00,639 Speaker 2: I'm not sure where that goes, but anyway, very happy 53 00:03:00,639 --> 00:03:01,320 Speaker 2: with the tax take. 54 00:03:01,600 --> 00:03:05,639 Speaker 1: Got to say though, that who was it to just say, 55 00:03:05,680 --> 00:03:11,960 Speaker 1: IAG paying just nine dollars in tax just feels like 56 00:03:12,000 --> 00:03:14,359 Speaker 1: that's just a rounding error or something, right, Like, it's 57 00:03:14,400 --> 00:03:17,000 Speaker 1: just nine dollars. It could have either been zero or 58 00:03:17,280 --> 00:03:21,519 Speaker 1: nine million, but that is fantastic. Just get paid ten dollars, 59 00:03:21,760 --> 00:03:23,520 Speaker 1: pay a ten dollar note and get a dollar change, 60 00:03:23,600 --> 00:03:28,399 Speaker 1: like it's quite extraordinary. Who is paying all the tax then? 61 00:03:28,880 --> 00:03:30,760 Speaker 1: And what about the big off shore companies, because this 62 00:03:30,800 --> 00:03:32,840 Speaker 1: is really the thing that people do get up in 63 00:03:32,960 --> 00:03:35,680 Speaker 1: arms about the big off shore companies, the tax giants. 64 00:03:36,200 --> 00:03:38,640 Speaker 1: Are they paying their fair share of tax? 65 00:03:39,400 --> 00:03:41,560 Speaker 2: Over half the company tax take, or forty eight point 66 00:03:41,640 --> 00:03:44,280 Speaker 2: five billion dollars, was paid by the mining and energy companies. 67 00:03:44,440 --> 00:03:47,640 Speaker 2: ATO Assistant Commissioner Michelle SAMs said it is the third 68 00:03:47,720 --> 00:03:49,600 Speaker 2: year in the row that they've paid more tax than 69 00:03:49,760 --> 00:03:52,880 Speaker 2: all the other sectors combined. So Rio for example, paid 70 00:03:52,880 --> 00:03:55,800 Speaker 2: six point three billion BHP six billion four to s 71 00:03:55,840 --> 00:03:59,080 Speaker 2: Q four billions, so they had definitely the big tax payers. 72 00:03:59,280 --> 00:04:02,560 Speaker 2: In terms of the big tech companies, they're probably not 73 00:04:02,640 --> 00:04:06,360 Speaker 2: paying enough tax, that's my view. Microsoft, Google, Facebook, Apple 74 00:04:06,400 --> 00:04:10,160 Speaker 2: and Amazon combined paid six hundred and fifty million dollars 75 00:04:10,160 --> 00:04:13,920 Speaker 2: in tax for their Aussie operations. Netflix paid no tax 76 00:04:14,200 --> 00:04:16,839 Speaker 2: on one point two billion dollars of total income, Tesla 77 00:04:16,920 --> 00:04:20,440 Speaker 2: paid just twenty seven million dollars now. In a statement, 78 00:04:20,480 --> 00:04:23,440 Speaker 2: the ATO said it continues to pay close attention to 79 00:04:23,480 --> 00:04:25,719 Speaker 2: these taxpayers to ensure they are paying the right amount 80 00:04:25,720 --> 00:04:30,120 Speaker 2: of tax and that losses are not created through contrived schemes. 81 00:04:31,080 --> 00:04:34,280 Speaker 2: The ATA sounds like they understand that the public want 82 00:04:34,839 --> 00:04:37,520 Speaker 2: big tech companies and overseas companies to pay their fair 83 00:04:37,520 --> 00:04:38,200 Speaker 2: share of tax. 84 00:04:38,520 --> 00:04:41,920 Speaker 1: Yeah, it doesn't really pass the pub test, that does it. No, No, 85 00:04:43,000 --> 00:04:45,920 Speaker 1: Sean the Reserve Bank, we're moving on from tax now 86 00:04:45,960 --> 00:04:50,080 Speaker 1: to the Reserve Bank believes financial pressures on Australian households 87 00:04:50,080 --> 00:04:52,520 Speaker 1: are easing, with the number of mortgage holders at risk 88 00:04:52,600 --> 00:04:56,039 Speaker 1: of falling behind on repayments less than one percent, which 89 00:04:56,120 --> 00:04:59,159 Speaker 1: is actually a low not seen since twenty twenty two. 90 00:05:00,240 --> 00:05:01,480 Speaker 2: This one passes the pub test. 91 00:05:01,760 --> 00:05:06,159 Speaker 1: Well, see, it does not feel right like. It doesn't 92 00:05:06,160 --> 00:05:08,200 Speaker 1: feel as though if you walk around to everyone in 93 00:05:08,240 --> 00:05:10,240 Speaker 1: the street and say, hey, are you're feeling more comfortable now? 94 00:05:10,240 --> 00:05:12,680 Speaker 1: Do you feel like the cost of living crisis is over? 95 00:05:13,000 --> 00:05:14,640 Speaker 1: I don't think it's going to be one percent. 96 00:05:15,600 --> 00:05:18,440 Speaker 2: No, but you do get a sense that it's not 97 00:05:18,560 --> 00:05:21,200 Speaker 2: quite as tough for many people that you're in. 98 00:05:21,880 --> 00:05:25,679 Speaker 1: Yeah, not quite as tough, but certainly not easy. 99 00:05:25,800 --> 00:05:30,400 Speaker 2: In its twice yearly Financial Stability Review, the Reserve Bank 100 00:05:30,560 --> 00:05:32,960 Speaker 2: said the cost of living crisis is easy now. That's 101 00:05:32,960 --> 00:05:35,800 Speaker 2: been helped by lower inflation, interest rate cuts and the 102 00:05:35,839 --> 00:05:40,120 Speaker 2: government's stage three tax cuts. The number of inquiries to 103 00:05:40,160 --> 00:05:43,599 Speaker 2: the National Debt Helpline, for example, has stabilized. The Central 104 00:05:43,600 --> 00:05:46,320 Speaker 2: Bank said the number of mortgage holders in arear so basically, 105 00:05:46,680 --> 00:05:49,919 Speaker 2: you're more than ninety days behind your payment schedule. It 106 00:05:50,040 --> 00:05:53,440 Speaker 2: peaked in the September quarter last year, it's been falling 107 00:05:53,520 --> 00:05:56,400 Speaker 2: ever since. It's now back to pre pandemic levels. That's 108 00:05:56,400 --> 00:05:58,440 Speaker 2: a pretty good measure in terms of cost of living. 109 00:05:58,760 --> 00:06:03,520 Speaker 2: The bottom quarter of income earners with a mortgage have 110 00:06:03,680 --> 00:06:06,600 Speaker 2: enough savings to afford ten months of repayments. The top 111 00:06:06,720 --> 00:06:09,760 Speaker 2: quarter enough for twenty months, so again a good sign. 112 00:06:10,160 --> 00:06:13,120 Speaker 2: The bank expects this easing to continue help play lower 113 00:06:13,160 --> 00:06:16,000 Speaker 2: interest rates. Otherwise, the Central Bank was more confident about 114 00:06:16,000 --> 00:06:18,400 Speaker 2: global trade wars, saying, well, tariff's remain a risk to 115 00:06:18,440 --> 00:06:21,320 Speaker 2: the financial system, the prospect of an all out trade 116 00:06:21,360 --> 00:06:22,279 Speaker 2: war has receded. 117 00:06:22,880 --> 00:06:26,520 Speaker 1: That's stat The bottom quarter of income earners with a 118 00:06:26,560 --> 00:06:30,040 Speaker 1: mortgage have enough savings to afford ten months of repayments. 119 00:06:30,040 --> 00:06:31,359 Speaker 1: And that's the bottom quarter. 120 00:06:31,600 --> 00:06:33,880 Speaker 2: It's pretty impressive. I was surprised. 121 00:06:34,279 --> 00:06:35,160 Speaker 1: That's extraordinary. 122 00:06:35,600 --> 00:06:39,919 Speaker 2: I'm sure that it must be swayed by some people 123 00:06:40,000 --> 00:06:43,920 Speaker 2: in that quarter having paid a lot back into their 124 00:06:44,000 --> 00:06:46,960 Speaker 2: equity of their home. Lame, I guessing because there'd be 125 00:06:47,000 --> 00:06:49,000 Speaker 2: a lot of people who live month to month. 126 00:06:49,320 --> 00:06:51,440 Speaker 1: Yeah yeah, and that if you ask them how could 127 00:06:51,480 --> 00:06:55,279 Speaker 1: you do this now, they wouldn't be able to. Wow. 128 00:06:56,680 --> 00:07:01,599 Speaker 1: It's not often the Reserve Bank shocks me. Shine today today. 129 00:07:01,600 --> 00:07:03,440 Speaker 2: It's a crazy organization that one. 130 00:07:03,520 --> 00:07:06,359 Speaker 1: Oh goodness me, they really busted one out there. Staying 131 00:07:06,400 --> 00:07:09,400 Speaker 1: in the world of economics and supporting the RBA's analysis, 132 00:07:09,480 --> 00:07:12,560 Speaker 1: Household spending rose for the fourth month in a row 133 00:07:12,640 --> 00:07:13,200 Speaker 1: in August. 134 00:07:13,680 --> 00:07:19,440 Speaker 2: Consumer spending continues to recover Outlays on health jump eight percent, Hotels, cafes, 135 00:07:19,480 --> 00:07:22,640 Speaker 2: restaurants up nearly seven percent over the twelve months. Overall 136 00:07:22,640 --> 00:07:24,840 Speaker 2: household spendings up five percent over the last year. 137 00:07:25,080 --> 00:07:27,200 Speaker 1: It's a pretty strong day in the market yesterday, Sean, 138 00:07:27,240 --> 00:07:30,600 Speaker 1: particularly for the banks and also for healthcare leader CSL. 139 00:07:30,720 --> 00:07:33,360 Speaker 1: Nice to see CSL having a good day, jump sharply 140 00:07:33,520 --> 00:07:38,160 Speaker 1: with investors seemingly reassured about any tariff challenges in the States. 141 00:07:38,400 --> 00:07:41,680 Speaker 2: That CESL was up nearly four percent yesterday, and it's 142 00:07:41,760 --> 00:07:44,960 Speaker 2: higher than where Donald Trump than when Donald Trump imposed 143 00:07:45,040 --> 00:07:48,800 Speaker 2: one hundred percent tariffs on pharmaceuticals. Kind Of over the weekend, 144 00:07:48,920 --> 00:07:51,600 Speaker 2: or late last week. What I hadn't realized until I 145 00:07:51,640 --> 00:07:54,920 Speaker 2: was looking at this this morning is that ain Z 146 00:07:55,080 --> 00:07:58,600 Speaker 2: is now bigger than cesself. Sesel is the seventh largest company, 147 00:07:58,640 --> 00:08:01,080 Speaker 2: an Z is the sixth company, and Z of course 148 00:08:01,120 --> 00:08:04,760 Speaker 2: being the fourth of the four banks. So all of 149 00:08:04,760 --> 00:08:07,400 Speaker 2: a sudden you've got the four banks. BHP and West 150 00:08:07,400 --> 00:08:09,640 Speaker 2: Farmers is the other one in the top six. Says 151 00:08:09,840 --> 00:08:15,800 Speaker 2: that a number seven anyway, switcheroo, he switcheroo. It was 152 00:08:15,840 --> 00:08:17,600 Speaker 2: a very good day for the big banks. Am Z 153 00:08:17,880 --> 00:08:21,600 Speaker 2: actually led the way, jumping more than two percent, Combank, Westpact, 154 00:08:21,640 --> 00:08:24,440 Speaker 2: MAB all high. Big miners did well, as did the 155 00:08:24,440 --> 00:08:26,480 Speaker 2: gold stocks for the price of the precious metal, hitting 156 00:08:26,560 --> 00:08:30,080 Speaker 2: yet another new high. In fact, about seventy five percent 157 00:08:30,160 --> 00:08:32,880 Speaker 2: of the S and p ASX two hundred closed high. 158 00:08:33,200 --> 00:08:35,760 Speaker 2: The Boss itself finished up more than one percent to 159 00:08:36,120 --> 00:08:40,120 Speaker 2: eight nine six points worth. A mentioned Drone Shield. It 160 00:08:40,200 --> 00:08:43,480 Speaker 2: was among the worst performing stocks yesterday, dropped ten percent. 161 00:08:43,960 --> 00:08:47,400 Speaker 2: It had jumped about fifty percent in the previous few sessions. 162 00:08:47,520 --> 00:08:49,960 Speaker 1: Okay, we are going to take a quick break, Sean. 163 00:08:50,120 --> 00:08:52,559 Speaker 1: A reminder as always to sign up for the free 164 00:08:52,960 --> 00:08:55,320 Speaker 1: daily Fear and Greed newsletter I'll put a link in 165 00:08:55,320 --> 00:08:57,040 Speaker 1: today's show notes. We'll be back in a moment with 166 00:08:57,080 --> 00:09:06,880 Speaker 1: the rest of the day's business news Shawn. A mutual 167 00:09:06,920 --> 00:09:10,600 Speaker 1: defense treaty between Australia and Papua New Guinea has been 168 00:09:10,600 --> 00:09:13,280 Speaker 1: approved by p and g's cabinet. After a bit of 169 00:09:13,280 --> 00:09:15,600 Speaker 1: a false start last month saw the signing of the 170 00:09:15,640 --> 00:09:16,839 Speaker 1: agreement delayed, the. 171 00:09:16,800 --> 00:09:19,800 Speaker 2: Pook Pook Defense Treaty was endorsed by PNG Prime Minister 172 00:09:19,880 --> 00:09:23,559 Speaker 2: James Marape's cabinet with an absolute majority. Marape says the 173 00:09:23,600 --> 00:09:26,200 Speaker 2: Pook Pook Treaty will open the way for up to 174 00:09:26,240 --> 00:09:29,240 Speaker 2: ten thousand p ANDNG citizens to serve in the Australian 175 00:09:29,240 --> 00:09:32,160 Speaker 2: Defense Force and for p and G to establish new 176 00:09:32,200 --> 00:09:35,480 Speaker 2: special forces and Air Force capabilities. In a statement, CAMERA 177 00:09:35,559 --> 00:09:38,520 Speaker 2: welcome the decision, saying Papua New Guinea is just the 178 00:09:38,640 --> 00:09:41,840 Speaker 2: third country after New Zealand and the US to have 179 00:09:41,960 --> 00:09:45,440 Speaker 2: a treaty with Australia. Marape said the treaty would serve 180 00:09:45,559 --> 00:09:48,960 Speaker 2: as a foundation for the next chapter of p andng's history. 181 00:09:49,240 --> 00:09:51,160 Speaker 2: It will of course be a relief for Prime Minister 182 00:09:51,200 --> 00:09:54,800 Speaker 2: Anthony Alberesi, who a fortnight ago failed to get treaties 183 00:09:54,840 --> 00:09:58,360 Speaker 2: signed with both Papua Anddi Guinea and Benuuatu. He then 184 00:09:58,440 --> 00:10:01,200 Speaker 2: went off to the US, didn't did not see Donald Trump. 185 00:10:01,240 --> 00:10:02,760 Speaker 2: Where he did, he got a silfie with Donald Trump, 186 00:10:02,800 --> 00:10:05,040 Speaker 2: but didn't have a meeting with him anyway. Finally some 187 00:10:05,080 --> 00:10:07,240 Speaker 2: good news on the foreign affairs front. 188 00:10:07,600 --> 00:10:11,120 Speaker 1: Now the shakeup in radio land. Sean is gathering pace 189 00:10:11,200 --> 00:10:16,040 Speaker 1: with Kieren Davis, the veteran boss of ARN Media. You 190 00:10:16,040 --> 00:10:18,600 Speaker 1: always hated it when I describe you as a veteran journalist, 191 00:10:18,720 --> 00:10:19,080 Speaker 1: don't you. 192 00:10:19,120 --> 00:10:21,600 Speaker 2: I wonder how I'm not talking to you. 193 00:10:22,040 --> 00:10:26,640 Speaker 1: I'm sorry. ARN Media. So he's been there for sixteen years. 194 00:10:27,040 --> 00:10:29,360 Speaker 1: This is the company that owns the Kiss and Pure 195 00:10:29,440 --> 00:10:33,040 Speaker 1: Gold networks, very successful. He is now stepping down. 196 00:10:33,200 --> 00:10:36,040 Speaker 2: Yes, he told investors it was the right time. After 197 00:10:36,080 --> 00:10:38,920 Speaker 2: the company began a search for his replacement last year. 198 00:10:39,360 --> 00:10:41,960 Speaker 2: They begin a search last year and the job goes 199 00:10:42,000 --> 00:10:46,760 Speaker 2: to a guy called Michael Stevenson who is already at ARN. 200 00:10:47,480 --> 00:10:50,640 Speaker 2: He's a former chief sales officer at nine Entertainment who 201 00:10:51,240 --> 00:10:53,959 Speaker 2: joined ARN last year. The news comes in a week 202 00:10:54,000 --> 00:10:56,319 Speaker 2: in which seven West Media and Southern Cross Media did 203 00:10:56,320 --> 00:10:58,920 Speaker 2: a deal to merge, and as nine Publishing continues to 204 00:10:58,960 --> 00:11:03,360 Speaker 2: shop around radio assets. Over his tenure, Davis oversaw the 205 00:11:03,400 --> 00:11:06,480 Speaker 2: launch of iHeartRadio app, the sale of Anchel and the 206 00:11:06,600 --> 00:11:09,800 Speaker 2: divestment of the company's stake in Soprano Design. 207 00:11:10,840 --> 00:11:15,120 Speaker 1: And perhaps most memorable and arguably the most successful thing 208 00:11:15,160 --> 00:11:18,200 Speaker 1: that he oversaw was the defection of the top rating 209 00:11:18,240 --> 00:11:22,640 Speaker 1: Sydney radio host Kyle and JACKIEO. He lured them over 210 00:11:22,800 --> 00:11:27,360 Speaker 1: from rival TODAYFM back in twenty fourteen. More recently, though, 211 00:11:27,360 --> 00:11:29,400 Speaker 1: he agreed to a new ten year, two hundred million 212 00:11:29,400 --> 00:11:31,679 Speaker 1: dollar contract for the Kyle and JACKIEO Show, which then 213 00:11:31,720 --> 00:11:36,120 Speaker 1: launched in Melbourne. That bet so far hasn't paid off. 214 00:11:36,520 --> 00:11:39,160 Speaker 2: Now And the other thing probably weighing on Kieran Davis 215 00:11:39,400 --> 00:11:42,280 Speaker 2: is his failure to do a merger with Southern Cross 216 00:11:42,840 --> 00:11:46,000 Speaker 2: almost had it and private equity group Anchorage Capital Partners 217 00:11:46,040 --> 00:11:50,920 Speaker 2: withdrew from the process. So I think those two factors 218 00:11:51,160 --> 00:11:52,800 Speaker 2: probably have weighed into his decision. 219 00:11:53,040 --> 00:11:56,360 Speaker 1: YEA, now IFM Investors, the two hundred and sixty billion 220 00:11:56,400 --> 00:12:01,319 Speaker 1: dollar investment manager backed by Australia's industry superannuation funds, will 221 00:12:01,360 --> 00:12:05,280 Speaker 1: wind down as private equity division, saying it is increasingly 222 00:12:05,400 --> 00:12:06,720 Speaker 1: difficult to compete. 223 00:12:07,400 --> 00:12:09,079 Speaker 2: This is kind of I mean, it's a little bit 224 00:12:09,800 --> 00:12:12,160 Speaker 2: in the weeds. But it's kind of interesting because part 225 00:12:12,200 --> 00:12:14,319 Speaker 2: of the big issue is that the superannuation system four 226 00:12:14,320 --> 00:12:18,560 Speaker 2: point three twenty dollars is just so big. Super funds 227 00:12:18,559 --> 00:12:21,920 Speaker 2: are being forced to invest more capital offshore, you know, 228 00:12:22,040 --> 00:12:26,240 Speaker 2: public and private markets. It's got billions of dollars that 229 00:12:26,240 --> 00:12:29,000 Speaker 2: they're trying to get rid of. It means Australian middle 230 00:12:29,040 --> 00:12:32,360 Speaker 2: market private equity funds like the one that IFM was running, 231 00:12:32,880 --> 00:12:37,040 Speaker 2: are basically being overlooked in favor of large global buyout firms, 232 00:12:37,200 --> 00:12:39,520 Speaker 2: the really big names. That's where the super funds are 233 00:12:39,559 --> 00:12:42,680 Speaker 2: putting their money. IFM chief executive David Neil said the 234 00:12:42,679 --> 00:12:45,360 Speaker 2: fund had delivered a thirty three percent net internal rate 235 00:12:45,360 --> 00:12:47,960 Speaker 2: of return since twenty nineteen, but hadn't been able to 236 00:12:47,960 --> 00:12:51,960 Speaker 2: scale up the Australian strategy sufficiently for it to be 237 00:12:52,040 --> 00:12:56,040 Speaker 2: commercially viable. So the run of return is great, but 238 00:12:56,120 --> 00:12:58,920 Speaker 2: it just kind of can't keep up with the big guys. 239 00:12:59,240 --> 00:13:02,000 Speaker 2: As a result, they're getting out of it. Ifm's best 240 00:13:02,040 --> 00:13:05,920 Speaker 2: known for its investments in infrastructure assets things like Melbourne Airport, osgrid, 241 00:13:06,400 --> 00:13:09,400 Speaker 2: the Indiana Toll Road in the US, but actually less 242 00:13:09,400 --> 00:13:11,600 Speaker 2: than half of one percent of its funds are in 243 00:13:11,640 --> 00:13:15,520 Speaker 2: private equity. I mean most of Ifm's money is actually 244 00:13:16,920 --> 00:13:19,800 Speaker 2: well unlisted infrastructure has got just under half of it, 245 00:13:19,920 --> 00:13:23,160 Speaker 2: about seventy six billion dollars in listed equity. That's thirty 246 00:13:23,160 --> 00:13:26,240 Speaker 2: eight billion dollars in private credit, twenty billion in real estate. 247 00:13:26,520 --> 00:13:30,200 Speaker 2: So the private equity part of the business wasn't going 248 00:13:30,240 --> 00:13:30,800 Speaker 2: to hold up. 249 00:13:31,000 --> 00:13:34,480 Speaker 1: Okay, turn into international news now and how about this one? Sure, 250 00:13:34,480 --> 00:13:37,920 Speaker 1: and this is staggering. Elon Musk has become the first 251 00:13:38,080 --> 00:13:42,000 Speaker 1: ever person to be worth on paper at least half 252 00:13:42,120 --> 00:13:46,120 Speaker 1: a trillion dollars. There's now one hundred and fifty billion 253 00:13:46,360 --> 00:13:49,400 Speaker 1: US dollars richer than number two Larry Ellison. 254 00:13:49,840 --> 00:13:51,920 Speaker 2: So this is according to the Forbes Rich List, was 255 00:13:51,960 --> 00:13:54,599 Speaker 2: that which was actually the original rich list, like the 256 00:13:54,640 --> 00:13:57,440 Speaker 2: barw Rich List which became the fin Review Rich List, 257 00:13:57,440 --> 00:14:01,320 Speaker 2: which became the Australian Rich List, all actually flowed from 258 00:14:01,320 --> 00:14:03,680 Speaker 2: the Forbes Rich List. It says that Musk hit the 259 00:14:03,760 --> 00:14:07,360 Speaker 2: milestone on Wednesday after the share price of Tesla jumped 260 00:14:07,360 --> 00:14:11,400 Speaker 2: four percent. Now chareholders is certainly enjoying Must's return focus 261 00:14:11,840 --> 00:14:15,040 Speaker 2: on Tesla, having briefly been chief cost cutter for President 262 00:14:15,040 --> 00:14:17,680 Speaker 2: Donald Trump. Since he quit that job. In April, Tesla's 263 00:14:17,720 --> 00:14:21,160 Speaker 2: share price has doubled, Masks twelve percent, and Tesla is 264 00:14:21,200 --> 00:14:23,360 Speaker 2: now worth one hundred and ninety one billion dollars. His 265 00:14:23,480 --> 00:14:26,920 Speaker 2: stake in space X is about one hundred and sixty 266 00:14:26,920 --> 00:14:32,520 Speaker 2: billion dollars. His stake in X is about sixty billion dollars. 267 00:14:32,680 --> 00:14:35,200 Speaker 2: A little bit of a trick to this one because 268 00:14:35,240 --> 00:14:39,600 Speaker 2: Forbes has included a disputed amount of pay that he 269 00:14:39,720 --> 00:14:44,440 Speaker 2: is expected to get. Now the Delaware court has knocked 270 00:14:44,440 --> 00:14:48,320 Speaker 2: that back. He's appealing that, So Forbes has put fifty 271 00:14:48,360 --> 00:14:51,080 Speaker 2: percent of that in the calculation, which actually takes him 272 00:14:51,400 --> 00:14:55,400 Speaker 2: to this level. Just before we leave Musk and which 273 00:14:55,480 --> 00:14:58,840 Speaker 2: assets open AI has just been valued at half a 274 00:14:58,880 --> 00:15:02,080 Speaker 2: trillion dollars on the back of an employee share sale 275 00:15:02,080 --> 00:15:05,120 Speaker 2: program that puts it ahead of SpaceX. Elone must SpaceX 276 00:15:05,120 --> 00:15:07,640 Speaker 2: in terms of valuation, Dan reckon Elon and be happy 277 00:15:07,640 --> 00:15:08,200 Speaker 2: about that one. 278 00:15:08,320 --> 00:15:11,280 Speaker 1: No, I don't think so. Now. Universal Music and Warner 279 00:15:11,360 --> 00:15:15,960 Speaker 1: Music are nearing landmark AI licensing deals as record labels 280 00:15:16,280 --> 00:15:19,360 Speaker 1: really try to set the terms for how tech groups 281 00:15:19,600 --> 00:15:20,480 Speaker 1: pay for music. 282 00:15:21,280 --> 00:15:24,800 Speaker 2: Universal and water homes to acts like Taylor Swift, Kendrick Lamar, 283 00:15:24,840 --> 00:15:29,120 Speaker 2: and Colplay could each strike deals with artificial intelligence companies 284 00:15:29,120 --> 00:15:31,800 Speaker 2: within weeks. According to the Financial Times, the talks have 285 00:15:31,840 --> 00:15:35,480 Speaker 2: centered on how the labels license their songs, for creating 286 00:15:35,520 --> 00:15:39,040 Speaker 2: AI generated tracks, and for training large language models. According 287 00:15:39,080 --> 00:15:41,320 Speaker 2: to the report, they are seeking a payment structure similar 288 00:15:41,360 --> 00:15:43,560 Speaker 2: to that for streaming, whereby playing a song triggers a 289 00:15:43,600 --> 00:15:46,880 Speaker 2: micro payment to calculate payments, and labels want AI groups 290 00:15:46,880 --> 00:15:51,000 Speaker 2: to develop attribution technology, something like YouTube's content ID system 291 00:15:51,000 --> 00:15:54,440 Speaker 2: that can identify when music's used. The music labels hope 292 00:15:54,440 --> 00:15:58,360 Speaker 2: any deals set a precedent for how AI companies pay 293 00:15:58,520 --> 00:16:02,400 Speaker 2: for music. To me, Michael, they want to skip the 294 00:16:02,440 --> 00:16:05,040 Speaker 2: whole part that the music industry went through before, where 295 00:16:05,080 --> 00:16:07,600 Speaker 2: they basically had their economics fall out until the micro 296 00:16:07,680 --> 00:16:11,280 Speaker 2: payments were introduced by streaming services. It seems they want 297 00:16:11,320 --> 00:16:14,560 Speaker 2: to sort of jump straight to that for AI services. 298 00:16:14,720 --> 00:16:17,040 Speaker 1: Yeah, it does appear that way now, Sean. Coming up 299 00:16:17,080 --> 00:16:19,720 Speaker 1: next is Fear and Greed Q and A. Your guest 300 00:16:19,720 --> 00:16:24,040 Speaker 1: today is Angodsawyan, who is Managing Director Australia, New Zealand 301 00:16:24,080 --> 00:16:26,680 Speaker 1: and global Chief Strategy Officer at Zero. It's got a 302 00:16:26,760 --> 00:16:29,960 Speaker 1: very big job. Zero, of course, is a terrific supporter 303 00:16:30,000 --> 00:16:35,360 Speaker 1: of this podcast. And you are talking to him about 304 00:16:36,000 --> 00:16:40,120 Speaker 1: entrepreneurs founders, and this is a great chat. 305 00:16:40,320 --> 00:16:44,080 Speaker 2: Very close to my heart your heart too. So Zero 306 00:16:44,120 --> 00:16:50,200 Speaker 2: has done this work and essentially put entrepreneur founders into 307 00:16:50,480 --> 00:16:54,880 Speaker 2: three different categories. And it's funny he asked me which 308 00:16:54,920 --> 00:16:56,760 Speaker 2: one I was in, and I knew immediately which one 309 00:16:56,800 --> 00:16:58,680 Speaker 2: I was in, though I was transitioning to one of 310 00:16:58,680 --> 00:17:03,920 Speaker 2: the other categories. We talk about those sorts of the 311 00:17:04,000 --> 00:17:06,560 Speaker 2: type of entrepreneurs and the type of people that start 312 00:17:06,600 --> 00:17:09,800 Speaker 2: up some more businesses, and then also the whole concept 313 00:17:09,800 --> 00:17:12,280 Speaker 2: of having an endgame, said you just go into business 314 00:17:12,320 --> 00:17:14,199 Speaker 2: and see what happens, or do you go in with 315 00:17:14,320 --> 00:17:18,119 Speaker 2: an endgame. It's one of my more enjoyable chats I 316 00:17:18,119 --> 00:17:20,400 Speaker 2: Reckon I've had in recent times, and. 317 00:17:20,400 --> 00:17:24,120 Speaker 1: I've got to say it is fantastic for me. I 318 00:17:24,240 --> 00:17:26,520 Speaker 1: enjoyed it so much. He's a great guy and he 319 00:17:26,600 --> 00:17:27,200 Speaker 1: puts you on. 320 00:17:27,119 --> 00:17:31,239 Speaker 3: This He puts me on the shot so spectacularly and 321 00:17:31,320 --> 00:17:34,439 Speaker 3: just the look on your face was just gold. So 322 00:17:34,560 --> 00:17:36,720 Speaker 3: it is well worth a listen for that because it 323 00:17:36,760 --> 00:17:38,959 Speaker 3: comes through in the audio as well. It's coming up 324 00:17:38,960 --> 00:17:41,080 Speaker 3: next in the Fear and Greed playlist on your podcast 325 00:17:41,080 --> 00:17:44,000 Speaker 3: platform or at fearangreed dot com today you Thank you. 326 00:17:43,880 --> 00:17:45,080 Speaker 2: Sean, Thank you Michael. 327 00:17:45,520 --> 00:17:47,920 Speaker 1: It is Friday, the third of October twenty twenty five. 328 00:17:48,000 --> 00:17:49,960 Speaker 1: Make sure you're following the podcast and please join us 329 00:17:50,000 --> 00:17:52,880 Speaker 1: online as well on LinkedIn, Instagram, x TikTok and Facebook. 330 00:17:52,920 --> 00:17:55,399 Speaker 1: I'm Michael Thompson and that was Fear and Greed. Have 331 00:17:55,440 --> 00:17:58,280 Speaker 1: a great day.