1 00:00:04,040 --> 00:00:06,880 Speaker 1: Welcome to the weekend edition of the Fast Five. Business 2 00:00:06,880 --> 00:00:09,559 Speaker 1: News by Fear and Greed. Are Michael Thompson and Hello 3 00:00:09,640 --> 00:00:13,120 Speaker 1: Sean aylmer Aho Michael Sewan. On weekdays, it's all about 4 00:00:13,119 --> 00:00:15,680 Speaker 1: the Fast five, the top five business stories in five minutes. 5 00:00:15,720 --> 00:00:17,800 Speaker 1: On the weekend, we still keep it to five minutes, 6 00:00:17,800 --> 00:00:19,560 Speaker 1: but we are going to pick out the biggest business 7 00:00:19,600 --> 00:00:22,400 Speaker 1: story of the week, the most remarkable business story, a 8 00:00:22,520 --> 00:00:25,160 Speaker 1: mystery category that we change every week, and then our 9 00:00:25,200 --> 00:00:28,840 Speaker 1: favorite business related story. Let's jump straight into it. What 10 00:00:29,400 --> 00:00:31,240 Speaker 1: do you think was the biggest business story? 11 00:00:31,280 --> 00:00:33,360 Speaker 2: Oh? Look, I think the economy, Michael, quite a bit 12 00:00:33,400 --> 00:00:35,440 Speaker 2: going on in the last week that now suggests we 13 00:00:35,479 --> 00:00:38,200 Speaker 2: won't get a rate cut. We had the unemployment rate 14 00:00:38,280 --> 00:00:41,000 Speaker 2: pil last month of four point three percent, the number 15 00:00:41,040 --> 00:00:44,320 Speaker 2: of employed people raise by forty two thousand people, including 16 00:00:44,600 --> 00:00:47,320 Speaker 2: a massive fifty five thousand jump in full time employees. 17 00:00:47,600 --> 00:00:50,800 Speaker 2: Consumer sentiments saw to its highest level in nearly four years, 18 00:00:50,840 --> 00:00:53,440 Speaker 2: pretty much the best it's been in seven years. Outside 19 00:00:53,479 --> 00:00:56,480 Speaker 2: COVID maybe a rogue number, maybe not. Deputy Governor of 20 00:00:56,560 --> 00:00:59,480 Speaker 2: Reserve Bank Andrew Houser he said that the bank could 21 00:00:59,480 --> 00:01:02,440 Speaker 2: be boxed in because the economy isn't creating enough capacity. 22 00:01:02,800 --> 00:01:06,160 Speaker 2: It really did shift the conversation this week. It looks 23 00:01:06,200 --> 00:01:09,199 Speaker 2: like we won't be getting another rate cut anytime soon. 24 00:01:10,120 --> 00:01:12,679 Speaker 1: Yeah, big story. The other big story, I think was 25 00:01:12,680 --> 00:01:16,200 Speaker 1: a global one. The US sure and the US government shutdown, 26 00:01:16,400 --> 00:01:19,240 Speaker 1: ending after forty three days. It was the longest ever. 27 00:01:19,240 --> 00:01:22,679 Speaker 1: There was one point four million federal employees that were unpaid. 28 00:01:23,640 --> 00:01:26,800 Speaker 1: The bunch of programs suspended, including the food stamp as 29 00:01:26,840 --> 00:01:31,480 Speaker 1: support for low income Americans. Flights were canceled, thousands of 30 00:01:31,560 --> 00:01:34,360 Speaker 1: delayed and canceled flights for airline passengers. And there was 31 00:01:34,360 --> 00:01:37,039 Speaker 1: a breakthrough this week in the Senate where the Democrats 32 00:01:37,520 --> 00:01:42,000 Speaker 1: supported legislation to get this to get the government moving again. 33 00:01:42,959 --> 00:01:45,840 Speaker 1: A few big flow on effects here. The Fed is 34 00:01:45,880 --> 00:01:48,680 Speaker 1: going to start getting data again gradually, it's going to 35 00:01:48,720 --> 00:01:52,080 Speaker 1: kind of come through in trickles, but its ability to 36 00:01:52,120 --> 00:01:54,920 Speaker 1: make decisions interest rate decisions has surely been affected. The 37 00:01:55,080 --> 00:01:58,040 Speaker 1: uncertainty over the outlook now for rape cuts. It's caused 38 00:01:58,080 --> 00:02:01,160 Speaker 1: all kinds of chaos in financial market. Bitcoin fell, Wall 39 00:02:01,200 --> 00:02:05,160 Speaker 1: Street fell, absolute chaos. Sean backpay will come through for 40 00:02:05,400 --> 00:02:08,240 Speaker 1: government employees, not contractors, and a lot of those are 41 00:02:08,240 --> 00:02:10,560 Speaker 1: small businesses who rely on the government for their income, 42 00:02:10,639 --> 00:02:13,080 Speaker 1: so they'll be affected for a long time and the 43 00:02:13,200 --> 00:02:16,680 Speaker 1: lasting economic impact. Analysts estimated that the shutdown was going 44 00:02:16,720 --> 00:02:19,040 Speaker 1: to knock off about zero point one to zero point 45 00:02:19,080 --> 00:02:21,880 Speaker 1: two percentage points off economic growth for every week that 46 00:02:21,919 --> 00:02:24,320 Speaker 1: it went on for It went on for six weeks, 47 00:02:24,320 --> 00:02:27,440 Speaker 1: at a cost of about fifteen billion US dollars a week. 48 00:02:27,520 --> 00:02:30,639 Speaker 1: This was a big, big shutdown. Glad it's finally over. 49 00:02:31,040 --> 00:02:33,239 Speaker 2: Can I'm tell you my most remarkable story, Michael, Yeah. 50 00:02:33,240 --> 00:02:33,560 Speaker 1: Please. 51 00:02:34,040 --> 00:02:36,320 Speaker 2: This week we saw in action the effect of the 52 00:02:36,360 --> 00:02:39,040 Speaker 2: full Federal Courts landmark ruling back in twenty twenty three. 53 00:02:39,080 --> 00:02:42,639 Speaker 2: Back then, the Federal courts that employers must ask their 54 00:02:42,680 --> 00:02:45,440 Speaker 2: employees if they want to work public holidays. They can't 55 00:02:45,520 --> 00:02:49,720 Speaker 2: just automatically roster them on. Now BHP will pay almost 56 00:02:49,720 --> 00:02:52,799 Speaker 2: one hundred thousand dollars for failing to ask its mining 57 00:02:52,880 --> 00:02:56,480 Speaker 2: workforce in Queensland whether they wanted to work on Christmas 58 00:02:56,600 --> 00:02:59,600 Speaker 2: Day in Boxing Day, basically the Big Australian breach national 59 00:02:59,600 --> 00:03:02,920 Speaker 2: employee standards. The ruling the Federal court ruling in twenty 60 00:03:02,960 --> 00:03:07,920 Speaker 2: twenty three applies regardless of agreements and contracts, extends to 61 00:03:07,960 --> 00:03:11,640 Speaker 2: all sectors of the economy, fast food, retail, logistics, health mining, 62 00:03:11,760 --> 00:03:14,280 Speaker 2: anything you name. You've got to think about it. An 63 00:03:14,320 --> 00:03:18,040 Speaker 2: employer can still require workers to work on public holidays 64 00:03:18,360 --> 00:03:22,280 Speaker 2: if the employee's refusal to its request is unreasonable, but 65 00:03:23,000 --> 00:03:27,480 Speaker 2: the employer still has to ask first. This week we 66 00:03:27,560 --> 00:03:30,280 Speaker 2: saw how that will work in the real economy. Remarkable. 67 00:03:30,680 --> 00:03:34,920 Speaker 1: Yeah, that is remarkable, very quickly. A remarkable milestone for 68 00:03:34,920 --> 00:03:38,880 Speaker 1: the Australian property market this week sean twelve trillion dollars 69 00:03:38,920 --> 00:03:42,119 Speaker 1: in value. That's three times the size of the superannuation system, 70 00:03:42,320 --> 00:03:44,960 Speaker 1: four times the size of bank deposits across the country. 71 00:03:45,240 --> 00:03:47,280 Speaker 1: The most remarkable though, is the fact that the value 72 00:03:47,320 --> 00:03:49,800 Speaker 1: of the housing market has doubled in the last decade, 73 00:03:49,800 --> 00:03:51,600 Speaker 1: and most of that growth has come in the last 74 00:03:51,640 --> 00:03:53,720 Speaker 1: five years, and we hit the twelve trillion dollar mark 75 00:03:53,880 --> 00:03:57,440 Speaker 1: faster than the experts at totality we're expecting. I just 76 00:03:57,480 --> 00:04:00,600 Speaker 1: think all of that wrapped up together quite remarkable. The 77 00:04:01,480 --> 00:04:05,160 Speaker 1: mystery category this week sean the news that's not the news, 78 00:04:05,200 --> 00:04:07,200 Speaker 1: the story behind the story. Go for it so. 79 00:04:07,400 --> 00:04:10,600 Speaker 2: Commonwealth Bank this week came out with its court September 80 00:04:10,680 --> 00:04:14,520 Speaker 2: quarter results really strong. Homeland Screwbay one point one times 81 00:04:14,560 --> 00:04:18,320 Speaker 2: the average of the banking sector. Household deposits one point 82 00:04:18,320 --> 00:04:21,359 Speaker 2: two times the average. It matched the average for the 83 00:04:21,360 --> 00:04:26,240 Speaker 2: competitive business. In the competitive business lending sector, profit margins higher, 84 00:04:26,400 --> 00:04:31,000 Speaker 2: bad lianes decrease. Good news, but investors are looking for 85 00:04:31,080 --> 00:04:35,040 Speaker 2: anything bad about Commonwealth Bank and comments from the Boss 86 00:04:35,080 --> 00:04:38,039 Speaker 2: Matt Common about competition in the future did the trick? 87 00:04:38,880 --> 00:04:41,320 Speaker 2: What the reality was the good news? The news was 88 00:04:41,320 --> 00:04:44,240 Speaker 2: good right. What wasn't the news but was the reality 89 00:04:44,560 --> 00:04:47,120 Speaker 2: is that Commonwealth Bank was sold off big time. Dropped 90 00:04:47,160 --> 00:04:50,640 Speaker 2: ten percent in five sessions, eight percent in two days. 91 00:04:50,720 --> 00:04:53,799 Speaker 2: The shift away from Commonwealth Bank is marked and drastic. 92 00:04:54,160 --> 00:04:57,560 Speaker 2: It is down thirteen percent this financial year, NAB up 93 00:04:57,680 --> 00:05:00,599 Speaker 2: nine percent, Westpac up twenty percent, and Z up thirty 94 00:05:00,600 --> 00:05:04,880 Speaker 2: three percent this financial year. Credible shift away. Yeah. 95 00:05:05,120 --> 00:05:08,000 Speaker 1: Yeah. The one that I liked this week, Sean, was 96 00:05:08,040 --> 00:05:11,719 Speaker 1: the Liberal Party dumping net zero this week. Now, the 97 00:05:11,760 --> 00:05:15,560 Speaker 1: story isn't about climate policy, and it's not about net 98 00:05:15,680 --> 00:05:18,440 Speaker 1: zero those that did happen, But this is about the 99 00:05:18,440 --> 00:05:20,920 Speaker 1: Liberal leadership. It is about Susan Lee. It is about 100 00:05:20,960 --> 00:05:22,960 Speaker 1: whether she is going to be the leader of the 101 00:05:23,000 --> 00:05:25,440 Speaker 1: party for very much longer, and whether the party is 102 00:05:25,440 --> 00:05:27,159 Speaker 1: actually going to be able to kind of build itself 103 00:05:27,200 --> 00:05:29,760 Speaker 1: back up and be able to be a competitor in 104 00:05:29,800 --> 00:05:33,640 Speaker 1: the Australian political arena and represent people. This has been 105 00:05:34,400 --> 00:05:36,279 Speaker 1: a long time coming. This has been a bit of 106 00:05:36,279 --> 00:05:40,640 Speaker 1: a slow bleed, one of the many issues that has 107 00:05:40,680 --> 00:05:44,280 Speaker 1: been splitting both the Nationals and the Libs. But within 108 00:05:44,320 --> 00:05:49,200 Speaker 1: the Liberal Party party room, everything just disintegrated this week 109 00:05:49,640 --> 00:05:54,839 Speaker 1: and Susan Lee lost her bid to push net zero 110 00:05:54,960 --> 00:05:58,920 Speaker 1: through trying to maintain that existing policy. The Conservatives within 111 00:05:58,960 --> 00:06:02,640 Speaker 1: the party succeeded in getting it dumped. Sure, Susan Lee's 112 00:06:02,640 --> 00:06:04,320 Speaker 1: still the leader. She might have brought herself a bit 113 00:06:04,320 --> 00:06:07,360 Speaker 1: of time, but is she going to be there this 114 00:06:07,400 --> 00:06:10,400 Speaker 1: time next year? Certainly not by the next election what 115 00:06:10,440 --> 00:06:12,400 Speaker 1: two and a half years away. Hard to see that 116 00:06:12,400 --> 00:06:14,920 Speaker 1: one happening, Sean, Yeah, I think so. Your favorite story. 117 00:06:14,960 --> 00:06:17,520 Speaker 1: I think we agree on this one. Warren Buffett, he's 118 00:06:17,520 --> 00:06:21,360 Speaker 1: going quiet. The legendary investor has written his final annual 119 00:06:21,440 --> 00:06:25,279 Speaker 1: letter to Berkshire Hathaway shareholders ahead of his retirement in 120 00:06:25,360 --> 00:06:28,960 Speaker 1: the coming weeks. They talked about accelerating his philanthropy, giving 121 00:06:29,000 --> 00:06:30,760 Speaker 1: away more of his one hundred and fifty billion dollar 122 00:06:30,800 --> 00:06:35,520 Speaker 1: fortune using his three children's Foundations. He's got Greg abel 123 00:06:35,560 --> 00:06:37,520 Speaker 1: As taking over a CEO. He says that he's going 124 00:06:37,520 --> 00:06:40,839 Speaker 1: to keep a significant chunk of Berkshire's Class A shares 125 00:06:41,160 --> 00:06:43,760 Speaker 1: until shareholders are fully comfortable. But he says that level 126 00:06:43,760 --> 00:06:48,239 Speaker 1: of confidence shouldn't take long, and he I love this line. 127 00:06:48,400 --> 00:06:51,800 Speaker 1: What often bothers very wealthy CEOs is that other CEOs 128 00:06:51,839 --> 00:06:55,119 Speaker 1: are getting even richer. Envy and greed walk hand in hand. 129 00:06:55,160 --> 00:06:57,840 Speaker 1: It's a very Warren Buffett thing to use his final 130 00:06:57,920 --> 00:07:00,880 Speaker 1: letter to kind of impart yet a little bit more 131 00:07:00,920 --> 00:07:04,800 Speaker 1: wisdom about investing, about wealth, about leadership, about management, all 132 00:07:04,880 --> 00:07:06,360 Speaker 1: of those things have been doing it for a very 133 00:07:06,400 --> 00:07:09,600 Speaker 1: long time. And I think a lot of investors are 134 00:07:09,600 --> 00:07:10,160 Speaker 1: going to miss. 135 00:07:10,040 --> 00:07:13,200 Speaker 2: Him, Sean. I think we all will really indeed. 136 00:07:13,240 --> 00:07:14,480 Speaker 1: All right, thank you very much, Sean. 137 00:07:14,640 --> 00:07:15,240 Speaker 2: Thanks Michael. 138 00:07:15,320 --> 00:07:17,120 Speaker 1: That's five minutes and pretty much everything you need to 139 00:07:17,120 --> 00:07:18,800 Speaker 1: know in the world of business. Don't forget to hit 140 00:07:18,840 --> 00:07:21,560 Speaker 1: follow on the podcast and head to Fearancreed dot com 141 00:07:21,680 --> 00:07:24,200 Speaker 1: dot au to sign up for our free daily newsletter. 142 00:07:24,240 --> 00:07:26,360 Speaker 1: I'm Michael Thompson and this is the fast five business 143 00:07:26,360 --> 00:07:27,440 Speaker 1: news by Fear and Greed.