1
00:00:03,800 --> 00:00:06,840
Speaker 1: It's Monday, the seventh of April twenty twenty five. Welcome

2
00:00:06,840 --> 00:00:09,240
Speaker 1: to the Fast five Business News by Fear and Greed,

3
00:00:09,280 --> 00:00:11,119
Speaker 1: where we give you the top five business stories you

4
00:00:11,160 --> 00:00:13,520
Speaker 1: need to know. When it's five minutes, I'm Michael Thompson

5
00:00:13,520 --> 00:00:14,920
Speaker 1: and good morning Sean Aylmer.

6
00:00:15,040 --> 00:00:15,920
Speaker 2: Good morning Michael.

7
00:00:16,360 --> 00:00:18,360
Speaker 1: Sean. Before we get into the top five stories, a

8
00:00:18,480 --> 00:00:20,759
Speaker 1: very quick, very special announcement, we have a Fear and

9
00:00:20,840 --> 00:00:24,640
Speaker 1: Greed newsletter and as of now, right this very moment,

10
00:00:24,680 --> 00:00:26,920
Speaker 1: it is going daily. It was previously every week and

11
00:00:26,960 --> 00:00:29,880
Speaker 1: now it is every weekday at six am. Head along

12
00:00:29,920 --> 00:00:33,080
Speaker 1: to Fearangreed dot com dot au and sign up. It

13
00:00:33,159 --> 00:00:35,040
Speaker 1: is entirely free, and I'll put a link in today's

14
00:00:35,040 --> 00:00:38,320
Speaker 1: show notes as well. But Sean, on to the Fast

15
00:00:38,360 --> 00:00:42,519
Speaker 1: five story. Number one biggest story around today. Global financial

16
00:00:42,560 --> 00:00:45,440
Speaker 1: markets are in turmoil, with the ASX set to fall

17
00:00:45,520 --> 00:00:48,639
Speaker 1: sharply this morning. Futures markets are actually suggesting more than

18
00:00:48,760 --> 00:00:50,640
Speaker 1: four percent. This is on the back of course, of

19
00:00:50,760 --> 00:00:56,200
Speaker 1: US tariff's a retaliatory impulse from China, and fear is

20
00:00:56,280 --> 00:00:57,600
Speaker 1: really of a global recession.

21
00:00:57,680 --> 00:01:00,720
Speaker 2: Tech stocks at Wall Street are now fishlyhly in bear

22
00:01:00,840 --> 00:01:03,880
Speaker 2: territory after the NASTAQ one hundred dropped six percent over

23
00:01:03,920 --> 00:01:06,080
Speaker 2: the weekend, down more than twenty percent from its peak.

24
00:01:06,120 --> 00:01:09,720
Speaker 2: The broader based s and P five hundred percentun six percent. Basically,

25
00:01:09,760 --> 00:01:12,760
Speaker 2: trillions of dollars have been wiped off share markets in

26
00:01:12,840 --> 00:01:15,320
Speaker 2: the past week or so. The most recent sell off

27
00:01:15,400 --> 00:01:17,960
Speaker 2: was in response to Beijing announcing additional thirty four percent

28
00:01:18,000 --> 00:01:20,440
Speaker 2: tariffs on goods from the US, the same rate imposed

29
00:01:20,440 --> 00:01:23,320
Speaker 2: by the White House on Chinese goods. Futures training on

30
00:01:23,360 --> 00:01:26,199
Speaker 2: the ASEX two hundred suggests our market will drop four

31
00:01:26,200 --> 00:01:28,320
Speaker 2: point three percent on opening, worth about one hundred and

32
00:01:28,360 --> 00:01:31,120
Speaker 2: fifteen billion dollars. That would take it to its lowest

33
00:01:31,200 --> 00:01:34,080
Speaker 2: level since January last year. It fell two and a

34
00:01:34,080 --> 00:01:36,320
Speaker 2: half percent on Friday, already down ten percent from its

35
00:01:36,319 --> 00:01:40,080
Speaker 2: peak about six weeks ago. Investment banks are now forecasting

36
00:01:40,200 --> 00:01:43,039
Speaker 2: the US will fall into recession. Not good.

37
00:01:43,840 --> 00:01:46,760
Speaker 1: Sure, that's equities, What about the Aussie dollar, and what

38
00:01:46,800 --> 00:01:48,520
Speaker 1: about the outlook for interest rates as well?

39
00:01:48,680 --> 00:01:50,840
Speaker 2: Well? It's just above sixty US cents at the moment,

40
00:01:50,880 --> 00:01:53,880
Speaker 2: but plenty of traders think it will drop below that level.

41
00:01:54,080 --> 00:01:57,320
Speaker 2: A trade war and US recession could lead to a

42
00:01:57,400 --> 00:02:01,680
Speaker 2: global recession that'll push commodity prices down. Our currency depends

43
00:02:01,680 --> 00:02:03,760
Speaker 2: a lot on commodity prices. If there is a silver

44
00:02:03,840 --> 00:02:07,840
Speaker 2: market lining. It's what might happen to interest rates if

45
00:02:07,920 --> 00:02:11,640
Speaker 2: our economy slows, the Reserve Bank will cut interest rates.

46
00:02:11,639 --> 00:02:14,919
Speaker 2: In fact, markets are pricing in four rate cuts over

47
00:02:14,919 --> 00:02:17,400
Speaker 2: the next twelve months. Ain Zed actually thinks that we

48
00:02:17,480 --> 00:02:19,720
Speaker 2: three rate cuts starting in May.

49
00:02:20,680 --> 00:02:23,280
Speaker 1: All right. Moving on to story number two now sean

50
00:02:23,440 --> 00:02:27,240
Speaker 1: and one from the election campaign, Prime Minister Anthony Alberanezi

51
00:02:27,480 --> 00:02:30,760
Speaker 1: says a re elected ALP government will spend two point

52
00:02:30,760 --> 00:02:34,280
Speaker 1: three billion dollars to provide thirty percent rebates on household

53
00:02:34,320 --> 00:02:36,680
Speaker 1: battery systems. That's from July this year.

54
00:02:36,919 --> 00:02:39,120
Speaker 2: So housing and batteries have become a focal point of

55
00:02:39,120 --> 00:02:42,080
Speaker 2: the campaign, with the Opposition expected to announce a battery

56
00:02:42,120 --> 00:02:45,160
Speaker 2: program before the three May poll. For his part, oppositionally

57
00:02:45,200 --> 00:02:47,799
Speaker 2: to Peter Dutton yesterday was in Tasmania and Melbourne. He

58
00:02:47,800 --> 00:02:51,200
Speaker 2: said he cap international student arrivals easing the housing crisis.

59
00:02:51,480 --> 00:02:54,440
Speaker 2: On the battery announcement, about one in three Australian households

60
00:02:54,440 --> 00:02:58,720
Speaker 2: have solar but about one in forty have a battery system,

61
00:02:58,760 --> 00:03:01,480
Speaker 2: mostly because it's really expends of the gap means households

62
00:03:01,520 --> 00:03:05,120
Speaker 2: still require energy from the grid in evening hours when

63
00:03:05,120 --> 00:03:08,880
Speaker 2: there's no solar because prices and prices are typically much

64
00:03:08,960 --> 00:03:11,160
Speaker 2: higher at that point. But if people could put batteries in,

65
00:03:11,440 --> 00:03:13,519
Speaker 2: they could store it and wouldn't have to dip into

66
00:03:13,520 --> 00:03:14,160
Speaker 2: the grid.

67
00:03:14,560 --> 00:03:17,320
Speaker 1: Story number three. They might be carnage on global financial

68
00:03:17,360 --> 00:03:19,240
Speaker 1: markets at the moment, Sean, but it doesn't seem to

69
00:03:19,240 --> 00:03:21,760
Speaker 1: have filtered through yet to the local housing market. The

70
00:03:21,760 --> 00:03:25,160
Speaker 1: preliminary clearance rate for auctions over the weekend rose to

71
00:03:25,200 --> 00:03:27,600
Speaker 1: almost seventy one percent, which is the highest level in

72
00:03:27,639 --> 00:03:28,200
Speaker 1: six weeks.

73
00:03:28,280 --> 00:03:30,560
Speaker 2: Pretty good. Twenty five hundred ouctions as well, first time

74
00:03:30,560 --> 00:03:33,800
Speaker 2: above seventy percent since mid February. Most cities recorded a rise.

75
00:03:34,040 --> 00:03:37,560
Speaker 2: Melbourne at the moment is doing really well that seventy

76
00:03:37,600 --> 00:03:40,000
Speaker 2: three percent. It came in at Sydney sixty nine percent.

77
00:03:40,200 --> 00:03:42,960
Speaker 2: Adelaide was the best of the mid side size capitals

78
00:03:43,000 --> 00:03:45,880
Speaker 2: at about eighty eight percent in terms of its preliminary

79
00:03:45,920 --> 00:03:46,640
Speaker 2: clearance rate.

80
00:03:47,200 --> 00:03:49,520
Speaker 1: Story number four. Here's a been of good news, Sean,

81
00:03:49,560 --> 00:03:51,080
Speaker 1: in the midst of a lot of bad news. The

82
00:03:51,160 --> 00:03:54,880
Speaker 1: Reserve Bank has a system Stability report, and it says

83
00:03:54,920 --> 00:03:57,880
Speaker 1: that budget pressures have actually eased for households, and the

84
00:03:57,920 --> 00:04:00,960
Speaker 1: share of households that are behind on mortgage payment has

85
00:04:01,000 --> 00:04:03,040
Speaker 1: stabilized at pre pandemic levels.

86
00:04:03,200 --> 00:04:06,160
Speaker 2: The Bank says cash flow pressures will remain widespread in

87
00:04:06,200 --> 00:04:08,960
Speaker 2: the short term, but should ease further in coming months.

88
00:04:08,960 --> 00:04:12,080
Speaker 2: But the Central Bank's worried that expectations of lower interest

89
00:04:12,160 --> 00:04:15,560
Speaker 2: rates could cause households to take on too much debt. Already,

90
00:04:15,560 --> 00:04:19,200
Speaker 2: figures from bureaus just household spending is holding up. Data

91
00:04:19,240 --> 00:04:22,919
Speaker 2: on Friday shows five successive months of higher household spending.

92
00:04:23,320 --> 00:04:26,839
Speaker 2: Terms of businesses, the Reserve Banks notes that most are

93
00:04:26,880 --> 00:04:30,279
Speaker 2: still making profits despite slower economic growth and higher costs.

94
00:04:30,400 --> 00:04:33,040
Speaker 2: The good news is that signs of business financial stress

95
00:04:33,120 --> 00:04:36,479
Speaker 2: have stabilized, and on solvencies, the Reserve Banks say they've

96
00:04:36,560 --> 00:04:39,920
Speaker 2: risen but remained slightly below the pre pandemic level trend

97
00:04:39,960 --> 00:04:42,440
Speaker 2: and pays little threat to stability all right.

98
00:04:42,520 --> 00:04:45,159
Speaker 1: Last one Sean story number five, the world's five hundred

99
00:04:45,400 --> 00:04:48,839
Speaker 1: richest people, suffered the biggest two day loss ever on

100
00:04:48,880 --> 00:04:52,320
Speaker 1: the Bloomberg Billionaires Indexes. Fallout from President Donald Trump's tariff

101
00:04:52,320 --> 00:04:55,360
Speaker 1: announcement just decimated markets across the globe.

102
00:04:55,440 --> 00:04:58,760
Speaker 2: Billionaires on the Wealth list lost a collective five hundred

103
00:04:58,760 --> 00:05:02,719
Speaker 2: and thirty six billion US dollars. That's about nine hundred

104
00:05:02,760 --> 00:05:06,000
Speaker 2: billion ozzie in just two days. Ninety percent of them

105
00:05:06,040 --> 00:05:08,800
Speaker 2: went backwards. No one lost more over the two day

106
00:05:08,839 --> 00:05:11,800
Speaker 2: stretch than Tesla's Elon Musk. The ev makers share price

107
00:05:11,839 --> 00:05:14,839
Speaker 2: fell ten percent on Friday alone, cut thirty one billion

108
00:05:14,880 --> 00:05:17,560
Speaker 2: dollars from Musk's wealth. He's lost about one hundred and

109
00:05:17,560 --> 00:05:20,680
Speaker 2: thirty billion dollars this year alone. Met A platforms founder

110
00:05:20,760 --> 00:05:24,039
Speaker 2: Mark Zuckerberg Foled followed with a twenty seven billion dollar

111
00:05:24,120 --> 00:05:27,200
Speaker 2: loss as a social media company dropped almost fourteen percent

112
00:05:27,279 --> 00:05:29,880
Speaker 2: over those two days. Flip side Nike found a Phil

113
00:05:29,960 --> 00:05:32,279
Speaker 2: Knight one of the few winners. The shoe company stock

114
00:05:32,400 --> 00:05:35,279
Speaker 2: gained over the weekend after Donald Trump said he'd had

115
00:05:35,320 --> 00:05:38,600
Speaker 2: a very productive call with the Vietnamese leader about eliminating

116
00:05:38,600 --> 00:05:41,880
Speaker 2: a forty six percent tariff. Now much of Mikey's, Nike's manufacturing,

117
00:05:41,920 --> 00:05:44,640
Speaker 2: he's done in Vietnam. Good news for Phil Knight.

118
00:05:45,279 --> 00:05:47,320
Speaker 1: All right, there we go the top five business stories

119
00:05:47,320 --> 00:05:49,640
Speaker 1: in five minutes. Thank you very much, Sean, Thank you, Michael.

120
00:05:49,920 --> 00:05:52,240
Speaker 1: It is Monday, the seventh of April twenty twenty five.

121
00:05:52,279 --> 00:05:54,920
Speaker 1: Remembered he'd follow on the podcast a five minutes isn't enough.

122
00:05:54,920 --> 00:05:57,359
Speaker 1: You can find our longer daily show called Fear and

123
00:05:57,480 --> 00:06:00,400
Speaker 1: Greed whereever you listen to podcasts, and don't forget head

124
00:06:00,400 --> 00:06:02,839
Speaker 1: along to Fearandgreed dot com dot a un sign up

125
00:06:02,880 --> 00:06:05,200
Speaker 1: for our free daily newsletter. There's a link in today's

126
00:06:05,200 --> 00:06:07,320
Speaker 1: show notes as well. I'm Michael Thompson and that was

127
00:06:07,320 --> 00:06:09,800
Speaker 1: the fast five business news by Fear and Greed. Have

128
00:06:09,880 --> 00:06:11,040
Speaker 1: a great day.