1 00:00:03,870 --> 00:00:06,900 Michael Thompson: Qantas set for East Coast to London and New York 2 00:00:06,900 --> 00:00:10,739 Michael Thompson: flights within two years. The downturn in the building industry 3 00:00:10,740 --> 00:00:15,089 Michael Thompson: worsens. And Australia's one- time biggest crypto exchange closes its 4 00:00:15,089 --> 00:00:19,380 Michael Thompson: doors. It's Wednesday, the 31st of May 2023. Welcome to 5 00:00:19,380 --> 00:00:22,860 Michael Thompson: Fear and Greed, Australia's most popular business podcast. I'm Michael 6 00:00:22,860 --> 00:00:24,780 Michael Thompson: Thompson. And hello, Sean Aylmer. 7 00:00:25,410 --> 00:00:28,529 Sean Aylmer: Oh, very excited today, Michael. It's a great show. So 8 00:00:28,530 --> 00:00:30,540 Sean Aylmer: much corporate news. In fact, the last couple of days 9 00:00:30,540 --> 00:00:34,109 Sean Aylmer: we haven't had a lot of corporate news. Today, chock- 10 00:00:34,109 --> 00:00:34,678 Sean Aylmer: full of it. 11 00:00:34,769 --> 00:00:38,250 Michael Thompson: Well, I've got to say any day that starts with 12 00:00:38,370 --> 00:00:41,159 Michael Thompson: an airline story as our lead is going to be 13 00:00:41,159 --> 00:00:41,790 Michael Thompson: a good day. 14 00:00:42,180 --> 00:00:43,890 Sean Aylmer: I agree, totally agree. 15 00:00:43,950 --> 00:00:45,990 Michael Thompson: I'm very excited. I need to mention though before we 16 00:00:45,990 --> 00:00:48,598 Michael Thompson: get into that, you've got an interview coming up today 17 00:00:48,598 --> 00:00:52,409 Michael Thompson: with Tim Fung, who is a co- founder and CEO 18 00:00:52,409 --> 00:00:53,520 Michael Thompson: of Airtasker. 19 00:00:54,000 --> 00:00:57,959 Sean Aylmer: Yes. So we talk all about what people are doing 20 00:00:57,960 --> 00:00:59,880 Sean Aylmer: to make extra money. We know that the cost of 21 00:00:59,880 --> 00:01:02,610 Sean Aylmer: living crisis is real and people are paying more for 22 00:01:02,610 --> 00:01:06,690 Sean Aylmer: petrol and energy and things like that. And so Airtasker 23 00:01:06,690 --> 00:01:09,600 Sean Aylmer: has found that across the globe, not just in Australia, 24 00:01:10,080 --> 00:01:12,569 Sean Aylmer: people are looking for extra work and we talk about 25 00:01:12,569 --> 00:01:14,819 Sean Aylmer: what they're looking for, what they can do, what it 26 00:01:14,819 --> 00:01:18,449 Sean Aylmer: means for consumers, trends like that. Really fascinating chat about 27 00:01:18,450 --> 00:01:19,410 Sean Aylmer: the real economy. 28 00:01:19,680 --> 00:01:22,050 Michael Thompson: Yeah, it is a good one. It's coming up later 29 00:01:22,050 --> 00:01:26,309 Michael Thompson: on Sean, but first, the main story today, Qantas is 30 00:01:26,309 --> 00:01:29,609 Michael Thompson: on track to fly Sydney to London nonstop. That is 31 00:01:29,609 --> 00:01:34,290 Michael Thompson: a 19- hour journey in 2025, and it seems the 32 00:01:34,290 --> 00:01:37,440 Michael Thompson: ultra long haul flights are expected to be very lucrative 33 00:01:37,440 --> 00:01:38,100 Michael Thompson: for the airline. 34 00:01:38,730 --> 00:01:41,670 Sean Aylmer: In fact, the national carrier reckons in the first full 35 00:01:41,670 --> 00:01:45,178 Sean Aylmer: year that it's flying nonstop East Coast to London and 36 00:01:45,179 --> 00:01:49,260 Sean Aylmer: New York earnings will jump by about $ 400 million. Now, that's 37 00:01:49,289 --> 00:01:52,950 Sean Aylmer: not much more than what all international routes contribute to 38 00:01:52,950 --> 00:01:55,560 Sean Aylmer: the bottom line right now. Qantas says it hopes to 39 00:01:55,560 --> 00:01:59,550 Sean Aylmer: have 12 new Airbus A350 jets flying the route by 40 00:01:59,550 --> 00:02:03,599 Sean Aylmer: 2030. Chief executive Alan Joyce at his very last investor 41 00:02:03,599 --> 00:02:07,859 Sean Aylmer: presentation day yesterday said the new aircraft have started arriving 42 00:02:07,860 --> 00:02:12,210 Sean Aylmer: and will transform the carrier's network. Analysts forecast Qantas's fleet 43 00:02:12,210 --> 00:02:15,360 Sean Aylmer: renewal project will cost up to $ 15 billion over the 44 00:02:15,360 --> 00:02:19,769 Sean Aylmer: next five years and involve nearly 300 new aircraft over 45 00:02:19,770 --> 00:02:24,060 Sean Aylmer: the next decade. They are next- generation aircraft, Airbus 220s, 46 00:02:24,240 --> 00:02:28,320 Sean Aylmer: Boeing 787s, and Airbus 320s. Qantas is promising they'll be 47 00:02:28,320 --> 00:02:32,910 Sean Aylmer: more comfortable, less noisy, and with fewer carbon emissions. Also 48 00:02:32,910 --> 00:02:36,570 Sean Aylmer: at the Investor Day, the group forecast Qantas loyalty to 49 00:02:36,570 --> 00:02:40,410 Sean Aylmer: deliver up to $ 1 billion of earnings by 2030, powered 50 00:02:40,410 --> 00:02:45,750 Sean Aylmer: by targeted expansion in financial services and insurance. Uhm, interesting. 51 00:02:46,020 --> 00:02:49,470 Sean Aylmer: It was enough to push Qantas's share price up 2. 6% yesterday. 52 00:02:49,800 --> 00:02:51,779 Michael Thompson: Sean, there's a lot in all of that and I 53 00:02:51,780 --> 00:02:56,280 Michael Thompson: think that element of expansion in financial services and insurance 54 00:02:56,280 --> 00:02:59,279 Michael Thompson: sounds fascinating and seems kind of drifting further and further 55 00:02:59,279 --> 00:03:01,650 Michael Thompson: away from the core business of flying planes. And it 56 00:03:01,650 --> 00:03:05,070 Michael Thompson: all kind of sounds good from an investor viewpoint. What 57 00:03:05,070 --> 00:03:06,210 Michael Thompson: about the customers? 58 00:03:06,540 --> 00:03:08,100 Sean Aylmer: What about you, is that what you're asking? 59 00:03:08,280 --> 00:03:10,380 Michael Thompson: I was trying to kind of dress it up a 60 00:03:10,380 --> 00:03:12,240 Michael Thompson: little bit to make it sound like I was asking 61 00:03:12,240 --> 00:03:15,059 Michael Thompson: on behalf of all customers, but yes, if we just 62 00:03:15,059 --> 00:03:17,099 Michael Thompson: kind of boil it all down to one person. What 63 00:03:17,100 --> 00:03:17,760 Michael Thompson: about me, Sean? 64 00:03:17,940 --> 00:03:20,220 Sean Aylmer: Yes. Well, yesterday was really about the group's long- term 65 00:03:20,220 --> 00:03:24,060 Sean Aylmer: strategy, though they did have some announcements about short- term 66 00:03:24,060 --> 00:03:27,689 Sean Aylmer: changes as well. There'll be changes to the boarding process 67 00:03:27,690 --> 00:03:30,450 Sean Aylmer: from November this year. You know when you were overseas 68 00:03:30,450 --> 00:03:34,320 Sean Aylmer: mostly they have segments, so you might be A B, 69 00:03:34,320 --> 00:03:36,480 Sean Aylmer: C, D, E segment and you've got a board in 70 00:03:36,480 --> 00:03:39,540 Sean Aylmer: your segment. So that's what Qantas wants to start doing 71 00:03:39,540 --> 00:03:42,660 Sean Aylmer: rather than just a massive long line that snakes into 72 00:03:42,660 --> 00:03:46,590 Sean Aylmer: the next arrivals area. They also want to change the 73 00:03:46,590 --> 00:03:49,080 Sean Aylmer: Qantas app. In fact, they're overhauling it at the moment and you'll 74 00:03:49,080 --> 00:03:51,270 Sean Aylmer: actually be able to track your luggage to make sure 75 00:03:51,270 --> 00:03:54,119 Sean Aylmer: it's on the plane with you. Now, I don't know 76 00:03:54,119 --> 00:03:55,830 Sean Aylmer: what you do when you're 40, 000 feet in the air 77 00:03:55,830 --> 00:03:57,240 Sean Aylmer: and you realize your luggage isn't with you. 78 00:03:57,390 --> 00:03:59,670 Michael Thompson: Well, wouldn't that just be the worst to be tracking 79 00:03:59,670 --> 00:04:02,429 Michael Thompson: your luggage and just go, there's nothing you can do 80 00:04:02,429 --> 00:04:02,880 Michael Thompson: about it. 81 00:04:02,880 --> 00:04:03,360 Sean Aylmer: No. 82 00:04:03,360 --> 00:04:06,270 Michael Thompson: You can just but track it and just watch yourself getting further 83 00:04:06,270 --> 00:04:09,509 Michael Thompson: and further away. Or, if you're particularly unlucky, actually watch 84 00:04:09,509 --> 00:04:11,009 Michael Thompson: it going in the opposite direction. 85 00:04:12,900 --> 00:04:15,660 Sean Aylmer: Yes. Qantas also a plan to expand the current range of 86 00:04:15,660 --> 00:04:20,130 Sean Aylmer: redemption options for frequent flyers and the national carrier is 87 00:04:20,130 --> 00:04:24,480 Sean Aylmer: promising and I quote, " continued," focus on the continued investment 88 00:04:24,540 --> 00:04:27,599 Sean Aylmer: in low fares. Oh, low fares. 89 00:04:27,630 --> 00:04:29,068 Michael Thompson: So when's that due to start? 90 00:04:29,069 --> 00:04:33,270 Sean Aylmer: Yeah, exactly. Not quite sure. Anyway, plenty going on at Qantas. 91 00:04:33,330 --> 00:04:36,359 Michael Thompson: Yeah, big big day for Qantas. Local markets, how did 92 00:04:36,360 --> 00:04:37,200 Michael Thompson: they perform yesterday? 93 00:04:37,589 --> 00:04:42,089 Sean Aylmer: S& P/ ASX 200 closed down just a touch to 7, 209 94 00:04:42,089 --> 00:04:44,670 Sean Aylmer: points. All the major banks were lower. ANZ was the 95 00:04:44,670 --> 00:04:46,979 Sean Aylmer: worst of the top 200. It was off 1. 4%. 96 00:04:47,730 --> 00:04:52,950 Sean Aylmer: Telstra, Woolies, Wesfarmers, BHP and CSL all ended higher. Among the large 97 00:04:52,950 --> 00:04:55,409 Sean Aylmer: caps, there really wasn't many big movers at all. The 98 00:04:55,410 --> 00:04:58,110 Sean Aylmer: worst performer was Paladin, it tumbled 20%. I'll tell you 99 00:04:58,110 --> 00:05:00,509 Sean Aylmer: more about that in a moment. And I'll just quickly 100 00:05:00,509 --> 00:05:02,820 Sean Aylmer: jump into international markets here, Michael oil is off a 101 00:05:02,820 --> 00:05:06,059 Sean Aylmer: bit so to gold. Coal prices continue their slide and 102 00:05:06,059 --> 00:05:09,150 Sean Aylmer: at their lowest level since January 2022. And the Aussie 103 00:05:09,150 --> 00:05:11,610 Sean Aylmer: dollar is trading just above 65 US cents. 104 00:05:11,670 --> 00:05:13,950 Michael Thompson: All right. We have some big stories to get through 105 00:05:13,950 --> 00:05:15,719 Michael Thompson: this morning, Sean. We'll be back in a moment with the 106 00:05:15,719 --> 00:05:24,599 Michael Thompson: rest of the day's business news. Sean, the building sector 107 00:05:24,600 --> 00:05:27,990 Michael Thompson: is in a slump with approvals for new dwellings down 108 00:05:27,990 --> 00:05:30,870 Michael Thompson: 24% compared to a year ago. 109 00:05:31,440 --> 00:05:34,860 Sean Aylmer: Bad news for construction companies, for builders, for tradies, but 110 00:05:34,860 --> 00:05:38,099 Sean Aylmer: it's also bad news for the economy because construction has 111 00:05:38,099 --> 00:05:41,369 Sean Aylmer: this big multiplier effect to the rest of the economy. 112 00:05:41,369 --> 00:05:43,050 Sean Aylmer: If someone builds a house, they need to fill it 113 00:05:43,050 --> 00:05:47,850 Sean Aylmer: with stuff. Furniture, TVs, fridges, not so nice paintings in 114 00:05:47,850 --> 00:05:48,600 Sean Aylmer: some cases. 115 00:05:50,160 --> 00:05:52,020 Michael Thompson: There's a fair amount of judgment in that one, Sean. 116 00:05:52,021 --> 00:05:52,290 Sean Aylmer: Yes. 117 00:05:52,800 --> 00:05:54,510 Michael Thompson: There's definitely a story attached to that. 118 00:05:54,719 --> 00:05:58,020 Sean Aylmer: Yes, we might leave it. Anyway, this economic multiplier effect 119 00:05:58,080 --> 00:06:00,450 Sean Aylmer: is very, very large in construction. I think in fact, 120 00:06:00,450 --> 00:06:04,110 Sean Aylmer: I think construction actually has the biggest multiplier effect. So 121 00:06:04,140 --> 00:06:06,988 Sean Aylmer: when things are slow in construction, it's bad for the 122 00:06:06,990 --> 00:06:10,979 Sean Aylmer: economy. Last month, building approvals felt 8% according to the 123 00:06:10,980 --> 00:06:15,839 Sean Aylmer: Bureau of Statistics. Hardest hit have been apartment buildings. Now, 124 00:06:15,870 --> 00:06:18,719 Sean Aylmer: given the influx of international students expected in coming years, 125 00:06:19,020 --> 00:06:22,049 Sean Aylmer: that's really bad news for renters because that will push 126 00:06:22,050 --> 00:06:25,740 Sean Aylmer: up the price when more people wanting apartments, likely they 127 00:06:25,740 --> 00:06:28,650 Sean Aylmer: push up the price. Mostly it's been, I mean the 128 00:06:28,650 --> 00:06:32,130 Sean Aylmer: dearth of new building approvals is all about interest rates 129 00:06:32,130 --> 00:06:35,580 Sean Aylmer: rising, cost blowing out, and being very hard to find 130 00:06:35,580 --> 00:06:39,300 Sean Aylmer: labor. Michael, I suspect chronic underbuilding is emerging as a 131 00:06:39,300 --> 00:06:40,740 Sean Aylmer: real problem for the economy. 132 00:06:41,520 --> 00:06:43,620 Michael Thompson: Did Jackie buy a painting that you don't like? 133 00:06:43,680 --> 00:06:45,029 Sean Aylmer: It's excellent. It's beautiful. 134 00:06:46,650 --> 00:06:48,630 Michael Thompson: It feels like we could unpack this. And you know 135 00:06:48,630 --> 00:06:49,738 Michael Thompson: what we could even do? 136 00:06:49,980 --> 00:06:51,719 Sean Aylmer: Jackie listens to this show. Let's just move on. 137 00:06:51,719 --> 00:06:53,490 Michael Thompson: Oh, let's move on. Okay, pretend we didn't say anything. 138 00:06:53,490 --> 00:06:53,878 Michael Thompson: Hi, Jackie. 139 00:06:53,879 --> 00:06:53,939 Sean Aylmer: Yeah. 140 00:06:55,020 --> 00:06:57,330 Michael Thompson: Sean, let's move on. This is a big story, gaming 141 00:06:57,330 --> 00:07:02,760 Michael Thompson: giant Crown has agreed to a $ 450 million penalty over anti- 142 00:07:02,760 --> 00:07:06,000 Michael Thompson: money laundering and counter- terrorism breaches at its Melbourne and 143 00:07:06,000 --> 00:07:06,930 Michael Thompson: Perth operations. 144 00:07:07,320 --> 00:07:10,949 Sean Aylmer: The agreement with the financial crimes regulator AUSTRAC comes following 145 00:07:10,949 --> 00:07:13,890 Sean Aylmer: breaches of gambling laws at the Melbourne Casino over more 146 00:07:13,890 --> 00:07:16,530 Sean Aylmer: than a decade. As part of the settlement Crown has 147 00:07:16,530 --> 00:07:20,370 Sean Aylmer: admitted its casinos failed to appropriately assess the money laundering 148 00:07:20,370 --> 00:07:24,210 Sean Aylmer: and terrorism financing risks they faced and to identify and 149 00:07:24,210 --> 00:07:26,820 Sean Aylmer: respond to changes in risk over time. They didn't have 150 00:07:26,820 --> 00:07:30,000 Sean Aylmer: appropriate controls in place. They didn't have an appropriate transaction 151 00:07:30,000 --> 00:07:34,050 Sean Aylmer: monitoring program in place. Bit of a debacle really. Crown 152 00:07:34,050 --> 00:07:38,790 Sean Aylmer: has previously been fined $ 230 million by Victorian gambling regulators. 153 00:07:38,790 --> 00:07:41,759 Sean Aylmer: It also faces other investigations. Of course, it's now owned 154 00:07:41,759 --> 00:07:44,370 Sean Aylmer: by Blackstone who bought it off James Packer and other 155 00:07:44,370 --> 00:07:47,280 Sean Aylmer: shareholders in June last year for $ 8. 9 billion. 156 00:07:48,420 --> 00:07:51,810 Michael Thompson: Sean, the boss of Wesfarmers, Rob Scott believes the glory 157 00:07:51,810 --> 00:07:55,320 Michael Thompson: days of government largess, low- interest rates, and good times 158 00:07:55,320 --> 00:07:58,980 Michael Thompson: for companies including retailers is well and truly over and 159 00:07:58,980 --> 00:08:03,419 Michael Thompson: we're moving into what he calls somewhat ominously, the big squeeze. 160 00:08:04,109 --> 00:08:08,580 Sean Aylmer: So Wesfarmers is Australia's 10th largest company and apart from Bunnings, 161 00:08:08,610 --> 00:08:13,410 Sean Aylmer: Officeworks, Kmart, and catch. com, the online retailer, it runs 162 00:08:13,410 --> 00:08:16,229 Sean Aylmer: a big chemicals business. It's looking at health and it's 163 00:08:16,230 --> 00:08:20,730 Sean Aylmer: looking at lithium. This business has its finger in many 164 00:08:20,759 --> 00:08:23,909 Sean Aylmer: pies, so to speak. So Rob Scott is speaking from 165 00:08:23,910 --> 00:08:27,510 Sean Aylmer: a place of knowledge. At yesterday's Investor Day, Scott said 166 00:08:27,510 --> 00:08:31,290 Sean Aylmer: the honeymoon is over for many companies and retailers. Shoppers 167 00:08:31,290 --> 00:08:34,920 Sean Aylmer: are trading down to cheaper products, which probably helps Wesfarmers 168 00:08:34,920 --> 00:08:38,250 Sean Aylmer: given Kmart, Bunnings, et cetera. And he says value will 169 00:08:38,250 --> 00:08:41,670 Sean Aylmer: become even more important to customers. Businesses also face an 170 00:08:41,670 --> 00:08:44,309 Sean Aylmer: escalation in wage pressures and a post COVID drop in 171 00:08:44,309 --> 00:08:48,780 Sean Aylmer: productivity. Hence, the big squeeze. Of course, Bunnings is the 172 00:08:48,780 --> 00:08:52,620 Sean Aylmer: powerhouse of Wesfarmer Retailers. It's thinking about pushing more into 173 00:08:52,620 --> 00:08:56,069 Sean Aylmer: pets and pet care and more into the power tools 174 00:08:56,070 --> 00:08:58,500 Sean Aylmer: business. That's right up your alley, isn't it, Michael? The 175 00:08:58,500 --> 00:08:59,669 Sean Aylmer: power tools business. 176 00:09:00,510 --> 00:09:02,040 Michael Thompson: We both know Sean, that it's not. 177 00:09:02,340 --> 00:09:03,959 Sean Aylmer: No. Right. Let's move on. 178 00:09:04,140 --> 00:09:05,850 Michael Thompson: Now, onto something that is up your alley. 179 00:09:06,390 --> 00:09:09,929 Sean Aylmer: Yeah, botox. So yesterday Scott said Wesfarmers won't make a 180 00:09:09,929 --> 00:09:12,750 Sean Aylmer: high bid for SILK Laser, which is primarily a botox 181 00:09:12,750 --> 00:09:16,289 Sean Aylmer: group. A higher bid came in for that group. Wesfarmers made 182 00:09:16,289 --> 00:09:18,238 Sean Aylmer: a bid for it. A higher bid came in from a 183 00:09:18,240 --> 00:09:21,240 Sean Aylmer: Hong Kong- based suitor last week and Wes said, " Go 184 00:09:21,240 --> 00:09:21,449 Sean Aylmer: for it." 185 00:09:21,990 --> 00:09:23,370 Michael Thompson: I don't think either of us came out of that 186 00:09:23,370 --> 00:09:25,350 Michael Thompson: story looking particularly good, did we, Sean? 187 00:09:25,410 --> 00:09:26,910 Sean Aylmer: Well, looking better because of the botox. 188 00:09:27,000 --> 00:09:30,990 Michael Thompson: Of course. Nice and tight. Now federal treasury is overhauling 189 00:09:30,990 --> 00:09:36,208 Michael Thompson: its oversight of consultants following the PWC tax scandal, including 190 00:09:36,300 --> 00:09:40,170 Michael Thompson: Sean, strengthening deeds of confidentiality seems kind of pretty important 191 00:09:40,170 --> 00:09:40,590 Michael Thompson: after this. 192 00:09:40,590 --> 00:09:43,710 Sean Aylmer: Yes, no surprises there. Senate estimates are going on at 193 00:09:43,710 --> 00:09:45,720 Sean Aylmer: the moment. Plenty of stuff comes out of these meetings. 194 00:09:46,110 --> 00:09:49,860 Sean Aylmer: Treasury official Roseanne Kelly said the bureaucracy had more accountability 195 00:09:49,860 --> 00:09:53,488 Sean Aylmer: at the advisory level and with industry bodies now. Yesterday 196 00:09:53,490 --> 00:09:56,520 Sean Aylmer: treasury was criticized in estimates for knowing about the leaks 197 00:09:56,520 --> 00:10:00,600 Sean Aylmer: by PWC for five years before talking about them publicly. 198 00:10:00,900 --> 00:10:03,809 Sean Aylmer: The leaks gave the consulting firm an unfair advantage, winning 199 00:10:03,809 --> 00:10:07,770 Sean Aylmer: business. Also enabled multinationals to pay less tax. On the 200 00:10:07,770 --> 00:10:10,889 Sean Aylmer: very same topic, Finance Minister Katie Gallagher said while the 201 00:10:10,889 --> 00:10:14,160 Sean Aylmer: government has taken steps in response to the scandal, canceling 202 00:10:14,160 --> 00:10:18,300 Sean Aylmer: existing procurement contracts is not a viable option. It came 203 00:10:18,300 --> 00:10:20,940 Sean Aylmer: after Greens lead Adam Bandt called for an immediate review 204 00:10:20,940 --> 00:10:25,228 Sean Aylmer: into PWC's current contracts with the federal government. Away from 205 00:10:25,230 --> 00:10:29,309 Sean Aylmer: the PWC saga, Treasury said it's not far off providing 206 00:10:29,309 --> 00:10:33,300 Sean Aylmer: recommendations to Jim Chalmers, the treasurer of course, on how 207 00:10:33,300 --> 00:10:37,320 Sean Aylmer: to modernize the Productivity Commission. Don't you reckon there's irony 208 00:10:37,320 --> 00:10:39,390 Sean Aylmer: in that? How to modernize the Productivity Commission. 209 00:10:40,410 --> 00:10:43,080 Michael Thompson: One would think that the Productivity Commission should already be 210 00:10:43,200 --> 00:10:46,410 Michael Thompson: super modern and super productive and needs no improvement. 211 00:10:47,190 --> 00:10:51,328 Sean Aylmer: Anyway. Not the case apparently. Also, Treasury Secretary Stephen Kennedy 212 00:10:51,330 --> 00:10:53,848 Sean Aylmer: said that nearly half the influx of temporary migrants over 213 00:10:53,850 --> 00:10:57,419 Sean Aylmer: the next four years, which will be in the hundreds 214 00:10:57,420 --> 00:11:01,169 Sean Aylmer: of thousands of people, half of them will be international students. 215 00:11:02,460 --> 00:11:04,859 Michael Thompson: Sean, you mentioned this one earlier in the show. Uranium 216 00:11:04,859 --> 00:11:09,030 Michael Thompson: miner Paladin energy's share price tumbled 20% yesterday before it 217 00:11:09,030 --> 00:11:13,350 Michael Thompson: requested a trading halt. It came after the Namibian government 218 00:11:13,380 --> 00:11:16,710 Michael Thompson: threatened to nationalize some natural resources. 219 00:11:17,160 --> 00:11:21,600 Sean Aylmer: Paladin own 75% of the Langer Heinrich mine in Namibia, 220 00:11:21,900 --> 00:11:24,629 Sean Aylmer: which has been shut since August 2018. But it's in 221 00:11:24,629 --> 00:11:27,510 Sean Aylmer: the midst of a big spin to get it going again. 222 00:11:28,020 --> 00:11:31,828 Sean Aylmer: Namibia is a very large uranium producer and on Monday night 223 00:11:31,830 --> 00:11:35,759 Sean Aylmer: the Mines and Energy Minister advocated for greater government control. 224 00:11:35,759 --> 00:11:39,479 Sean Aylmer: He suggested the state should own a minimum equity percentage 225 00:11:39,750 --> 00:11:43,319 Sean Aylmer: in all mining companies and petroleum production and it shouldn't 226 00:11:43,320 --> 00:11:47,130 Sean Aylmer: have to pay for that. The other local operator in 227 00:11:47,130 --> 00:11:51,150 Sean Aylmer: Namibia, at least the ASX- listed operator, is Deep Yellow, 228 00:11:51,150 --> 00:11:54,360 Sean Aylmer: its share price fell 5%. Now, I must say I 229 00:11:54,360 --> 00:11:58,320 Sean Aylmer: don't know much about Namibia, so I went and looked 230 00:11:58,320 --> 00:12:01,290 Sean Aylmer: it up yesterday. A good trivia question for you, Michael. 231 00:12:01,290 --> 00:12:06,570 Sean Aylmer: I know you are trivia king. Namibia has five bordering 232 00:12:06,990 --> 00:12:11,490 Sean Aylmer: nations, as well as an ocean, name two of those nations. 233 00:12:12,480 --> 00:12:13,890 Michael Thompson: Botswana, definitely. 234 00:12:13,980 --> 00:12:15,390 Sean Aylmer: Yeah. Well done. Well done. 235 00:12:15,480 --> 00:12:18,030 Michael Thompson: Because I always wanted to live in Botswana of all places. 236 00:12:18,539 --> 00:12:18,540 Sean Aylmer: Ah, really? 237 00:12:18,540 --> 00:12:22,559 Michael Thompson: Yeah, I spent a lot of time on South Africa 238 00:12:22,559 --> 00:12:24,090 Michael Thompson: is obviously another one of the ones that borders it, 239 00:12:24,090 --> 00:12:25,920 Michael Thompson: but I spent a lot of time on South African 240 00:12:25,920 --> 00:12:29,969 Michael Thompson: and Botswana real estate websites trying to find a place 241 00:12:29,969 --> 00:12:30,839 Michael Thompson: to live. 242 00:12:30,840 --> 00:12:32,399 Sean Aylmer: Really, why? 243 00:12:32,639 --> 00:12:35,130 Michael Thompson: Oh, I read a lot of Wilber Smith books, Sean. 244 00:12:35,790 --> 00:12:35,790 Sean Aylmer: Ah, I see. 245 00:12:35,790 --> 00:12:38,640 Michael Thompson: And I think I was sucked into the romance of it. 246 00:12:39,000 --> 00:12:41,280 Sean Aylmer: Okay, now, so you just answered it without a second 247 00:12:41,280 --> 00:12:43,559 Sean Aylmer: thought, Botswana and South Africa. Can you give me a 248 00:12:43,559 --> 00:12:44,040 Sean Aylmer: third one? 249 00:12:44,610 --> 00:12:45,210 Michael Thompson: Zimbabwe. 250 00:12:46,320 --> 00:12:48,328 Sean Aylmer: Fourth, please. Come on. 251 00:12:50,759 --> 00:12:51,389 Michael Thompson: Zambia. 252 00:12:52,350 --> 00:12:56,968 Sean Aylmer: Ooh. Ah. Let's go for five. The Quintella, no Quinn 253 00:12:56,970 --> 00:12:59,338 Sean Aylmer: something is four, isn't it? Let's go for five out of five. So 254 00:12:59,340 --> 00:13:02,370 Sean Aylmer: we've got Zambia, Zimbabwe, Botswana, South Africa and? 255 00:13:03,240 --> 00:13:06,059 Michael Thompson: Oh, no. I'm out. I'm gone. I'm sorry, Sean. I 256 00:13:06,059 --> 00:13:07,170 Michael Thompson: can only do four. 257 00:13:07,590 --> 00:13:08,220 Sean Aylmer: Angola. 258 00:13:11,279 --> 00:13:13,111 Michael Thompson: Oh, okay. All right. 259 00:13:13,111 --> 00:13:15,750 Sean Aylmer: Well done. You know what I reckon 80%. Did you hear how uncertain I was as I 260 00:13:15,750 --> 00:13:19,078 Sean Aylmer: said that 80? You did much better on geography than maths. 261 00:13:19,140 --> 00:13:21,208 Michael Thompson: Yep, that's right. 80%, I reckon that's pretty good. That's 262 00:13:21,210 --> 00:13:21,930 Michael Thompson: a pass mark. 263 00:13:22,080 --> 00:13:23,040 Sean Aylmer: Yeah, definitely. Well done. 264 00:13:23,730 --> 00:13:27,299 Michael Thompson: Let's move on, Sean. Australian customers of Binance are so 265 00:13:27,299 --> 00:13:30,720 Michael Thompson: desperate to quit the Dubai based crypto exchange that they 266 00:13:30,720 --> 00:13:35,040 Michael Thompson: are willing to accept $ 6, 000 per unit less to 267 00:13:35,040 --> 00:13:35,640 Michael Thompson: liquidate their bitcoin. 268 00:13:35,640 --> 00:13:41,968 Sean Aylmer: So Binance will stop facilitating all Australian dollar withdrawals today 269 00:13:42,059 --> 00:13:46,020 Sean Aylmer: after its banking partner Cusco wound down its partnership citing 270 00:13:46,020 --> 00:13:49,770 Sean Aylmer: fraud concerns according to the Financial Review. Westpac has banned 271 00:13:49,770 --> 00:13:53,940 Sean Aylmer: customers from transferring to Binance as well. So yesterday basically 272 00:13:53,940 --> 00:13:58,170 Sean Aylmer: Binance was selling one Bitcoin for about 36,000 Aussie dollars. 273 00:13:58,469 --> 00:14:02,700 Sean Aylmer: The other local players were charging 42, 000 Aussie dollars. Problem 274 00:14:02,700 --> 00:14:05,490 Sean Aylmer: is you end up holding it with Binance. Now, Binance 275 00:14:05,490 --> 00:14:08,578 Sean Aylmer: has holds 1 million Australian customers that any Australian dollars 276 00:14:08,580 --> 00:14:12,480 Sean Aylmer: left on its books by Wednesday, today, will be converted 277 00:14:12,480 --> 00:14:16,949 Sean Aylmer: into USDT, a type of cryptocurrency pegged to the US 278 00:14:16,950 --> 00:14:21,270 Sean Aylmer: dollar. Of course, Binance has its own US dollar- backed 279 00:14:21,270 --> 00:14:26,010 Sean Aylmer: stable coin, which is called BUSD as in Binance USD. But 280 00:14:26,010 --> 00:14:29,340 Sean Aylmer: the issue of that one has also stopped working with 281 00:14:29,340 --> 00:14:32,400 Sean Aylmer: Binance, did that back in February. So it can't issue 282 00:14:32,400 --> 00:14:34,799 Sean Aylmer: that as well. Bit of a mess really, Michael, bit 283 00:14:34,800 --> 00:14:35,280 Sean Aylmer: of a mess. 284 00:14:35,370 --> 00:14:37,349 Michael Thompson: God, you can say that again. I was kind of 285 00:14:37,349 --> 00:14:41,939 Michael Thompson: following you along there, but that actually just sounds really, 286 00:14:41,940 --> 00:14:42,779 Michael Thompson: really ugly. 287 00:14:43,020 --> 00:14:48,720 Sean Aylmer: You do not want to hold cryptocurrencies in Binance on the Binance Exchange. 288 00:14:48,900 --> 00:14:51,690 Michael Thompson: No, it doesn't sound like it. Now Sean, one last 289 00:14:51,690 --> 00:14:54,179 Michael Thompson: one before we get to international news. Toll roads group, 290 00:14:54,179 --> 00:14:58,919 Michael Thompson: Atlas Arteria held its annual general meeting yesterday and shareholders 291 00:14:59,190 --> 00:15:01,710 Michael Thompson: voted against the group's remuneration report. 292 00:15:02,130 --> 00:15:05,910 Sean Aylmer: Proxy votes show a 35% vote against the report triggering a so- 293 00:15:05,910 --> 00:15:08,700 Sean Aylmer: called first strike. A second one next year means the 294 00:15:08,700 --> 00:15:11,580 Sean Aylmer: board of the group is spilled. Chair Debbie Gooden said 295 00:15:11,639 --> 00:15:15,570 Sean Aylmer: the company will listen to the protest vote. Some shareholders 296 00:15:15,570 --> 00:15:18,510 Sean Aylmer: haven't been happy about Atlas's recent purchase of a two 297 00:15:18,510 --> 00:15:22,230 Sean Aylmer: third stake in Chicago's Skyway motorway in the US. Main 298 00:15:22,230 --> 00:15:24,120 Sean Aylmer: reason we're doing this story, Michael, is of course you 299 00:15:24,120 --> 00:15:26,880 Sean Aylmer: loved the name Skyway for a motorway. 300 00:15:27,059 --> 00:15:29,490 Michael Thompson: Oh, because it just makes it sound so exotic. It 301 00:15:29,490 --> 00:15:31,350 Michael Thompson: makes it sound like you're driving through the clouds. 302 00:15:31,620 --> 00:15:33,299 Sean Aylmer: And then we looked at the photos and it was just 303 00:15:33,299 --> 00:15:33,960 Sean Aylmer: another toll way. 304 00:15:34,020 --> 00:15:36,329 Michael Thompson: But it should be called the Chicago Ground way. 305 00:15:36,719 --> 00:15:40,140 Sean Aylmer: Yes, that's right. The other part of this story, which I love, 306 00:15:40,380 --> 00:15:42,510 Sean Aylmer: was that they came out yesterday and said it's French toll 307 00:15:42,510 --> 00:15:45,780 Sean Aylmer: roads are doing well. Couple of reasons, really good ski 308 00:15:45,780 --> 00:15:49,049 Sean Aylmer: season. People are driving up to the ski fields in 309 00:15:49,049 --> 00:15:52,410 Sean Aylmer: France, so good on them. Also, we've had all the 310 00:15:52,410 --> 00:15:57,150 Sean Aylmer: strikes in that country about the pensions, so there's been 311 00:15:57,150 --> 00:16:00,510 Sean Aylmer: fewer trains running and so therefore more people are using 312 00:16:00,660 --> 00:16:02,849 Sean Aylmer: toll roads. Don't you think that's quite funny? 313 00:16:03,179 --> 00:16:04,710 Michael Thompson: Yeah, I think that is quite interesting. I do have 314 00:16:04,710 --> 00:16:07,380 Michael Thompson: a question though about this and it's actually a serious 315 00:16:07,380 --> 00:16:09,779 Michael Thompson: question. I know that will come as some surprise, but 316 00:16:10,320 --> 00:16:13,800 Michael Thompson: when there is a vote against a remuneration report, is 317 00:16:13,800 --> 00:16:18,000 Michael Thompson: that against the remuneration relating to the executives of the 318 00:16:18,210 --> 00:16:21,900 Michael Thompson: company or the director's fees, et cetera? It's more towards 319 00:16:21,900 --> 00:16:24,121 Michael Thompson: the management, isn't it? 320 00:16:24,121 --> 00:16:25,170 Sean Aylmer: It can be both actually. 321 00:16:25,380 --> 00:16:29,760 Michael Thompson: Okay. So it's essentially the most effective way for shareholders 322 00:16:29,760 --> 00:16:31,920 Michael Thompson: to send a message to the company that they are 323 00:16:31,920 --> 00:16:32,490 Michael Thompson: not happy. 324 00:16:32,880 --> 00:16:34,980 Sean Aylmer: Yeah. And if you do it twice, the board has 325 00:16:34,980 --> 00:16:38,849 Sean Aylmer: to spill and when the board spills, they can get 326 00:16:38,910 --> 00:16:44,429 Sean Aylmer: voted back in. A couple have been spilled, but generally 327 00:16:44,429 --> 00:16:45,300 Sean Aylmer: that hasn't happened. 328 00:16:45,599 --> 00:16:48,331 Michael Thompson: So essentially it serves as that kind of that first warning to ... 329 00:16:48,331 --> 00:16:51,150 Sean Aylmer: Yeah, it certainly sends a message. The irony of course 330 00:16:51,150 --> 00:16:54,359 Sean Aylmer: is that 35% voted against it. So the people will 331 00:16:54,870 --> 00:16:56,280 Sean Aylmer: still get their remuneration. 332 00:16:56,370 --> 00:16:56,610 Michael Thompson: Yeah. 333 00:16:57,360 --> 00:16:59,940 Sean Aylmer: But next year they'll be much more careful about how 334 00:16:59,940 --> 00:17:00,180 Sean Aylmer: they do it. 335 00:17:00,180 --> 00:17:03,480 Michael Thompson: Okay. All right. International news now Sean and today is 336 00:17:03,480 --> 00:17:05,309 Michael Thompson: a cracker of a day because we started the show 337 00:17:05,309 --> 00:17:07,918 Michael Thompson: with a story about an airline Qantas, and now we're talking 338 00:17:07,920 --> 00:17:10,859 Michael Thompson: about space and in particular the space race, which is 339 00:17:10,859 --> 00:17:15,359 Michael Thompson: back on with China yesterday, sending three astronauts into space, 340 00:17:15,359 --> 00:17:16,680 Michael Thompson: including their first civilian. 341 00:17:17,309 --> 00:17:19,589 Sean Aylmer: And that came a day after China announced plans to 342 00:17:19,590 --> 00:17:23,940 Sean Aylmer: land astronauts on the moon before 2030. Of course, NASA 343 00:17:23,940 --> 00:17:26,698 Sean Aylmer: is aiming to send American astronauts back to the moon 344 00:17:26,700 --> 00:17:31,408 Sean Aylmer: by 2025. Administrator Bill Nelson, this is the NASA administrator, 345 00:17:31,410 --> 00:17:35,099 Sean Aylmer: Bill Nelson has described a Cold War like space race. 346 00:17:35,099 --> 00:17:38,490 Sean Aylmer: Only this time it's US v China, not US v 347 00:17:38,490 --> 00:17:41,369 Sean Aylmer: the Soviet Union. Yesterday's launch, we'll send the crew to 348 00:17:41,369 --> 00:17:44,550 Sean Aylmer: the Chinese space station. They're the first crew to visit 349 00:17:44,550 --> 00:17:48,330 Sean Aylmer: since it became fully operational late last year. It's expected 350 00:17:48,359 --> 00:17:51,570 Sean Aylmer: 15 years in orbit means the station could become the 351 00:17:51,570 --> 00:17:55,859 Sean Aylmer: sole permanent research facility after the International Space Station is 352 00:17:55,859 --> 00:17:57,839 Sean Aylmer: decommissioned in 2030, Michael. 353 00:17:58,590 --> 00:18:01,050 Michael Thompson: Now finally, Sean, we've had a bit of a focus 354 00:18:01,109 --> 00:18:04,290 Michael Thompson: on unusual stories to end the show in recent days. 355 00:18:04,290 --> 00:18:07,230 Michael Thompson: We had the Indian food inspector who drained a dam 356 00:18:07,230 --> 00:18:09,388 Michael Thompson: to look for his phone. Then we had the nun 357 00:18:09,388 --> 00:18:12,450 Michael Thompson: from Missouri who was exhumed four years after a burial 358 00:18:12,450 --> 00:18:15,839 Michael Thompson: and was completely intact. What have you got for us today? 359 00:18:16,529 --> 00:18:18,238 Sean Aylmer: Look, I was going to do the one about the 360 00:18:18,300 --> 00:18:20,340 Sean Aylmer: Russian spy whale. 361 00:18:21,090 --> 00:18:21,780 Michael Thompson: Sorry, what? 362 00:18:23,160 --> 00:18:25,770 Sean Aylmer: Well, it's a harness- wearing beluga whale. It turned up 363 00:18:25,770 --> 00:18:30,059 Sean Aylmer: in Norway four years ago. Sparked speculation that it was actually 364 00:18:30,059 --> 00:18:34,289 Sean Aylmer: a spy whale trained by the Russian Navy because it 365 00:18:34,289 --> 00:18:37,859 Sean Aylmer: had something attached to it that suggested it was Russian. 366 00:18:38,580 --> 00:18:41,670 Sean Aylmer: Anyway, it was tagged and it's reappeared off Sweden's coast. 367 00:18:41,670 --> 00:18:42,990 Sean Aylmer: So I was going to tell you about that one. 368 00:18:43,470 --> 00:18:45,030 Michael Thompson: Oh, that would've been fantastic, but. 369 00:18:45,030 --> 00:18:48,509 Sean Aylmer: It would've been. But I think we should be a little bit more business focused. 370 00:18:48,509 --> 00:18:52,408 Sean Aylmer: So today's offering is more business focused and it's actually 371 00:18:52,410 --> 00:18:56,609 Sean Aylmer: the chief executive of Philip Morris International saying the company, 372 00:18:56,609 --> 00:19:00,688 Sean Aylmer: which of course makes Marlboro cigarettes among others, is on 373 00:19:00,690 --> 00:19:05,340 Sean Aylmer: its way to becoming an ESG stock. Now an ESG stock, 374 00:19:05,340 --> 00:19:10,049 Sean Aylmer: environmental, social, and governance. Investors put money into ESG stocks 375 00:19:10,049 --> 00:19:14,490 Sean Aylmer: because they're things that improve the world, energy transformation, for 376 00:19:14,490 --> 00:19:19,198 Sean Aylmer: example. They shy away fervently from things that harm the 377 00:19:19,200 --> 00:19:24,540 Sean Aylmer: world. Companies that make bombs, for example, cigarettes, for example. 378 00:19:25,349 --> 00:19:32,070 Sean Aylmer: Last year, Philip Morris sold 621 billion cigarettes worldwide. Cigarettes 379 00:19:32,070 --> 00:19:35,129 Sean Aylmer: of course, are the leading cause of preventable death globally. 380 00:19:35,550 --> 00:19:40,320 Sean Aylmer: But Philip Morris Morris's boss, Jacek Olczak points to the 381 00:19:40,320 --> 00:19:43,799 Sean Aylmer: fact that because the company now makes less harmful nicotine 382 00:19:43,799 --> 00:19:45,990 Sean Aylmer: alternatives like vapes. 383 00:19:48,449 --> 00:19:48,570 Michael Thompson: Oh, God. 384 00:19:48,900 --> 00:19:53,340 Sean Aylmer: Maybe they're heading down the ESG track. When asked by the Financial 385 00:19:53,340 --> 00:19:56,309 Sean Aylmer: Times, if one day the company might be classified as 386 00:19:56,309 --> 00:19:59,640 Sean Aylmer: an ESG stock because of its push away from cigarettes, 387 00:20:00,059 --> 00:20:03,540 Sean Aylmer: the boss said, " I think so." Even he didn't sound 388 00:20:03,540 --> 00:20:04,438 Sean Aylmer: very convinced, Michael. 389 00:20:04,500 --> 00:20:06,419 Michael Thompson: No, it feels like he might be clutching at straws 390 00:20:06,420 --> 00:20:09,060 Michael Thompson: there a little bit. It's just, I don't see any 391 00:20:09,060 --> 00:20:12,000 Michael Thompson: way that a company like Philip Morris could ever be 392 00:20:12,000 --> 00:20:15,148 Michael Thompson: considered an ESG stock. But hey, points for trying. 393 00:20:15,510 --> 00:20:18,839 Sean Aylmer: Points for trying. Unusual story and a business one. Hey, 394 00:20:19,950 --> 00:20:21,599 Sean Aylmer: look tomorrow I'll go back to the silly stuff. 395 00:20:21,869 --> 00:20:25,168 Michael Thompson: Oh, yeah. I mean, I love the beluga whale, the spy whale. 396 00:20:25,230 --> 00:20:28,560 Sean Aylmer: The great thing about that, so they're not sure what's 397 00:20:28,560 --> 00:20:30,418 Sean Aylmer: going on with this whale. They have tracked it for 398 00:20:30,420 --> 00:20:31,918 Sean Aylmer: the last four years and they don't really think it's 399 00:20:31,920 --> 00:20:36,240 Sean Aylmer: a Russian spy anymore. They think it might be on 400 00:20:36,240 --> 00:20:38,730 Sean Aylmer: heat and looking for a mate because it's been swimming 401 00:20:38,730 --> 00:20:40,979 Sean Aylmer: up in that area. And from what they can tell, 402 00:20:41,010 --> 00:20:42,780 Sean Aylmer: they don't think it's met a mate in about two 403 00:20:42,780 --> 00:20:46,920 Sean Aylmer: years. It's pretty lonely, swimming around without meeting a mate for 404 00:20:46,920 --> 00:20:47,398 Sean Aylmer: two years. 405 00:20:47,609 --> 00:20:49,050 Michael Thompson: You know what, there's a lot of places we can 406 00:20:49,050 --> 00:20:51,359 Michael Thompson: go with this story, Sean. And I don't think it's safe 407 00:20:51,359 --> 00:20:52,710 Michael Thompson: for us to do any of them. 408 00:20:53,070 --> 00:20:53,520 Sean Aylmer: Let's not. 409 00:20:53,790 --> 00:20:56,009 Michael Thompson: Let's just move on. The Daily Interview, Fear and Greed 410 00:20:56,009 --> 00:20:58,559 Michael Thompson: Daily Interview with Tim Fung, co- founder and CEO of 411 00:20:58,559 --> 00:20:59,910 Michael Thompson: Airtasker, up next. 412 00:21:00,150 --> 00:21:03,240 Sean Aylmer: All about people trying to make extra money by using 413 00:21:03,240 --> 00:21:06,600 Sean Aylmer: or by offering themselves on Airtasker and the sorts of 414 00:21:06,600 --> 00:21:09,330 Sean Aylmer: jobs that people want to use Airtasker for. 415 00:21:09,900 --> 00:21:11,908 Michael Thompson: It's coming up next in the Fear and Greed playlist 416 00:21:11,910 --> 00:21:15,330 Michael Thompson: on your podcast platform or at fearandgreed. com. au. Thank 417 00:21:15,330 --> 00:21:15,960 Michael Thompson: you, Sean. 418 00:21:16,138 --> 00:21:16,860 Sean Aylmer: Thank you, Michael. 419 00:21:17,070 --> 00:21:20,369 Michael Thompson: It's Wednesday, the 31st of May 2023. Make sure you're 420 00:21:20,369 --> 00:21:24,060 Michael Thompson: following the podcast. Join us online on LinkedIn, Instagram, Twitter, and 421 00:21:24,060 --> 00:21:26,250 Michael Thompson: Facebook. And stay up to date on all the business 422 00:21:26,250 --> 00:21:30,000 Michael Thompson: news with Alexa and your Amazon Echo smart speaker. Simply say, " 423 00:21:30,000 --> 00:21:32,190 Michael Thompson: Alexa, play the Fear and Greed podcast," to catch the 424 00:21:32,190 --> 00:21:34,620 Michael Thompson: latest episode. You can grab yours now at amazon. com. 425 00:21:35,129 --> 00:21:37,320 Michael Thompson: au. I'm Michael Thompson. And that was Fear and Greed. Have a great day.