1 00:00:03,840 --> 00:00:06,880 Speaker 1: It's Thursday, the sixth of June twenty twenty four. Welcome 2 00:00:06,920 --> 00:00:09,240 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,240 --> 00:00:11,200 Speaker 1: where we give you the top five business stories you 4 00:00:11,240 --> 00:00:13,680 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:13,720 --> 00:00:17,840 Speaker 1: and good morning Sean Aylmer. Good morning, Michael, Sean. Five stories, 6 00:00:17,960 --> 00:00:20,040 Speaker 1: five minutes. Let's get going. Story number one is a 7 00:00:20,120 --> 00:00:23,040 Speaker 1: huge one. The annual pace of economic growth has fallen 8 00:00:23,360 --> 00:00:26,640 Speaker 1: to just one point one percent, the slowest rate in 9 00:00:26,680 --> 00:00:29,200 Speaker 1: more than thirty years outside the pandemic. 10 00:00:29,400 --> 00:00:31,800 Speaker 2: And once again, Michael, on a per capita basis, growth 11 00:00:31,840 --> 00:00:35,519 Speaker 2: went backwards. That's five quarters in a row when that's happened. 12 00:00:35,680 --> 00:00:37,840 Speaker 2: For the March quarter, the economy grew by zero point 13 00:00:37,840 --> 00:00:40,000 Speaker 2: one percent on the back of government spending, a build 14 00:00:40,080 --> 00:00:42,800 Speaker 2: up in invantories, and a somewhat surprising jumping consumption that 15 00:00:42,880 --> 00:00:47,080 Speaker 2: reflects higher spending on necessary household items like electricity and 16 00:00:47,080 --> 00:00:49,400 Speaker 2: rent that type of stuff. The long run average for 17 00:00:49,479 --> 00:00:51,880 Speaker 2: economic growth in Australia is sort of two and three 18 00:00:51,920 --> 00:00:55,360 Speaker 2: quarters three percent thereabouts. We're talking about one point one percent. 19 00:00:55,440 --> 00:00:58,400 Speaker 2: It just demonstrates how weak yesterday's figures were in terms 20 00:00:58,440 --> 00:01:01,320 Speaker 2: of the different parts of the economy. Households are spending 21 00:01:01,400 --> 00:01:04,480 Speaker 2: much more on essentials less on discretionary items. There was 22 00:01:04,520 --> 00:01:07,600 Speaker 2: actually a Taylor Swift F one blimp during the March 23 00:01:07,680 --> 00:01:11,679 Speaker 2: Quarterment spending remains strong, mostly their spending in health and energy. 24 00:01:11,959 --> 00:01:16,040 Speaker 2: Residential investment is still weak. Business investment had been strong. 25 00:01:16,400 --> 00:01:18,800 Speaker 2: It fell sharply during the quarter. There was a build 26 00:01:18,880 --> 00:01:21,840 Speaker 2: up of infantries that actually adds to growth. There's a 27 00:01:21,920 --> 00:01:24,280 Speaker 2: jump in imports as well that takes away from growth. 28 00:01:24,520 --> 00:01:26,919 Speaker 2: The household savings rate fell to less than one percent, 29 00:01:26,920 --> 00:01:30,400 Speaker 2: which is a pre pandemic level treasure. Jim Chalmers said 30 00:01:30,600 --> 00:01:34,160 Speaker 2: the GDP figures this quarter, the Dune quarter are also 31 00:01:34,680 --> 00:01:35,480 Speaker 2: likely to be weak. 32 00:01:36,040 --> 00:01:38,959 Speaker 1: All right, So this week number sean, I imagine, adds 33 00:01:38,959 --> 00:01:41,520 Speaker 1: ammunition to those who are calling for rate cuts sooner 34 00:01:41,640 --> 00:01:43,160 Speaker 1: rather than later. That is, of course up to the 35 00:01:43,160 --> 00:01:46,200 Speaker 1: Reserve Bank. The Governor of the Reserve Bank, Michelle Bullock, 36 00:01:46,319 --> 00:01:48,960 Speaker 1: was before centate estimates yesterday. What did she say? 37 00:01:49,320 --> 00:01:51,800 Speaker 2: Once again, she said the Reserve Bank will raise rates 38 00:01:51,800 --> 00:01:54,280 Speaker 2: if it fears inflation is getting out of control and 39 00:01:54,360 --> 00:01:56,760 Speaker 2: not heading back towards its preferred two to three percent 40 00:01:56,800 --> 00:02:00,240 Speaker 2: target band. When asked whether she'd lift rates ring an 41 00:02:00,240 --> 00:02:03,600 Speaker 2: election campaign. She said the Board would always put inflation 42 00:02:03,800 --> 00:02:05,840 Speaker 2: at the forefront of its decision making and if the 43 00:02:05,920 --> 00:02:08,200 Speaker 2: data says it needs to move on rates, whichever way 44 00:02:08,280 --> 00:02:11,280 Speaker 2: that is, it will ms Bullock also said that she 45 00:02:11,400 --> 00:02:14,520 Speaker 2: preferred quarterly inflation figures to monthly data. Now last week 46 00:02:14,720 --> 00:02:17,560 Speaker 2: April figures show a rise in inflation. She also said 47 00:02:17,560 --> 00:02:19,960 Speaker 2: that the federal governments three hundred dollars energy rebate and 48 00:02:20,000 --> 00:02:23,800 Speaker 2: other state government rebates will broadly be ignored when the 49 00:02:23,919 --> 00:02:28,320 Speaker 2: Reserve banks thinking about inflation and interstrates. Bottom line economy 50 00:02:28,400 --> 00:02:31,000 Speaker 2: still in a narrow path of getting inflation back under 51 00:02:31,000 --> 00:02:33,919 Speaker 2: control without job losses, but there are plenty of uncertainties 52 00:02:33,919 --> 00:02:34,320 Speaker 2: out there. 53 00:02:34,720 --> 00:02:37,640 Speaker 1: Sean story number two. How about this one? Australia's privacy 54 00:02:37,680 --> 00:02:41,480 Speaker 1: watchdog will take legal action against Medibank Private for failing 55 00:02:41,520 --> 00:02:44,560 Speaker 1: to protect the medical details of nine point seven million 56 00:02:44,600 --> 00:02:48,160 Speaker 1: Australians which were accessed by Russian cyber criminals in twenty 57 00:02:48,160 --> 00:02:48,639 Speaker 1: twenty two. 58 00:02:49,560 --> 00:02:52,600 Speaker 2: The FINS and the civil action could theoretically exceed twenty 59 00:02:52,639 --> 00:02:56,639 Speaker 2: one point five trillion dollars in proceedings filed in the 60 00:02:56,639 --> 00:02:59,520 Speaker 2: Federal Court. The Office of the Australian Information Commissioner alleges 61 00:02:59,520 --> 00:03:02,639 Speaker 2: contravenial of the Privacy Act for each of medibanks nine 62 00:03:02,639 --> 00:03:05,720 Speaker 2: point seven million customers. There's a maximum civil penalty of 63 00:03:05,880 --> 00:03:08,680 Speaker 2: two hundred and twenty dollars for each contravention. Hence that 64 00:03:08,800 --> 00:03:12,440 Speaker 2: massive number ain't going to happen. Still interesting, Medibank said 65 00:03:12,520 --> 00:03:15,760 Speaker 2: it's going to defend the proceedings. The Office alleges Medibank 66 00:03:15,800 --> 00:03:18,840 Speaker 2: failed to take reasonable steps to protect personal information it 67 00:03:18,960 --> 00:03:21,080 Speaker 2: held all to given its size, resources in nature and 68 00:03:21,120 --> 00:03:24,400 Speaker 2: volume of the sensitive and personal information it handled, and 69 00:03:24,440 --> 00:03:27,120 Speaker 2: the risk of serious harm for an individual in the case. 70 00:03:27,480 --> 00:03:29,160 Speaker 1: So at number three there could be a shortage of 71 00:03:29,200 --> 00:03:32,600 Speaker 1: eggs sean available on supermarket shelves and coming days and 72 00:03:32,639 --> 00:03:36,160 Speaker 1: weeks after more than six hundred thousand laying hands were 73 00:03:36,280 --> 00:03:39,000 Speaker 1: cold in an effort to limit the spread of avian flu. 74 00:03:39,280 --> 00:03:42,080 Speaker 2: There have now been three cases in Victoria, though fortunately 75 00:03:42,120 --> 00:03:43,960 Speaker 2: the strain of bird flu is different from the one 76 00:03:44,000 --> 00:03:46,240 Speaker 2: spreading wildly in pasts of the US. There are more 77 00:03:46,240 --> 00:03:48,840 Speaker 2: than twenty one million hens in the national egg flock 78 00:03:49,080 --> 00:03:51,880 Speaker 2: and more than one hundred egg farms in Victoria. The 79 00:03:52,000 --> 00:03:54,400 Speaker 2: six hundred thousand will make up about three percent of 80 00:03:54,440 --> 00:03:57,480 Speaker 2: the brood. The impact is already hitting retailers, though industry 81 00:03:57,480 --> 00:04:00,160 Speaker 2: members said customers can shop around and still find eggs. 82 00:04:00,240 --> 00:04:02,320 Speaker 2: Just a couple of interesting facts here. Michael New South 83 00:04:02,320 --> 00:04:04,720 Speaker 2: Wales and Queensland produced about two hundred and sixty six 84 00:04:04,800 --> 00:04:09,320 Speaker 2: million dozen eggs each year, Victoria about eighty five million 85 00:04:09,440 --> 00:04:10,120 Speaker 2: dozen eggs. 86 00:04:10,360 --> 00:04:13,560 Speaker 1: Now sean story number four. US retailers having spent three 87 00:04:13,640 --> 00:04:17,280 Speaker 1: years pushing prices higher and now lowering them in an 88 00:04:17,279 --> 00:04:20,320 Speaker 1: effort to attract price conscious consumers. 89 00:04:19,960 --> 00:04:22,560 Speaker 2: Let's say it happens here. Pharmacy group Walgreens last week 90 00:04:22,640 --> 00:04:25,120 Speaker 2: said it will lower prices on a thousand items. Target 91 00:04:25,160 --> 00:04:28,359 Speaker 2: recently announced price cuts on five thousand food products and 92 00:04:28,360 --> 00:04:31,200 Speaker 2: household goods. A couple of months ago, wal M'd introduced 93 00:04:31,200 --> 00:04:33,880 Speaker 2: a private label seventy percent of products will be less 94 00:04:33,880 --> 00:04:36,360 Speaker 2: than five Bucks like Key is doing the same. This 95 00:04:36,400 --> 00:04:38,840 Speaker 2: is all according to a New York Times report. During 96 00:04:38,839 --> 00:04:41,320 Speaker 2: the reach and March quarter earnings updates, some companies said 97 00:04:41,360 --> 00:04:44,520 Speaker 2: they planned to slow price increases and find other ways 98 00:04:44,680 --> 00:04:47,480 Speaker 2: to make profits. Starbucks and Coca Cola, for example, i've 99 00:04:47,560 --> 00:04:51,240 Speaker 2: reported flat sales volumes. Fast food group Wendy's earlier in 100 00:04:51,279 --> 00:04:54,200 Speaker 2: the year floated the idea of pricing goods differently depending 101 00:04:54,600 --> 00:04:57,719 Speaker 2: on what time the day it was hasn't happened interesting concept. 102 00:04:57,839 --> 00:05:01,000 Speaker 2: Even McDonald's is struggling. It's facing a consumer backlash because 103 00:05:01,000 --> 00:05:03,200 Speaker 2: the average cost of a big Mac has gone from 104 00:05:03,200 --> 00:05:05,600 Speaker 2: four dollars thirty nine five years ago to five dollars 105 00:05:05,640 --> 00:05:06,440 Speaker 2: twenty nine today. 106 00:05:06,880 --> 00:05:09,919 Speaker 1: Last one sean story number five. To Beers is synonymous 107 00:05:09,920 --> 00:05:12,479 Speaker 1: with diamonds, of course, but now wants to become known 108 00:05:12,560 --> 00:05:15,840 Speaker 1: as a retailer competing with the likes of Cartier and Tiffany. 109 00:05:16,400 --> 00:05:18,359 Speaker 2: In an interview with The Financial Times, the head of 110 00:05:18,360 --> 00:05:20,720 Speaker 2: De Beer says he aims to transform the diamond minor 111 00:05:20,800 --> 00:05:24,000 Speaker 2: into a leading luxury retailer. Following its worst year in 112 00:05:24,040 --> 00:05:26,640 Speaker 2: more than two decades, Chief executive Al Cook says the 113 00:05:26,640 --> 00:05:28,760 Speaker 2: future of diamonds is a way beyond mining. To Beers 114 00:05:28,760 --> 00:05:31,479 Speaker 2: suffered from a big slub in diamond sales last year 115 00:05:31,720 --> 00:05:34,960 Speaker 2: high interest rates, inflation, but also plenty of competition from synthetic, 116 00:05:35,040 --> 00:05:39,320 Speaker 2: lab grown gemstones that hit demand. The company reckons that 117 00:05:39,720 --> 00:05:42,839 Speaker 2: four point five billion US dollars of cheaper lab grown 118 00:05:42,920 --> 00:05:47,600 Speaker 2: diamond sales deprived Mind Diamonds of about seven billion dollars 119 00:05:47,600 --> 00:05:50,560 Speaker 2: worth of sales. Debes is going to target India. It's 120 00:05:50,760 --> 00:05:54,480 Speaker 2: now the second largest diamond market. Of course, until a 121 00:05:54,520 --> 00:05:57,080 Speaker 2: week ago to Beers could will have been part of BHP, 122 00:05:57,320 --> 00:05:59,960 Speaker 2: but its owner Anglo American rejected BHP. 123 00:06:00,040 --> 00:06:02,000 Speaker 1: He's all right, there we go the top five business 124 00:06:02,000 --> 00:06:04,680 Speaker 1: stories in five minutes. Thank you Sean, Thank you Michael. 125 00:06:04,839 --> 00:06:07,159 Speaker 1: It is Thursday, the sixth of June twenty twenty four. 126 00:06:07,240 --> 00:06:09,560 Speaker 1: Remember to hit follow on the podcast and five minutes 127 00:06:09,600 --> 00:06:11,520 Speaker 1: isn't it enough. You can find our longer daily show 128 00:06:11,800 --> 00:06:14,719 Speaker 1: called Fear and Greed wherever you listen to podcasts. I'm 129 00:06:14,720 --> 00:06:16,960 Speaker 1: Michael Thompson and that was the fast five business news 130 00:06:16,960 --> 00:06:18,960 Speaker 1: by Fear and Greed. Have a great day.