1
00:00:06,200 --> 00:00:09,600
Speaker 1: Today on Fear and Greed, Federal Treasurer Jim Chalmers says

2
00:00:09,680 --> 00:00:12,719
Speaker 1: changes to the Reserve Bank could start happening today, adding

3
00:00:12,760 --> 00:00:16,400
Speaker 1: an election early next year is unlikely. Melbourne, for one

4
00:00:16,440 --> 00:00:18,680
Speaker 1: of the few times this year, is the strongest auction

5
00:00:18,800 --> 00:00:22,120
Speaker 1: market over the last week and cash isn't going anywhere.

6
00:00:22,200 --> 00:00:25,280
Speaker 1: Plus Rio goes big into lithium and a mega find

7
00:00:25,320 --> 00:00:29,080
Speaker 1: for consulting group McKinsey for helping market opioids. Welcome to

8
00:00:29,120 --> 00:00:31,440
Speaker 1: Fear and Greed, daily business news for people who make

9
00:00:31,480 --> 00:00:34,559
Speaker 1: their own decisions. It is Monday, the sixteenth of December

10
00:00:34,600 --> 00:00:38,040
Speaker 1: twenty twenty four. I'm Michael Thompson and good morning, Sean Aylmer.

11
00:00:38,320 --> 00:00:39,840
Speaker 2: Good morning, Michael, Sean.

12
00:00:39,880 --> 00:00:42,880
Speaker 1: The main story this morning. Federal Treasurer Jim Chalmers says

13
00:00:42,920 --> 00:00:46,560
Speaker 1: that new appointees to the Reserve Bank Interest Rates Setting

14
00:00:46,560 --> 00:00:49,720
Speaker 1: Committee could happen as soon as today, as he highlighted

15
00:00:49,760 --> 00:00:53,000
Speaker 1: the government's economic credentials following last week's drop in the

16
00:00:53,080 --> 00:00:57,360
Speaker 1: unemployment rate to three point nine percent. Surprise drop, Sean

17
00:00:57,760 --> 00:01:01,440
Speaker 1: surprise drop. Jim Chalmers was certainly crowing about it yesterday.

18
00:01:01,440 --> 00:01:04,080
Speaker 1: It was an extraordinary result, really, but he wouldn't be

19
00:01:04,200 --> 00:01:06,920
Speaker 1: drawn about when the Reserve Bank will cut interest rates.

20
00:01:07,000 --> 00:01:11,320
Speaker 1: Of course, a lower unemployment rate does nothing to convince

21
00:01:11,319 --> 00:01:13,400
Speaker 1: the Reserve Bank to cut rates. In fact, it probably

22
00:01:13,400 --> 00:01:16,760
Speaker 1: does the opposite. On the new interest rate Setting Committee,

23
00:01:16,840 --> 00:01:19,840
Speaker 1: he said he had had collaborative discussions with his opposition

24
00:01:19,920 --> 00:01:24,399
Speaker 1: counterpart Angus Taylor yesterday. Mister Taylor wasn't quite so complimentary

25
00:01:24,400 --> 00:01:27,840
Speaker 1: about Dr Chalmers. This, of course, is a result of

26
00:01:27,840 --> 00:01:30,679
Speaker 1: the last sitting day of Parliament pushing through legislation that

27
00:01:30,760 --> 00:01:33,880
Speaker 1: establishes this news interest rate Setting Board for the Reserve Bank.

28
00:01:33,920 --> 00:01:36,839
Speaker 1: There's a second board called the Government's Board, that all

29
00:01:36,959 --> 00:01:40,479
Speaker 1: kicks off next year. Doctor Chalmers also hosed down speculation

30
00:01:40,560 --> 00:01:44,640
Speaker 1: of an election early next year, saying that the government

31
00:01:44,800 --> 00:01:48,160
Speaker 1: is working on a twenty fifth of March budget. Now,

32
00:01:48,200 --> 00:01:51,720
Speaker 1: if the government's in caretaker mode, if it's called an election,

33
00:01:52,080 --> 00:01:54,880
Speaker 1: it's not going to hand down a budget. Doctor Chalmers

34
00:01:54,880 --> 00:01:57,560
Speaker 1: rested suggestions that timing the next election could depend on

35
00:01:57,560 --> 00:01:59,320
Speaker 1: the potential for an interest rate cut in the first

36
00:01:59,320 --> 00:02:00,000
Speaker 1: half of next year.

37
00:02:00,560 --> 00:02:04,320
Speaker 2: Yeah, yeah, yeah, yeah. Every politician worth airssalt is interested

38
00:02:04,360 --> 00:02:05,600
Speaker 2: when interest rates aregain to fall.

39
00:02:06,080 --> 00:02:10,360
Speaker 1: Absolutely. The other big thing that was being discussed yesday,

40
00:02:10,440 --> 00:02:14,920
Speaker 1: Doctor Chalmers wasn't so positive about Opposition leader Peter Dutton's

41
00:02:15,000 --> 00:02:16,679
Speaker 1: nuclear plans, less.

42
00:02:16,480 --> 00:02:19,760
Speaker 2: Positive than he was about the unemployment rate. That is true.

43
00:02:20,080 --> 00:02:23,919
Speaker 2: A brief recap, the Coalition claims its nuclear power plan

44
00:02:24,040 --> 00:02:26,600
Speaker 2: will cost three hundred and thirty one billion dollars over

45
00:02:26,639 --> 00:02:29,200
Speaker 2: the next couple of decades. That's about two hundred and

46
00:02:29,200 --> 00:02:33,119
Speaker 2: sixty three billion dollars less than Labour's renewable plans over

47
00:02:33,120 --> 00:02:35,600
Speaker 2: the next twenty five years. Of course, these are the

48
00:02:35,639 --> 00:02:39,720
Speaker 2: opposition's costings. Opposition leader Peter Dunton released the costings on Friday.

49
00:02:40,000 --> 00:02:43,720
Speaker 2: It's based on the goal of net zero emissions electricity

50
00:02:44,040 --> 00:02:47,840
Speaker 2: by twenty fifty. Under coalition's model, renewable energy will still

51
00:02:47,840 --> 00:02:50,600
Speaker 2: be the dominant source of power by twenty fifty, responsible

52
00:02:50,639 --> 00:02:54,440
Speaker 2: for fifty four percent of generation in the national electricity market,

53
00:02:54,440 --> 00:02:57,079
Speaker 2: but nuclear power would provide about thirty eight percent. Under

54
00:02:57,080 --> 00:02:59,600
Speaker 2: the government's policy, about ninety four percent of generation by

55
00:02:59,639 --> 00:03:02,320
Speaker 2: twenty five would be renewable energy. The rest is coming

56
00:03:02,360 --> 00:03:05,920
Speaker 2: from gas and storage. It's the costings, though, which is

57
00:03:06,000 --> 00:03:10,000
Speaker 2: really driving the debate at the moment, with Jim Chalmers

58
00:03:10,040 --> 00:03:12,639
Speaker 2: saying the only way for the Opposition to achieve its

59
00:03:12,680 --> 00:03:16,399
Speaker 2: costings would be to shrink the economy substantially. He said

60
00:03:16,400 --> 00:03:19,840
Speaker 2: the plan assumes a four trillion dollar hit to economic

61
00:03:19,880 --> 00:03:23,600
Speaker 2: output over the next twenty five years. Basically, he said,

62
00:03:23,600 --> 00:03:26,600
Speaker 2: it's ludicrous to think that the economy will need less

63
00:03:26,639 --> 00:03:28,040
Speaker 2: power in the future.

64
00:03:29,080 --> 00:03:32,480
Speaker 1: John, do you think anyone's listening in terms of politics

65
00:03:32,600 --> 00:03:35,440
Speaker 1: at this so late in the year, with Christmas just

66
00:03:35,480 --> 00:03:38,240
Speaker 1: around the corner, do you think most people on the

67
00:03:38,240 --> 00:03:41,200
Speaker 1: street are just fed up with politics and this kind

68
00:03:41,240 --> 00:03:44,440
Speaker 1: of argie bargie over policy and costings into the future.

69
00:03:44,520 --> 00:03:46,600
Speaker 1: It's just come on, guys, give it a rest, let's

70
00:03:46,600 --> 00:03:47,680
Speaker 1: pick it up again in the new year.

71
00:03:48,280 --> 00:03:51,040
Speaker 2: Yeah. Maybe it's such an important debate. I think it's

72
00:03:51,040 --> 00:03:55,680
Speaker 2: really good that the opposition has a different energy plan

73
00:03:56,000 --> 00:03:59,120
Speaker 2: to the government because you can actually choose between the two,

74
00:03:59,680 --> 00:04:02,600
Speaker 2: and it's I mean, I think the debate is whether

75
00:04:02,600 --> 00:04:04,280
Speaker 2: you want nuclear or not. It's not about how much

76
00:04:04,320 --> 00:04:06,080
Speaker 2: it's going to cost. I think that's the first debate,

77
00:04:06,120 --> 00:04:08,280
Speaker 2: and then we should worry about the costings. But as

78
00:04:08,320 --> 00:04:10,520
Speaker 2: you say, Michael, probably most of us are tide by

79
00:04:10,560 --> 00:04:13,040
Speaker 2: this time. Our last week here at fear and greed,

80
00:04:13,560 --> 00:04:18,240
Speaker 2: at least our last week of full shows. So yeah,

81
00:04:18,240 --> 00:04:19,720
Speaker 2: I'm getting a bit tired of it. Now.

82
00:04:19,960 --> 00:04:23,080
Speaker 1: We've got something quite special coming up over Christmas and

83
00:04:23,480 --> 00:04:26,159
Speaker 1: a couple of weeks. It's just something a little bit different,

84
00:04:26,240 --> 00:04:28,760
Speaker 1: something a little bit fun, but something that is really

85
00:04:29,320 --> 00:04:32,360
Speaker 1: must listen podcasting.

86
00:04:31,680 --> 00:04:33,599
Speaker 2: Ah for summer must listen.

87
00:04:34,200 --> 00:04:37,560
Speaker 1: Got not over selling it here, am I sean? No?

88
00:04:38,600 --> 00:04:39,839
Speaker 2: No, possible, not at all.

89
00:04:40,080 --> 00:04:42,719
Speaker 1: All Right, let's talk property. Things are winding back.

90
00:04:42,839 --> 00:04:45,120
Speaker 2: You're not going to tell us what it is, No,

91
00:04:45,760 --> 00:04:47,480
Speaker 2: I'm teasing, but.

92
00:04:47,440 --> 00:04:50,720
Speaker 1: I'll give you a clue. There is a lot of

93
00:04:51,320 --> 00:04:55,280
Speaker 1: really exciting stuff. If you are interested in investing, if

94
00:04:55,320 --> 00:04:58,400
Speaker 1: you are interested in property, if you are interested in

95
00:04:58,680 --> 00:05:02,120
Speaker 1: markets and companies, getting some ideas and some tips on

96
00:05:02,480 --> 00:05:04,360
Speaker 1: everything that you might need to be looking for at

97
00:05:04,360 --> 00:05:07,080
Speaker 1: twenty twenty five, then do not miss a moment of

98
00:05:07,120 --> 00:05:08,680
Speaker 1: fear and greed over the next few weeks.

99
00:05:08,839 --> 00:05:11,760
Speaker 2: And the best way to not miss it is follow us.

100
00:05:12,120 --> 00:05:16,440
Speaker 2: Whatever your podcast provider is. Hit follow. You're going to

101
00:05:16,520 --> 00:05:19,760
Speaker 2: get every show, yeah, well said, sometimes there's two shows

102
00:05:19,760 --> 00:05:20,040
Speaker 2: a day.

103
00:05:20,360 --> 00:05:25,320
Speaker 1: Oh yeah, yeah. Anyway, you sound so excited about this, John,

104
00:05:25,400 --> 00:05:26,680
Speaker 1: It is going to be great, So make sure you

105
00:05:26,680 --> 00:05:29,800
Speaker 1: do hit follow. Let's talk property. Things are winding back

106
00:05:29,839 --> 00:05:32,400
Speaker 1: for the summer break in the auction market, though, John,

107
00:05:32,400 --> 00:05:35,599
Speaker 1: there were still more than two thousand homes up for

108
00:05:35,680 --> 00:05:39,039
Speaker 1: sale last week, and I think that the kind of

109
00:05:39,040 --> 00:05:41,800
Speaker 1: standout feature for me was that it's a reversal for

110
00:05:41,960 --> 00:05:44,480
Speaker 1: most of the most of the year, because Melbourne is

111
00:05:44,520 --> 00:05:45,919
Speaker 1: now looking stronger than Sydney.

112
00:05:46,480 --> 00:05:50,840
Speaker 2: Yes, in fact, just this based on just this week's

113
00:05:51,040 --> 00:05:54,839
Speaker 2: auction preliminary clearance rate, Melbourne was better than any other

114
00:05:54,880 --> 00:05:59,000
Speaker 2: city in the country. I don't think from memory, I

115
00:05:59,040 --> 00:06:01,880
Speaker 2: don't think that has happened. So, you know, for Melbourne,

116
00:06:01,920 --> 00:06:04,800
Speaker 2: people leaving the best to last, Adelaide, to town that

117
00:06:04,839 --> 00:06:07,320
Speaker 2: seems to always have a high clearance rate sort of

118
00:06:07,400 --> 00:06:10,919
Speaker 2: high seventies, sixty three percent last week, below Melbourne sixty

119
00:06:10,960 --> 00:06:13,680
Speaker 2: nine percent world on Melbourne, that's where I reckon. Sidney

120
00:06:13,760 --> 00:06:16,040
Speaker 2: was also sixty three percent. As we said last week,

121
00:06:16,120 --> 00:06:19,279
Speaker 2: the market is ending the year with a whimper, but

122
00:06:19,360 --> 00:06:21,640
Speaker 2: still prices have risen five and a half percent over

123
00:06:21,680 --> 00:06:25,080
Speaker 2: twenty twenty four nationally according to Core Logic. It really

124
00:06:25,080 --> 00:06:28,520
Speaker 2: does show that the housing market is more was based

125
00:06:28,560 --> 00:06:31,839
Speaker 2: on more than just interest rates and what's happening there.

126
00:06:32,320 --> 00:06:34,680
Speaker 2: We've got higher interest rates, but we have five and

127
00:06:34,760 --> 00:06:37,719
Speaker 2: a half percent growth in house prices now in the

128
00:06:37,760 --> 00:06:40,240
Speaker 2: last two months. Mostly that's been about a lack of supply.

129
00:06:40,640 --> 00:06:43,800
Speaker 2: Also population growth. You put those two together, it's kept

130
00:06:43,880 --> 00:06:47,520
Speaker 2: pressure on prices all year. Been a fascinating year in

131
00:06:47,600 --> 00:06:49,400
Speaker 2: the auction market and the housing market.

132
00:06:49,640 --> 00:06:52,000
Speaker 1: Yeah, it certainly has been. Just tell us quickly, Sean

133
00:06:52,000 --> 00:06:54,080
Speaker 1: before we go to a break about the interview that

134
00:06:54,080 --> 00:06:55,880
Speaker 1: you have coming up after the show. You're speaking with

135
00:06:56,000 --> 00:06:57,479
Speaker 1: Libby Newman from Vanguard.

136
00:06:57,880 --> 00:07:00,279
Speaker 2: We talked to Libby all about the value of a

137
00:07:00,320 --> 00:07:03,240
Speaker 2: financial advisor, and everyone knows that fear and greed. We

138
00:07:03,320 --> 00:07:06,800
Speaker 2: are big fans of financial advisors. Always take advice if

139
00:07:06,839 --> 00:07:10,240
Speaker 2: you can before making investment decisions. I ask some of

140
00:07:10,280 --> 00:07:13,880
Speaker 2: the myths around advisors whether they're worth it, you know,

141
00:07:13,920 --> 00:07:16,120
Speaker 2: they're trying to sell me something, all that sort of stuff.

142
00:07:16,360 --> 00:07:19,160
Speaker 2: So it's a really interesting chat with Libby who takes

143
00:07:19,400 --> 00:07:23,240
Speaker 2: those myths, hurdles, challenges head on.

144
00:07:23,760 --> 00:07:26,080
Speaker 1: Yeah, it is a great conversation. It is coming up

145
00:07:26,160 --> 00:07:28,560
Speaker 1: after the show. We still have plenty to get through, Sean.

146
00:07:28,640 --> 00:07:31,440
Speaker 1: We're talking lithium, We're talking about cash. Why cash is

147
00:07:31,480 --> 00:07:34,920
Speaker 1: still king or at very least a senior royal. Still

148
00:07:35,200 --> 00:07:37,680
Speaker 1: we've got a bumper edition for you Monday. We'll be

149
00:07:37,680 --> 00:07:39,119
Speaker 1: back in a moment with the rest of the day's

150
00:07:39,120 --> 00:07:49,240
Speaker 1: business news. Sean cash isn't going anywhere, with the Reserve

151
00:07:49,320 --> 00:07:53,360
Speaker 1: Bank saying it is committed to lowering merchant card payment

152
00:07:53,440 --> 00:07:56,520
Speaker 1: costs and ensuring cash is a viable means of payment

153
00:07:56,560 --> 00:07:57,680
Speaker 1: for shoppers and businesses.

154
00:07:58,040 --> 00:08:00,600
Speaker 2: I mean, I think debit cards are king now. Maybe

155
00:08:00,640 --> 00:08:03,800
Speaker 2: this is like a prince once removed. The thing is

156
00:08:04,480 --> 00:08:06,680
Speaker 2: like those princes, once removed, they're always going to be

157
00:08:06,760 --> 00:08:10,040
Speaker 2: hanging around. And that's the point. Last week, Reserve Banker

158
00:08:10,120 --> 00:08:15,080
Speaker 2: System Governor Financial System Brad Jones says Australia's payments system

159
00:08:15,600 --> 00:08:18,680
Speaker 2: systems are world class, but a concerned effort will be

160
00:08:18,720 --> 00:08:20,960
Speaker 2: needed to keep it that way. He said cash remains

161
00:08:20,960 --> 00:08:23,720
Speaker 2: an important means of payment for many people in the community,

162
00:08:24,080 --> 00:08:28,440
Speaker 2: including more vulnerable members of society. Mister Jones said it

163
00:08:28,520 --> 00:08:31,680
Speaker 2: remains an important store of value, particularly during periods of

164
00:08:31,760 --> 00:08:35,920
Speaker 2: economic uncertainty, and aids the resilience of the overall payments system.

165
00:08:36,160 --> 00:08:39,240
Speaker 2: That's a really important thing about cash. If people don't

166
00:08:39,240 --> 00:08:41,640
Speaker 2: have debit cards and credit cards, you still can have cash.

167
00:08:41,640 --> 00:08:43,640
Speaker 2: So the actual payment system is much better when you've

168
00:08:43,679 --> 00:08:45,920
Speaker 2: got all different parts of it. For those reasons, the

169
00:08:45,960 --> 00:08:49,920
Speaker 2: Government Reserve Bank remained committed to supporting access to cash.

170
00:08:50,200 --> 00:08:52,640
Speaker 2: A big issue with cash at the moment is actually

171
00:08:52,640 --> 00:08:56,120
Speaker 2: getting it around the country. On Friday, the competition watchdog

172
00:08:56,320 --> 00:08:59,640
Speaker 2: the HBC issued a draft determination to grant the Australian

173
00:08:59,640 --> 00:09:03,800
Speaker 2: Banking Association, major banks, major retailers and super markets, Ossie

174
00:09:03,840 --> 00:09:08,720
Speaker 2: Post and other industry participants basically the right to collaborate

175
00:09:09,280 --> 00:09:12,640
Speaker 2: to ensure the future continuity of cash in transit services.

176
00:09:12,679 --> 00:09:15,320
Speaker 2: The Hill see, it is all about making sure there's

177
00:09:15,400 --> 00:09:17,880
Speaker 2: enough competition in the market. It's always picking people for

178
00:09:17,920 --> 00:09:20,720
Speaker 2: not being competitive. Quite the opposite of this case says

179
00:09:20,720 --> 00:09:22,600
Speaker 2: this is such a critical issue. You guys can all

180
00:09:22,600 --> 00:09:23,439
Speaker 2: work together.

181
00:09:24,040 --> 00:09:28,200
Speaker 1: Now, Sean. Rio Tinto will spend nearly four billion dollars

182
00:09:28,240 --> 00:09:32,079
Speaker 1: to expand its Ringcon Ringcon. I'm assuming it's ring Coon.

183
00:09:32,120 --> 00:09:36,440
Speaker 1: I'm not very far with Argentinian mind names. It is

184
00:09:36,480 --> 00:09:40,760
Speaker 1: the big lithium project for Rio in Argentina and it's

185
00:09:40,800 --> 00:09:44,000
Speaker 1: really highlighting its faith in the commodity that is so

186
00:09:44,160 --> 00:09:45,640
Speaker 1: vital for batteries.

187
00:09:45,960 --> 00:09:48,560
Speaker 2: Yeah, fascinating what Rio is doing. The Board's approved spending

188
00:09:48,559 --> 00:09:50,959
Speaker 2: two and a half billion US. That's about it's almost

189
00:09:50,960 --> 00:09:53,760
Speaker 2: four billion Aussie to expand the project. It comes after

190
00:09:53,880 --> 00:09:57,920
Speaker 2: Rio closes in on arcadium lithium. That was a six

191
00:09:57,960 --> 00:10:00,520
Speaker 2: point seven billion dollar acquisition that's going to through the

192
00:10:01,840 --> 00:10:04,520
Speaker 2: processes and hurdles. At the moment, the mining giant wants

193
00:10:04,559 --> 00:10:08,199
Speaker 2: to become a world leadium leading lithium producer, and it's

194
00:10:08,240 --> 00:10:11,880
Speaker 2: investing in assets at a time when lithium prices are

195
00:10:11,960 --> 00:10:15,160
Speaker 2: really low. If you're big enough, not a bad idea

196
00:10:15,200 --> 00:10:18,560
Speaker 2: to do that, Rio said. Argentina's economic reforms provide a

197
00:10:18,600 --> 00:10:22,360
Speaker 2: favorable environment for investment, offering benefits such as lower tax rates,

198
00:10:22,360 --> 00:10:28,119
Speaker 2: accelerated depreciation, and regulatory stability. If successful taking over arcadium,

199
00:10:28,559 --> 00:10:32,560
Speaker 2: it means Rio will have three lithium Brian supersites in Argentina.

200
00:10:32,960 --> 00:10:35,440
Speaker 2: It also wants to build projects in South America and

201
00:10:35,679 --> 00:10:39,800
Speaker 2: Canada that it will pick up from arcadium. So what Rio,

202
00:10:40,000 --> 00:10:43,000
Speaker 2: of course huge in iron ore in this country at

203
00:10:43,080 --> 00:10:46,559
Speaker 2: least in copper as well, wants to push into lithium

204
00:10:47,600 --> 00:10:48,080
Speaker 2: just quickly.

205
00:10:48,120 --> 00:10:50,160
Speaker 1: Local markets, where did we finish up? Last week?

206
00:10:50,480 --> 00:10:52,680
Speaker 2: The local share market filled a four week low on

207
00:10:52,800 --> 00:10:55,640
Speaker 2: Friday morning after a week leading from Wall Street. It

208
00:10:55,720 --> 00:10:57,840
Speaker 2: made up some ground and ended up down about half

209
00:10:57,840 --> 00:11:01,200
Speaker 2: a percent to eight to ninety six points. For the week,

210
00:11:01,280 --> 00:11:03,720
Speaker 2: the market was down a couple of percent. The big

211
00:11:03,760 --> 00:11:07,400
Speaker 2: miners led the market lower. On Friday. The banks were mixed.

212
00:11:07,559 --> 00:11:10,960
Speaker 2: Energy index outperformed a couple just worth mentioning in Westpac

213
00:11:11,000 --> 00:11:13,480
Speaker 2: held its annual general meeting, the last route gooing CEO

214
00:11:13,600 --> 00:11:16,160
Speaker 2: Peter King. At that meeting, mister King said the bank

215
00:11:16,200 --> 00:11:18,720
Speaker 2: is well positioned and knows that more needs to be

216
00:11:18,800 --> 00:11:22,080
Speaker 2: done to tackle climate change. Of course, one of the

217
00:11:22,080 --> 00:11:27,960
Speaker 2: big shareholders in westpaink Ethical Australian Ethical oh micae love forgotten.

218
00:11:27,640 --> 00:11:29,400
Speaker 1: The name Australian Ethical.

219
00:11:29,600 --> 00:11:32,120
Speaker 2: Yeah, thank you, I didn't forget it Australian Ethical. It

220
00:11:32,200 --> 00:11:34,920
Speaker 2: had put in a protest forte at the AGM. Also,

221
00:11:35,000 --> 00:11:37,560
Speaker 2: SOAUTH thirty two fell more than a percent despite receiving

222
00:11:37,559 --> 00:11:40,360
Speaker 2: the backing of Western Australia's Environment Minister to extend the

223
00:11:40,400 --> 00:11:42,920
Speaker 2: life of its Warsley illuminant project.

224
00:11:43,520 --> 00:11:46,840
Speaker 1: We need to talk about another story from markets on Friday. Sean,

225
00:11:47,160 --> 00:11:50,679
Speaker 1: the biggest IPO on the ASX this year, had really

226
00:11:50,760 --> 00:11:55,520
Speaker 1: rather an inauspicious opening, didn't it. With shares down ten

227
00:11:55,559 --> 00:11:58,199
Speaker 1: percent on Friday, it's first day of trading.

228
00:11:58,640 --> 00:12:02,320
Speaker 2: It's a property company called did Co Infrastructure, valued at

229
00:12:02,360 --> 00:12:04,960
Speaker 2: two billion dollars, biggest to IPO in more than six years,

230
00:12:05,040 --> 00:12:08,600
Speaker 2: which just goes to show how small the market is

231
00:12:08,640 --> 00:12:12,000
Speaker 2: of the mark for IPAs is in Australia. It owns

232
00:12:12,160 --> 00:12:14,560
Speaker 2: three data centers that once another twelve in Australia and

233
00:12:14,559 --> 00:12:17,800
Speaker 2: North America. Investors thought the offer price of five dollars

234
00:12:17,800 --> 00:12:20,960
Speaker 2: to share was just a bit rich, hence the sell off.

235
00:12:21,760 --> 00:12:24,360
Speaker 2: It is the biggest IPA. Of course. The biggest transaction

236
00:12:24,559 --> 00:12:27,200
Speaker 2: was Blackstone buying air Trunk earlier this year for twenty

237
00:12:27,200 --> 00:12:29,319
Speaker 2: four billion dollars, but it wasn't on market. It was

238
00:12:29,360 --> 00:12:32,920
Speaker 2: a private deal anyway. The digit COO Infrastructure not a

239
00:12:32,920 --> 00:12:34,679
Speaker 2: good day one no.

240
00:12:34,880 --> 00:12:39,000
Speaker 1: Speaking of deals, though, Sean financial services group Insignia Financial

241
00:12:39,080 --> 00:12:42,080
Speaker 1: on Friday received a two point seven billion dollar takeover

242
00:12:42,120 --> 00:12:44,280
Speaker 1: bid from private equity group Baning Capital.

243
00:12:44,720 --> 00:12:46,959
Speaker 2: That center It's share price up eight percent. Used to

244
00:12:47,000 --> 00:12:50,720
Speaker 2: be known as IAF Holdings. Insignia did has a bunch

245
00:12:50,760 --> 00:12:53,280
Speaker 2: of financial planners, office super innovation products, a bat two

246
00:12:53,320 --> 00:12:55,640
Speaker 2: hundred and eighty eight billion dollars worth of funds and management.

247
00:12:55,679 --> 00:12:58,920
Speaker 2: It's a decent company, at least in terms of size,

248
00:12:59,000 --> 00:13:01,160
Speaker 2: The bid is a thirty percent premium to the closing

249
00:13:01,240 --> 00:13:04,560
Speaker 2: price on Wednesday. That was ahead of media reports of

250
00:13:04,600 --> 00:13:04,960
Speaker 2: the bid.

251
00:13:05,920 --> 00:13:10,400
Speaker 1: Sean I mentioned before the break about AMP getting into bitcoin,

252
00:13:10,679 --> 00:13:14,280
Speaker 1: and they've invested twenty seven million dollars in bitcoin. The

253
00:13:14,360 --> 00:13:17,560
Speaker 1: first time that a major superannuation fund has purchased the

254
00:13:17,600 --> 00:13:18,400
Speaker 1: asset class.

255
00:13:19,120 --> 00:13:21,439
Speaker 2: Really interesting. It isn't a huge portion of the group's

256
00:13:21,480 --> 00:13:25,160
Speaker 2: fifty seven billion dollars in funds under management, but it

257
00:13:25,240 --> 00:13:27,520
Speaker 2: was done earlier in the year. It's been lucrative. The

258
00:13:27,520 --> 00:13:30,600
Speaker 2: purchase occurred when the cryptocurrency was around sixty five thousand

259
00:13:30,640 --> 00:13:34,120
Speaker 2: US dollars a unit. Today it's trading over one hundred

260
00:13:34,120 --> 00:13:37,839
Speaker 2: thousand US dollars a unit. IMP chief investment Officer NH.

261
00:13:37,840 --> 00:13:40,520
Speaker 2: Shelley is quoted in the fin Review as saying it's

262
00:13:40,559 --> 00:13:45,880
Speaker 2: part of the group's diversification strategy. Some small SMSF hold cryptocurrencies,

263
00:13:46,200 --> 00:13:48,960
Speaker 2: but not the big funds. Thus far, no other major

264
00:13:49,120 --> 00:13:51,120
Speaker 2: supergroups seems to be coming out and saying yep, we're

265
00:13:51,120 --> 00:13:55,280
Speaker 2: going to enter that market. Interesting though that AMP has.

266
00:13:54,920 --> 00:13:57,920
Speaker 1: Now turning to international news and a big legal story

267
00:13:58,120 --> 00:14:00,600
Speaker 1: out of the US. This is fascinating and going on

268
00:14:00,679 --> 00:14:04,160
Speaker 1: for some time now. A consulting giant, McKinsey will pay

269
00:14:04,280 --> 00:14:07,480
Speaker 1: six hundred and fifty million US dollars. That's what about

270
00:14:07,520 --> 00:14:12,480
Speaker 1: a billion bossie dollars to end a criminal investigation by

271
00:14:12,520 --> 00:14:15,640
Speaker 1: the US Justice Department into the company's role in bolstering

272
00:14:15,720 --> 00:14:17,480
Speaker 1: sales of addictive pain pills.

273
00:14:17,880 --> 00:14:21,560
Speaker 2: In what officials described as a landmark case, US attorneys

274
00:14:21,560 --> 00:14:25,760
Speaker 2: in Massachusetts and Virginia fold charges of conspiracy to misbrand

275
00:14:26,160 --> 00:14:29,880
Speaker 2: a drug and obstruction. It comes from McKinsey's work advising

276
00:14:29,920 --> 00:14:33,640
Speaker 2: Perdue Pharma on how to turbo charge sales or the

277
00:14:33,640 --> 00:14:38,760
Speaker 2: blockbuster opioid Oxyconton. Officials said. State and federal officials alleged

278
00:14:38,760 --> 00:14:42,040
Speaker 2: Purdue helped kickstart the nation's opioid crisis in the late

279
00:14:42,080 --> 00:14:45,560
Speaker 2: nineteen nineties two thousands by aggressively marketing the drug deed

280
00:14:45,600 --> 00:14:49,440
Speaker 2: doctors while downplaying its diction risk. It marks the first

281
00:14:49,480 --> 00:14:53,920
Speaker 2: time a management consultant company has faced criminal charges related

282
00:14:53,920 --> 00:14:56,720
Speaker 2: to work with the opioid industry. According to a report

283
00:14:56,840 --> 00:14:59,880
Speaker 2: in The Washington Post, the agreement adds to more than

284
00:15:00,120 --> 00:15:03,800
Speaker 2: nine hundred and ninety eight million US dollars that McKinzie

285
00:15:03,880 --> 00:15:06,280
Speaker 2: has already agreed to pay to set a lawsites from states,

286
00:15:06,360 --> 00:15:10,440
Speaker 2: local governments, school districts, health insurers, and benefit plans. In

287
00:15:10,480 --> 00:15:14,800
Speaker 2: a statement, McKinsey said, somewhat an understatement, I would say

288
00:15:15,080 --> 00:15:17,280
Speaker 2: it should never have worked with Purdue. Yeah.

289
00:15:17,440 --> 00:15:22,160
Speaker 1: Maybe Now finally, Sean, I love this story. Bloomberg has

290
00:15:22,200 --> 00:15:25,400
Speaker 1: put together its annual edition of the Richest Families in

291
00:15:25,440 --> 00:15:28,640
Speaker 1: the World, and unfortunately the Aylmers and the Thompsons were

292
00:15:28,640 --> 00:15:31,200
Speaker 1: not on the list, Sean, but back at number one

293
00:15:31,320 --> 00:15:34,440
Speaker 1: after an eighty percent rally in the price of retail

294
00:15:34,480 --> 00:15:37,000
Speaker 1: giant Walmart this year is the Walton family.

295
00:15:37,720 --> 00:15:40,600
Speaker 2: Sixty two years after the first Walmart was opened, the

296
00:15:40,640 --> 00:15:44,040
Speaker 2: family is now worth four hundred and thirty two point

297
00:15:44,080 --> 00:15:47,960
Speaker 2: four billion US dollars now. Sam Walton died in nineteen

298
00:15:48,040 --> 00:15:52,000
Speaker 2: ninety two. He divided his fortune among his children to

299
00:15:52,120 --> 00:15:55,800
Speaker 2: ensure that family control was maintained and the wealth would

300
00:15:55,840 --> 00:15:58,240
Speaker 2: keep growing. And Walmart has had a great year you

301
00:15:58,360 --> 00:16:01,160
Speaker 2: mentioned as up eighty percent. What it's done. It owns

302
00:16:01,200 --> 00:16:03,560
Speaker 2: a huge audience, lots of people go and shop at Walmart,

303
00:16:03,600 --> 00:16:06,520
Speaker 2: and sectually being able to find new revenue streams for

304
00:16:06,720 --> 00:16:11,080
Speaker 2: that audience. A reinvention of the world's biggest retailer and

305
00:16:11,120 --> 00:16:13,160
Speaker 2: its share price has gone through the roof. Hence the

306
00:16:13,240 --> 00:16:15,360
Speaker 2: Waltons are number one.

307
00:16:15,560 --> 00:16:17,880
Speaker 1: It's interesting, isn't it that they've just never been able

308
00:16:17,920 --> 00:16:20,760
Speaker 1: to kind of crack into Australia. And we've talked in

309
00:16:20,800 --> 00:16:22,760
Speaker 1: the past. A couple of years ago we spoke to

310
00:16:23,480 --> 00:16:28,680
Speaker 1: an expert, basically a retail expert who had studied the

311
00:16:28,920 --> 00:16:33,560
Speaker 1: Walnut story and efforts previously to kind of feel out

312
00:16:33,640 --> 00:16:37,360
Speaker 1: other markets like Australia and just in the end couldn't

313
00:16:37,400 --> 00:16:41,720
Speaker 1: just doesn't work, but clearly clearly a success in the US.

314
00:16:42,160 --> 00:16:45,960
Speaker 2: Yeah, yeah, amazing. Number two is last year's number one,

315
00:16:46,000 --> 00:16:48,920
Speaker 2: the al Nayan family from Abu Dhabi. The family has

316
00:16:48,920 --> 00:16:52,720
Speaker 2: presided over the oil rich emirate the three generations. Sheik

317
00:16:52,920 --> 00:16:57,560
Speaker 2: Muhammad bin Zayed al Layan is the country's president. Number three.

318
00:16:57,880 --> 00:17:03,280
Speaker 2: The Alfhani family from Qatar oil Number four the Jmez family,

319
00:17:03,800 --> 00:17:07,399
Speaker 2: the French plan famous for luxury goods. I had no

320
00:17:07,480 --> 00:17:10,400
Speaker 2: idea they were that rich. There you go. Randing out

321
00:17:10,440 --> 00:17:14,200
Speaker 2: the top five are the Kosh family, four brothers who

322
00:17:14,240 --> 00:17:17,800
Speaker 2: inherited their father's oil firm. Now they own all sorts

323
00:17:17,800 --> 00:17:20,480
Speaker 2: of things, but very very involved in politics. The Kosh

324
00:17:20,520 --> 00:17:21,399
Speaker 2: family in the US.

325
00:17:21,720 --> 00:17:24,640
Speaker 1: Yeah, great story. Finally to wrap things up, Sean, much

326
00:17:24,640 --> 00:17:26,280
Speaker 1: going on in international markets.

327
00:17:26,440 --> 00:17:28,119
Speaker 2: It's a big week this week in the US. The

328
00:17:28,200 --> 00:17:31,960
Speaker 2: Federal Reserve is expected to cut interest rates again. Brent

329
00:17:32,040 --> 00:17:34,480
Speaker 2: krude prices were higher over the weekend, Gold was a

330
00:17:34,520 --> 00:17:36,640
Speaker 2: bit lower. The Ausie dollars buying sixty three point four

331
00:17:36,760 --> 00:17:39,399
Speaker 2: US cents, and one bitcoin is fetching one hundred and

332
00:17:39,400 --> 00:17:42,040
Speaker 2: two thousand US d All. Right.

333
00:17:42,320 --> 00:17:44,760
Speaker 1: Up next, Sean is Fear and Greed the week Ahead,

334
00:17:44,760 --> 00:17:49,959
Speaker 1: featuring our resident economist Stephen Kocoulis, who was very excited,

335
00:17:50,000 --> 00:17:52,040
Speaker 1: and we see about everything that happened last week.

336
00:17:52,440 --> 00:17:54,120
Speaker 2: Yeah, I mean, there's not a lot going on this

337
00:17:54,200 --> 00:17:56,800
Speaker 2: week in the economy, but we have a i mean

338
00:17:56,880 --> 00:17:59,159
Speaker 2: just a great chat with Stephen about where we end

339
00:17:59,440 --> 00:18:03,240
Speaker 2: the year, particularly after last week's labor force figures and

340
00:18:03,320 --> 00:18:05,680
Speaker 2: in recent weeks we've had inflation figures with an economic

341
00:18:05,720 --> 00:18:08,879
Speaker 2: growth figures. So it's fascinating to listen to Stephen to

342
00:18:08,920 --> 00:18:11,199
Speaker 2: give us his view on where we are as we

343
00:18:11,240 --> 00:18:12,320
Speaker 2: get into twenty twenty five.

344
00:18:12,600 --> 00:18:16,600
Speaker 1: Yeah, it's coming up next, followed by the Daily Interview

345
00:18:16,600 --> 00:18:19,240
Speaker 1: Fear and Great Daily Interview with Libby Newman from Vanguard.

346
00:18:19,320 --> 00:18:21,920
Speaker 1: Vanguard a great supporters of Fear and Greed, so plenty

347
00:18:21,960 --> 00:18:24,159
Speaker 1: good listening in the Fear and Greed playlist on your

348
00:18:24,160 --> 00:18:27,440
Speaker 1: podcast platform or at Fearangreed dot com dot au.

349
00:18:27,880 --> 00:18:29,919
Speaker 2: Thank you very much, Sean, Thank you, Michael.

350
00:18:30,080 --> 00:18:32,640
Speaker 1: It is Monday, the sixteenth of December twenty twenty four.

351
00:18:32,760 --> 00:18:35,400
Speaker 1: Make sure you're following the podcast that is most important

352
00:18:35,720 --> 00:18:38,840
Speaker 1: and join us online as well on LinkedIn, Instagram, x

353
00:18:38,960 --> 00:18:41,440
Speaker 1: TikTok and Facebook. I'm Michael Thompson and that was Fear

354
00:18:41,440 --> 00:18:45,120
Speaker 1: and Greed. Have a great day.