1 00:00:03,840 --> 00:00:06,920 Speaker 1: It's Friday, the twenty seventh of September twenty twenty four. 2 00:00:07,080 --> 00:00:09,800 Speaker 1: Welcome to the Fast five Business News by Fear and Greed, 3 00:00:09,800 --> 00:00:11,520 Speaker 1: where we give you the top five business stories you 4 00:00:11,560 --> 00:00:13,960 Speaker 1: need to know. When it's five minutes, I'm Michael Thompson 5 00:00:13,960 --> 00:00:15,320 Speaker 1: and good morning, Sean Aylmer. 6 00:00:15,600 --> 00:00:17,480 Speaker 2: Good morning, Michael, Sean. 7 00:00:17,560 --> 00:00:20,520 Speaker 1: Five stories, five minutes. Let's go. Story number one. Prime 8 00:00:20,520 --> 00:00:24,200 Speaker 1: Minister Anthony Albernezi was yesterday fighting hard to deflect the 9 00:00:24,280 --> 00:00:27,800 Speaker 1: debate about changes to negative gearing or capital gains tax, 10 00:00:28,120 --> 00:00:31,600 Speaker 1: after it emerged that the government had requested modeling from Treasury. 11 00:00:32,120 --> 00:00:34,919 Speaker 2: Mister Albertezi said he wasn't sure who'd made the request 12 00:00:34,960 --> 00:00:37,120 Speaker 2: and he has no plans to make changes, though, as 13 00:00:37,200 --> 00:00:39,760 Speaker 2: analysts pointed out, his words were similar to those years 14 00:00:39,760 --> 00:00:42,919 Speaker 2: twelve months ago about Stage three tax cuts. Back then, 15 00:00:43,000 --> 00:00:46,040 Speaker 2: he promised no changes to the tax cuts, but ultimately 16 00:00:46,040 --> 00:00:49,199 Speaker 2: the government did alter how they worked. Negative gearing, as 17 00:00:49,200 --> 00:00:52,519 Speaker 2: it pertains to housing, allows property investors to deduct losses 18 00:00:52,520 --> 00:00:55,560 Speaker 2: from running their rental properties against their personal income. When 19 00:00:55,560 --> 00:00:58,560 Speaker 2: they sell the property, they get a capital gains tax discount. Now. 20 00:00:58,560 --> 00:01:01,600 Speaker 2: The story was in nine newspapers and Wednesday's running really 21 00:01:01,640 --> 00:01:04,680 Speaker 2: really hard. Opposition leader Peter Dunn gave what he called 22 00:01:04,680 --> 00:01:08,080 Speaker 2: an absolute guarantee not to change negative gearing. He said 23 00:01:08,080 --> 00:01:11,360 Speaker 2: it doesn't pass the pub test. Green's housing spokesman Max 24 00:01:11,520 --> 00:01:14,640 Speaker 2: Chandler maysa repeated calls for the Labor government to negotiate 25 00:01:14,680 --> 00:01:18,520 Speaker 2: it with his party over negative gearing. We're going to 26 00:01:18,560 --> 00:01:20,280 Speaker 2: hear a lot about this one in the lead up 27 00:01:20,280 --> 00:01:23,000 Speaker 2: to the election. Well, it might be good policy. It 28 00:01:23,120 --> 00:01:26,520 Speaker 2: is political dynamite because two point three million Austonian's own 29 00:01:26,520 --> 00:01:29,360 Speaker 2: investment home and forty eight billion dollars in rental deductions 30 00:01:29,400 --> 00:01:30,560 Speaker 2: are claimed every year. 31 00:01:31,000 --> 00:01:32,479 Speaker 1: That is a lot of money. Speaking of a lot 32 00:01:32,480 --> 00:01:34,959 Speaker 1: of money show on. The federal government is also under 33 00:01:35,000 --> 00:01:39,119 Speaker 1: pressure to extend billions of dollars in energy subsidies into 34 00:01:39,160 --> 00:01:41,800 Speaker 1: next year to prevent a surge in costs for consumers. 35 00:01:42,319 --> 00:01:45,360 Speaker 2: Treasure Jim Chalmers was happy about the headline inflation rate 36 00:01:45,400 --> 00:01:47,680 Speaker 2: in the June quarter falling the two point seven percent, 37 00:01:47,720 --> 00:01:51,000 Speaker 2: but economists warned that unless the subsidies keep rolling out 38 00:01:51,040 --> 00:01:54,720 Speaker 2: of pocket, electricity costs could rise sharply. One estimate was 39 00:01:54,760 --> 00:01:57,880 Speaker 2: forty seven percent could rise sharply next year. The drop 40 00:01:57,880 --> 00:02:00,840 Speaker 2: in the headline rate of inflation reflected three hundred dollars 41 00:02:00,840 --> 00:02:03,920 Speaker 2: federal government energy rebates and state grants in Queensland and 42 00:02:03,920 --> 00:02:07,360 Speaker 2: Western Australia. Dr Chalmers said there was nothing artificial about 43 00:02:07,400 --> 00:02:10,960 Speaker 2: helping people with their power bills, true, but definitely artificially 44 00:02:10,960 --> 00:02:14,040 Speaker 2: cut inflation and underlying inflation. The measure that the Reserve 45 00:02:14,080 --> 00:02:16,919 Speaker 2: Bank likes is still at three point four percent, above 46 00:02:16,960 --> 00:02:19,320 Speaker 2: the Reserve banks two to three percent target range. 47 00:02:19,520 --> 00:02:21,320 Speaker 1: All right, moving on to story number two, and the 48 00:02:21,360 --> 00:02:24,560 Speaker 1: Reserve Bank has warned that the digital economy including AI, 49 00:02:25,520 --> 00:02:28,840 Speaker 1: surging global equity markets, and the weak economy in China 50 00:02:29,080 --> 00:02:32,000 Speaker 1: all posed threats to Australia's financial stability. 51 00:02:32,160 --> 00:02:35,440 Speaker 2: The Central Bank yesterday released its Financial Stability Report in 52 00:02:35,520 --> 00:02:39,880 Speaker 2: nominated three vulnerabilities. One is the digital economy, including AI. 53 00:02:40,360 --> 00:02:44,160 Speaker 2: The digital economy has made things more complex and interconnected. 54 00:02:44,200 --> 00:02:46,480 Speaker 2: It leads to speed and efficiency, but it also means 55 00:02:46,560 --> 00:02:49,680 Speaker 2: there's more risk if something goes wrong. The Reserve Bank's 56 00:02:49,720 --> 00:02:52,360 Speaker 2: also worried about what they call the low risk premiere, 57 00:02:52,720 --> 00:02:58,040 Speaker 2: inequity in credit markets, and imbalance in China's financial sector. Overall, 58 00:02:58,120 --> 00:03:01,640 Speaker 2: the share of borrow was experiencing vie financial stress here 59 00:03:01,760 --> 00:03:05,560 Speaker 2: in Australia remains manageable, growing number of people falling behind 60 00:03:05,560 --> 00:03:08,040 Speaker 2: on mortgage payments, but still pretty small according to the 61 00:03:08,080 --> 00:03:08,680 Speaker 2: Reserves Bank. 62 00:03:09,520 --> 00:03:12,799 Speaker 1: Story number three. Star Entertainment Group has secured a two 63 00:03:12,919 --> 00:03:16,520 Speaker 1: hundred million dollar financial rescue package, though the new management 64 00:03:16,600 --> 00:03:18,680 Speaker 1: has plenty of work to do to make the business 65 00:03:18,840 --> 00:03:20,120 Speaker 1: viable in the long term. 66 00:03:20,320 --> 00:03:22,480 Speaker 2: Sure Do corporate lenders have agreed to a new debt 67 00:03:22,480 --> 00:03:24,919 Speaker 2: facility in two tranches of one hundred million dollars each. 68 00:03:24,960 --> 00:03:27,880 Speaker 2: The first will be available subject to conditions from next month, 69 00:03:27,880 --> 00:03:29,919 Speaker 2: and the interest rate on the lanes is a very 70 00:03:29,960 --> 00:03:32,840 Speaker 2: hefty thirteen and a half percent, well above commercial rates, 71 00:03:33,080 --> 00:03:35,800 Speaker 2: basically demonstrates how risky the lenders perceived start to be. 72 00:03:36,280 --> 00:03:38,760 Speaker 2: Over the past month, a second New South Wales Independent 73 00:03:38,840 --> 00:03:42,480 Speaker 2: Casino Commission inquiry by barrister Adam Bellac found that the 74 00:03:42,480 --> 00:03:46,880 Speaker 2: group was continuing to fail standards required of a casino operator. 75 00:03:47,280 --> 00:03:49,520 Speaker 2: It failed to rule off its twenty twenty four financial 76 00:03:49,520 --> 00:03:52,400 Speaker 2: accounts and now it's failed to do a deal with 77 00:03:52,440 --> 00:03:55,480 Speaker 2: the Queensland government over tax relief, with the Miles government 78 00:03:55,760 --> 00:03:58,960 Speaker 2: saying it won't continue negotiations with the Star. The hope 79 00:03:59,000 --> 00:04:01,960 Speaker 2: was that seen million dollars in tax would be deferred. 80 00:04:02,240 --> 00:04:06,280 Speaker 1: Story number four. Mosaic Brands, the struggling women's retail group 81 00:04:06,320 --> 00:04:09,560 Speaker 1: behind Katie's, Nony, b Rivers and Moore, is hoping to 82 00:04:09,600 --> 00:04:13,920 Speaker 1: stave off financial collapse by asking global suppliers to accept 83 00:04:14,000 --> 00:04:16,520 Speaker 1: terms where they'll be paid as little as one third 84 00:04:16,600 --> 00:04:17,320 Speaker 1: of what they're owed. 85 00:04:17,640 --> 00:04:21,560 Speaker 2: Incredible story this Mosaic Brands chief executive Erica Birch told 86 00:04:21,720 --> 00:04:24,800 Speaker 2: and the company's chief financial officer, David Clark, have engaged 87 00:04:24,800 --> 00:04:28,720 Speaker 2: in negotiations with supplies from China, India and Bangladesh. There 88 00:04:28,800 --> 00:04:32,080 Speaker 2: know tens of millions of dollars, with some supplies asked 89 00:04:32,120 --> 00:04:35,240 Speaker 2: to accept reduced payment terms. According to a story in 90 00:04:35,279 --> 00:04:37,680 Speaker 2: The Citny Morning Heir on the Age, In most cases, 91 00:04:37,680 --> 00:04:41,119 Speaker 2: Mosaic Brands, which also operates Rockman's and Millers, has sold 92 00:04:41,120 --> 00:04:44,080 Speaker 2: the garments received from the suppliers and banked the proceeds 93 00:04:44,080 --> 00:04:47,159 Speaker 2: without paying for them. Mosaic Brands, which employs four thousand 94 00:04:47,240 --> 00:04:50,000 Speaker 2: staff and has about seven hundred stores, failed to lodge 95 00:04:50,040 --> 00:04:53,679 Speaker 2: its financial accounts last month with the ASX. Its shares 96 00:04:53,720 --> 00:04:54,960 Speaker 2: are currently suspended. 97 00:04:55,320 --> 00:04:58,719 Speaker 1: Last one Story number five two Fierce competitors Sean could 98 00:04:58,800 --> 00:05:01,320 Speaker 1: end up as table Mates theater we'll see looking into 99 00:05:01,320 --> 00:05:05,600 Speaker 1: whether it should allow Sanitarium, which owns Wheatbix, to buy 100 00:05:05,640 --> 00:05:09,400 Speaker 1: the Vitebrits brand, intellectual property and goodwill from Nesle. 101 00:05:09,520 --> 00:05:12,840 Speaker 2: Australia the Competition Watchdog is deciding whether a merger of 102 00:05:12,880 --> 00:05:14,840 Speaker 2: the two would lead to higher prices or a hit 103 00:05:14,880 --> 00:05:18,040 Speaker 2: to quality. Both are among the leading cerial brands across 104 00:05:18,040 --> 00:05:22,120 Speaker 2: the country. Sanitarium producers and supplies Wheatbix and Michael and 105 00:05:22,200 --> 00:05:25,920 Speaker 2: a shock to me, it actually also manufactures Vitabrits for Nesle. 106 00:05:26,200 --> 00:05:29,279 Speaker 2: There you go. Australian Health and Nutrition Association Limited, which 107 00:05:29,320 --> 00:05:32,320 Speaker 2: trades as Sanitarium, is a registered not for profit organization 108 00:05:32,400 --> 00:05:36,000 Speaker 2: wholly owned by the Seventh Day Adventist Church. It's Wheatbiks brand, 109 00:05:36,600 --> 00:05:39,960 Speaker 2: which started ninety eight years ago, is the leading wheat 110 00:05:40,000 --> 00:05:41,480 Speaker 2: biscuit brand in Australia. 111 00:05:41,880 --> 00:05:43,760 Speaker 1: That's quite the claim to fame. There we go the 112 00:05:43,760 --> 00:05:46,160 Speaker 1: top five business stories in five minutes. Thank you Sean, 113 00:05:46,400 --> 00:05:49,279 Speaker 1: Thank you Michael. It is Friday, the twenty seventh of 114 00:05:49,320 --> 00:05:52,040 Speaker 1: September twenty twenty four. Remember to hit follow on the 115 00:05:52,080 --> 00:05:54,240 Speaker 1: podcast and if five minutes isn't enough, you can find 116 00:05:54,240 --> 00:05:57,359 Speaker 1: our longer daily show called Fear and Greed wherever you 117 00:05:57,400 --> 00:05:59,680 Speaker 1: listen to podcasts, I'm Michael Thompson and that was the 118 00:05:59,720 --> 00:06:04,919 Speaker 1: fast by business News, by Fear and Greed. A great day.