1 00:00:04,080 --> 00:00:08,459 Michael Thompson: Australia's unemployment rate at near- record lows as jobs surge, 2 00:00:08,639 --> 00:00:13,860 Michael Thompson: corporate insolvencies jump post- COVID, and Netflix's crackdown on password 3 00:00:13,860 --> 00:00:16,980 Michael Thompson: theft is working. Welcome to Fear and Greed Business News, 4 00:00:16,980 --> 00:00:20,790 Michael Thompson: Australia's best business podcast. It's Friday the 21st of July 5 00:00:20,820 --> 00:00:24,360 Michael Thompson: 2023. I'm Michael Thompson, and good morning, Sean Aylmer. 6 00:00:24,480 --> 00:00:25,530 Sean Aylmer: Good morning, Michael. 7 00:00:25,980 --> 00:00:28,679 Michael Thompson: Sean after the show, you are speaking today to Ed 8 00:00:28,679 --> 00:00:33,420 Michael Thompson: John, executive manager stewardship at ACSI, which is the Australian 9 00:00:33,420 --> 00:00:37,740 Michael Thompson: Council of Superannuation Investors. Sounds impressive, a council of superannuation 10 00:00:37,740 --> 00:00:40,350 Michael Thompson: investors. This is a very influential group. 11 00:00:40,620 --> 00:00:44,280 Sean Aylmer: It is. It's all the big superfunds are part of 12 00:00:44,280 --> 00:00:47,759 Sean Aylmer: this. In fact, if you combined the assets of the 13 00:00:47,759 --> 00:00:52,318 Sean Aylmer: ACSI members, on average, you've got about 10% of every publicly- 14 00:00:52,320 --> 00:00:56,010 Sean Aylmer: listed company, so it is a huge group, very, very 15 00:00:56,010 --> 00:01:00,120 Sean Aylmer: influential. Basically, we talk about CEO pay and the fact 16 00:01:00,180 --> 00:01:04,559 Sean Aylmer: that realized pay has come off somewhat after a pretty 17 00:01:04,559 --> 00:01:07,319 Sean Aylmer: big year last year. Whether that's a good or a 18 00:01:07,319 --> 00:01:10,259 Sean Aylmer: bad thing and what Ed John thinks is going to 19 00:01:10,260 --> 00:01:13,559 Sean Aylmer: happen in the future, it's all about CEO pay. Fascinating topic. 20 00:01:13,770 --> 00:01:16,170 Michael Thompson: Yeah, it's a really good conversation and well worth a 21 00:01:16,170 --> 00:01:19,110 Michael Thompson: listen this morning. The main story, though, before we get 22 00:01:19,110 --> 00:01:21,000 Michael Thompson: to that, Sean, any way you look at it at 23 00:01:21,000 --> 00:01:24,119 Michael Thompson: the moment, the labor market is hot with unemployment last 24 00:01:24,120 --> 00:01:28,199 Michael Thompson: month coming in at 3. 5%, thanks to a surprising 25 00:01:28,199 --> 00:01:29,190 Michael Thompson: jump in jobs. 26 00:01:29,549 --> 00:01:31,680 Sean Aylmer: The economy is supposed to be slowing, Michael. I mean, 27 00:01:31,680 --> 00:01:34,110 Sean Aylmer: that's what the retailers are telling us. That's what loan 28 00:01:34,110 --> 00:01:36,330 Sean Aylmer: arrears that the big banks are saying. That's what the 29 00:01:36,330 --> 00:01:39,990 Sean Aylmer: Reserve Bank and the government is talking about, but someone 30 00:01:40,230 --> 00:01:43,470 Sean Aylmer: forgot to tell the jobs market. Now, to be fair, 31 00:01:43,620 --> 00:01:46,889 Sean Aylmer: the labor market figures from the Bureau of Statistics are 32 00:01:46,889 --> 00:01:50,250 Sean Aylmer: a lagging indicator. So while the impact of the higher 33 00:01:50,250 --> 00:01:52,740 Sean Aylmer: cost of living and interest rates is hitting most sectors, 34 00:01:53,010 --> 00:01:55,170 Sean Aylmer: it hasn't yet knocked on the door of the labor 35 00:01:55,170 --> 00:01:59,070 Sean Aylmer: market. But still, you'd expect some sort of impact by 36 00:01:59,070 --> 00:02:03,179 Sean Aylmer: now, especially given leading indicators. Things like job vacancy ads 37 00:02:03,179 --> 00:02:07,410 Sean Aylmer: and hiring intentions have come off. To the numbers, employment 38 00:02:07,410 --> 00:02:12,120 Sean Aylmer: raised by about 32, 600 people in June and the workforce 39 00:02:12,180 --> 00:02:16,500 Sean Aylmer: is now over a million people larger than pre- COVID. Full- 40 00:02:16,500 --> 00:02:21,449 Sean Aylmer: time employment has increased by 380,000 over the past year, 41 00:02:21,719 --> 00:02:25,260 Sean Aylmer: while part- time employment is up about 30,000. The states of 42 00:02:25,260 --> 00:02:28,740 Sean Aylmer: New South Wales and Tasmania with unemployment rates of 2. 9% 43 00:02:29,430 --> 00:02:35,008 Sean Aylmer: and 3. 5%, respectively, now have all- time low unemployment 44 00:02:35,010 --> 00:02:40,079 Sean Aylmer: rates. The participation rate edged up, though, it still remains near- 45 00:02:40,079 --> 00:02:44,639 Sean Aylmer: record lows. There are more hours worked. It just is 46 00:02:44,790 --> 00:02:47,700 Sean Aylmer: quite a red- hot labor market. Michael. 47 00:02:48,060 --> 00:02:51,569 Michael Thompson: Quite red- hot. I like that. Sean, you know how 48 00:02:51,570 --> 00:02:53,280 Michael Thompson: every now and then I like to prove to you 49 00:02:53,280 --> 00:02:55,200 Michael Thompson: just how much I listen to you. 50 00:02:55,200 --> 00:02:55,560 Sean Aylmer: Yes, yes. 51 00:02:55,830 --> 00:02:59,250 Michael Thompson: Well, on Wednesday, I believe it was, when we were 52 00:02:59,250 --> 00:03:01,919 Michael Thompson: talking about the minutes from the last meeting of the 53 00:03:01,919 --> 00:03:05,370 Michael Thompson: board of the Reserve Bank, you said that before they 54 00:03:05,520 --> 00:03:08,280 Michael Thompson: make a decision next time on rates that there'll be 55 00:03:08,280 --> 00:03:10,470 Michael Thompson: two key sets of data that they'll be looking at. 56 00:03:10,470 --> 00:03:11,160 Sean Aylmer: Ah, you were. 57 00:03:11,460 --> 00:03:14,549 Michael Thompson: One of those is inflation data out next week, and 58 00:03:14,549 --> 00:03:16,918 Michael Thompson: the other one, the other big one is, of course, 59 00:03:16,919 --> 00:03:19,650 Michael Thompson: the unemployment figures from yesterday. What does it all mean 60 00:03:19,650 --> 00:03:21,210 Michael Thompson: for interest rates? Have I proven to you, first of 61 00:03:21,210 --> 00:03:22,770 Michael Thompson: all, that I listen and that I take notes? 62 00:03:23,070 --> 00:03:26,548 Sean Aylmer: Well, you listen, and you understand. Even more impressive. 63 00:03:27,000 --> 00:03:28,500 Michael Thompson: I'm impressed, too. Please, go on. 64 00:03:28,860 --> 00:03:32,219 Sean Aylmer: It certainly puts pressure on the Reserve Bank to lift 65 00:03:32,309 --> 00:03:36,149 Sean Aylmer: interest rates one more time, but it isn't a done 66 00:03:36,270 --> 00:03:40,650 Sean Aylmer: deal. As you just mentioned, the quarterly inflation figures for 67 00:03:40,650 --> 00:03:44,130 Sean Aylmer: the June quarter, which is due out next week, that'll 68 00:03:44,130 --> 00:03:47,099 Sean Aylmer: come into calculations. In fact, that's probably even more important, 69 00:03:47,099 --> 00:03:51,119 Sean Aylmer: the inflation data, than the employment data. Now in March, 70 00:03:51,120 --> 00:03:54,780 Sean Aylmer: annualized inflation was 7%. The Reserve Bank will really want 71 00:03:54,780 --> 00:03:57,780 Sean Aylmer: it closer to 6%, maybe not 6%, 6.3, 6. 4% for 72 00:03:59,190 --> 00:04:02,279 Sean Aylmer: the June quarter. If it comes in at that, it'll 73 00:04:02,280 --> 00:04:05,790 Sean Aylmer: be a very finely balanced decision. Now, bond markets have 74 00:04:05,790 --> 00:04:08,939 Sean Aylmer: now ascribed a 40 to 45% chance that the Reserve 75 00:04:08,940 --> 00:04:13,470 Sean Aylmer: Bank will lift rates when its board meets on Tuesday 76 00:04:13,530 --> 00:04:18,240 Sean Aylmer: week. If the inflation data next week is a little 77 00:04:18,240 --> 00:04:23,248 Sean Aylmer: bit stronger than expected, alongside yesterday's labor force data, well, 78 00:04:23,250 --> 00:04:25,470 Sean Aylmer: it's likely that rates will go up. But if it's 79 00:04:25,470 --> 00:04:26,610 Sean Aylmer: not, it probably won't. 80 00:04:27,389 --> 00:04:31,200 Michael Thompson: All right. Okay. I think I've probably reached my quota 81 00:04:31,230 --> 00:04:34,529 Michael Thompson: now of showing off. I've got nothing left in the 82 00:04:34,529 --> 00:04:37,140 Michael Thompson: tank for the rest of the show, Sean. Local markets, 83 00:04:37,140 --> 00:04:37,801 Michael Thompson: how did they perform yesterday? 84 00:04:37,801 --> 00:04:42,270 Sean Aylmer: The S&P/ASX 200, it closed up very slightly. In fact, it 85 00:04:42,270 --> 00:04:45,750 Sean Aylmer: was up one point, I think, to 7, 325 points. It 86 00:04:45,750 --> 00:04:49,320 Sean Aylmer: started sharply higher on the back of Wall Street, then 87 00:04:49,320 --> 00:04:52,800 Sean Aylmer: pretty much lost ground all day. Given the economic news 88 00:04:52,800 --> 00:04:54,900 Sean Aylmer: and what that could mean for interest rates, it actually 89 00:04:54,900 --> 00:04:57,839 Sean Aylmer: wasn't a bad day. The financials and tech companies were 90 00:04:57,839 --> 00:05:01,320 Sean Aylmer: the best performers, while the healthcare index was the worst 91 00:05:01,349 --> 00:05:05,428 Sean Aylmer: of the 11 sub- indices of the ASX 200. CSL was 92 00:05:05,430 --> 00:05:08,039 Sean Aylmer: down again. Since the beginning of last month, the one- 93 00:05:08,040 --> 00:05:12,029 Sean Aylmer: time largest company on the boards is now off 15%, 94 00:05:12,029 --> 00:05:15,450 Sean Aylmer: quite a fall from grace. The banks were mixed yesterday. 95 00:05:15,450 --> 00:05:21,209 Sean Aylmer: QBE Insurance jumped 2. 4%. Fortescue Metals Group raised 1.4%. Some of the 96 00:05:21,210 --> 00:05:24,779 Sean Aylmer: gold miners performed poorly. Northern Star led those ones down. 97 00:05:25,080 --> 00:05:27,930 Sean Aylmer: In corporate news, Telstra said it will cut nearly 500 98 00:05:27,930 --> 00:05:30,840 Sean Aylmer: jobs so it can automate some operations and compete harder 99 00:05:31,080 --> 00:05:34,200 Sean Aylmer: with software rivals. For business customers, its share price closed 100 00:05:34,200 --> 00:05:38,368 Sean Aylmer: down slightly, (inaudible) share price jumped 37% after the 101 00:05:38,370 --> 00:05:43,529 Sean Aylmer: company, which develops investigative software for large businesses, said it 102 00:05:43,529 --> 00:05:45,720 Sean Aylmer: expects earnings to be higher than they were last year, 103 00:05:45,720 --> 00:05:48,719 Sean Aylmer: thanks to a couple of major contracts it signed. And 104 00:05:48,720 --> 00:05:51,029 Sean Aylmer: buy now, pay later group Zip Co recorded a big 105 00:05:51,029 --> 00:05:54,570 Sean Aylmer: jump in revenue and transactions, sending its share price up 106 00:05:54,630 --> 00:05:57,178 Sean Aylmer: to, well, it finished up 2%, but earlier in the day 107 00:05:57,178 --> 00:05:59,639 Sean Aylmer: was up quite a bit more. Mind you, at 45 108 00:05:59,639 --> 00:06:02,880 Sean Aylmer: cents a share, it is still a long way below 109 00:06:02,880 --> 00:06:06,030 Sean Aylmer: the February 2021 peak of more than $ 12. 110 00:06:06,839 --> 00:06:09,690 Michael Thompson: Yes. Yes it is. There's a bit of corporate news 111 00:06:09,690 --> 00:06:11,820 Michael Thompson: around. Okay, what's happening in international markets? 112 00:06:11,880 --> 00:06:13,919 Sean Aylmer: Well, it's earning season on Wall Street, so there's plenty 113 00:06:13,920 --> 00:06:17,069 Sean Aylmer: going on there. We've had some big companies releasing results 114 00:06:17,070 --> 00:06:20,669 Sean Aylmer: recently, including Tesla and Netflix. I'll talk about them a 115 00:06:20,670 --> 00:06:23,580 Sean Aylmer: bit later. So far, the market has held up pretty 116 00:06:23,580 --> 00:06:26,639 Sean Aylmer: well. There were fears that earnings would disappoint, that would 117 00:06:26,639 --> 00:06:30,359 Sean Aylmer: send the S&P 500 and tech- heavy NASDAQ lower, but so 118 00:06:30,360 --> 00:06:33,089 Sean Aylmer: far, so good. Not a lot going on in commodity 119 00:06:33,089 --> 00:06:36,329 Sean Aylmer: markets, Michael, and the Aussie dollar, well, it was helped 120 00:06:36,330 --> 00:06:40,200 Sean Aylmer: a little bit by the labor market news. It is buying 68. 121 00:06:40,200 --> 00:06:42,150 Sean Aylmer: 2 US cents or thereabouts. 122 00:06:42,420 --> 00:06:44,250 Michael Thompson: Okay, we'll be back in a moment with the rest 123 00:06:44,250 --> 00:06:53,609 Michael Thompson: of the day's business news. Sean, Prime Minister Anthony Albanese 124 00:06:53,609 --> 00:06:56,640 Michael Thompson: was among a host of politicians from both sides of 125 00:06:56,640 --> 00:07:00,390 Michael Thompson: the political fence to attend former cabinet minister Simon Crean's 126 00:07:00,390 --> 00:07:00,751 Michael Thompson: funeral yesterday. 127 00:07:00,751 --> 00:07:04,290 Sean Aylmer: The 74- year- old died suddenly last month while in 128 00:07:04,290 --> 00:07:07,678 Sean Aylmer: Germany and a state funeral was held in Melbourne yesterday. 129 00:07:07,710 --> 00:07:11,639 Sean Aylmer: Albanese called Crean " a great Australian and beloved son of 130 00:07:11,639 --> 00:07:14,280 Sean Aylmer: the Labour Party." He said, " Above all, he had a 131 00:07:14,280 --> 00:07:18,540 Sean Aylmer: sense of fairness as his guiding star." Meanwhile, the secretary 132 00:07:18,540 --> 00:07:22,049 Sean Aylmer: who developed and rolled out the Robodebt program has been 133 00:07:22,050 --> 00:07:26,580 Sean Aylmer: suspended without pay. Kathryn Campbell was suspended on July 10, 134 00:07:26,580 --> 00:07:30,449 Sean Aylmer: following the release of adverse findings against her by the 135 00:07:30,450 --> 00:07:34,350 Sean Aylmer: Robodebt Royal Commission. Campbell had been serving as a deputy 136 00:07:34,350 --> 00:07:37,590 Sean Aylmer: secretary in the AUKUS Task Force group at the Defense 137 00:07:37,590 --> 00:07:41,429 Sean Aylmer: Department after losing her secretary job at the Foreign Affairs 138 00:07:41,429 --> 00:07:42,540 Sean Aylmer: and Trade Department. 139 00:07:43,290 --> 00:07:47,159 Michael Thompson: Sean, Flight Centre's share price jumped 4% yesterday after it 140 00:07:47,160 --> 00:07:50,490 Michael Thompson: upped its profit guidance, thanks to a surge in corporate 141 00:07:50,490 --> 00:07:51,360 Michael Thompson: travel earnings. 142 00:07:51,630 --> 00:07:55,140 Sean Aylmer: Flight Centre increased its earnings forecast by about 6%, Michael, 143 00:07:55,140 --> 00:07:59,940 Sean Aylmer: joining Alliance Air Services and Ardent Leisure in upgrading outlooks. 144 00:08:00,450 --> 00:08:04,289 Sean Aylmer: They have been the exception, though, because most companies around 145 00:08:04,289 --> 00:08:07,920 Sean Aylmer: the place have been downgrading. Anyway, Flight Centre said high 146 00:08:07,920 --> 00:08:11,460 Sean Aylmer: airfares and a big expansion in corporate travel clients meant total 147 00:08:11,580 --> 00:08:16,229 Sean Aylmer: transaction volumes jumped nearly 25% last financial year, compared to 148 00:08:16,230 --> 00:08:20,429 Sean Aylmer: the pre-COVID 2019 financial year. Flight Centre Managing Director Graham 149 00:08:20,429 --> 00:08:23,639 Sean Aylmer: Turner, he was pretty upbeat yesterday. He said he expects 150 00:08:23,639 --> 00:08:26,460 Sean Aylmer: the larger volumes of new business to continue. 151 00:08:26,850 --> 00:08:29,400 Michael Thompson: So clearly, the predictions that everyone would just kind of 152 00:08:29,400 --> 00:08:33,090 Michael Thompson: stick with Zoom meetings from now on, instead of corporate 153 00:08:33,090 --> 00:08:34,650 Michael Thompson: travel, are a little bit off. 154 00:08:35,490 --> 00:08:38,578 Sean Aylmer: Well, in the case of Flight Centre, I don't know 155 00:08:38,580 --> 00:08:42,089 Sean Aylmer: that we can say that as a blanket comment, but 156 00:08:42,090 --> 00:08:43,588 Sean Aylmer: certainly in the case of Flight Centre. 157 00:08:43,890 --> 00:08:46,650 Michael Thompson: They're my favorite kind of comments, Sean, blanket comments that 158 00:08:46,650 --> 00:08:47,130 Michael Thompson: apply to all. 159 00:08:47,130 --> 00:08:48,270 Sean Aylmer: All right. 160 00:08:48,270 --> 00:08:52,380 Michael Thompson: Anyway, we will push on then, Sean. Helen Rosamond, who 161 00:08:52,380 --> 00:08:56,458 Michael Thompson: defrauded National Australia Bank of millions of dollars, will spend 162 00:08:56,460 --> 00:08:58,799 Michael Thompson: a minimum of eight years in jail for what the 163 00:08:58,799 --> 00:09:02,309 Michael Thompson: judge said was " a scheme that was quite breathtaking in 164 00:09:02,309 --> 00:09:03,210 Michael Thompson: its audacity." 165 00:09:03,690 --> 00:09:07,650 Sean Aylmer: Judge Robert Sutherland sentenced Rosamond to 14 years with a 166 00:09:07,650 --> 00:09:10,889 Sean Aylmer: minimum non- parole of eight years. Last November, a jury 167 00:09:10,889 --> 00:09:16,078 Sean Aylmer: found her guilty of 92 fraud charges laid against her. 168 00:09:16,440 --> 00:09:20,040 Sean Aylmer: The fraud involves sending falsified and inflated invoices from her 169 00:09:20,040 --> 00:09:23,880 Sean Aylmer: event management company, Human Group, to her friend Rosemary Rogers, 170 00:09:24,150 --> 00:09:26,850 Sean Aylmer: who happened to be the chief of staff to the 171 00:09:26,880 --> 00:09:30,270 Sean Aylmer: National Australia Bank Chief Executives Cameron Clyne and then Andrew 172 00:09:30,270 --> 00:09:33,389 Sean Aylmer: Thorburn. Rogers, who was authorized to approve payments of up 173 00:09:33,389 --> 00:09:38,370 Sean Aylmer: to $ 20 million, would then approve the invoices without questioning 174 00:09:38,370 --> 00:09:41,338 Sean Aylmer: them. Rogers pleaded guilty to charges of being an agent 175 00:09:41,340 --> 00:09:44,610 Sean Aylmer: corruptly receiving a benefit. She was sentenced to eight years 176 00:09:44,610 --> 00:09:47,849 Sean Aylmer: jail earlier in the year. Rosamond is going to jail 177 00:09:47,849 --> 00:09:48,809 Sean Aylmer: for 15 years. 178 00:09:49,170 --> 00:09:50,549 Michael Thompson: I mentioned this one at the top of the show, 179 00:09:50,549 --> 00:09:55,228 Michael Thompson: Sean. The number of corporate insolvencies jumped by 62% in 180 00:09:55,230 --> 00:09:57,870 Michael Thompson: the year to June with the potential for many more 181 00:09:57,870 --> 00:09:59,010 Michael Thompson: as the economy slows. 182 00:09:59,280 --> 00:10:02,490 Sean Aylmer: Australian Securities and Investments Commission figures show that nearly 8, 183 00:10:02,610 --> 00:10:08,549 Sean Aylmer: 000 Australian companies went into administration, liquidation or receivership last 184 00:10:08,549 --> 00:10:13,439 Sean Aylmer: financial year, up from 4, 900 the previous year. It's the 185 00:10:13,440 --> 00:10:18,059 Sean Aylmer: highest number of business failures since 2018- 19 and during COVID, 186 00:10:18,059 --> 00:10:21,358 Sean Aylmer: insolvency numbers fell, thanks to temporary measures put in place 187 00:10:21,360 --> 00:10:25,230 Sean Aylmer: by the Morrison government to protect vulnerable businesses from the 188 00:10:25,230 --> 00:10:29,639 Sean Aylmer: economic shock of the pandemic. The construction sector is definitely 189 00:10:29,639 --> 00:10:34,230 Sean Aylmer: among the hardest hit with insolvencies up 72%. New South 190 00:10:34,230 --> 00:10:37,170 Sean Aylmer: Wales and Victoria accounted for the bulk of those and, 191 00:10:37,170 --> 00:10:39,809 Sean Aylmer: in fact, those two states recorded the biggest rise in 192 00:10:39,809 --> 00:10:43,199 Sean Aylmer: overall insolvencies. We talked a lot about the likelihood of 193 00:10:43,200 --> 00:10:48,630 Sean Aylmer: insolvencies surging, didn't happen during COVID, definitely is happening now. 194 00:10:48,630 --> 00:10:52,020 Michael Thompson: How about this story, Sean? Pacific Islander fruit pickers and 195 00:10:52,020 --> 00:10:55,920 Michael Thompson: farm workers across two states will be found new jobs 196 00:10:55,980 --> 00:10:59,580 Michael Thompson: after a federal government decision to revoke a business license 197 00:10:59,880 --> 00:11:02,609 Michael Thompson: in response to what unions say amounts to modern slavery. 198 00:11:03,030 --> 00:11:07,800 Sean Aylmer: Yeah. Australian labor hire company Linx Employment has been under 199 00:11:07,800 --> 00:11:12,270 Sean Aylmer: investigation following claims workers were mistreated. The company claims to 200 00:11:12,270 --> 00:11:16,139 Sean Aylmer: have a large database of local and international workers sourcing long- 201 00:11:16,139 --> 00:11:20,070 Sean Aylmer: term employment solutions from the Pacific Islands. But workers at 202 00:11:20,070 --> 00:11:24,630 Sean Aylmer: the Tasmanian labor hire company claim management seized their visas, 203 00:11:24,958 --> 00:11:29,400 Sean Aylmer: refused to provide payslips and staff were bullied and threatened. 204 00:11:29,700 --> 00:11:32,970 Sean Aylmer: Australian Workers Union National Secretary Paul Farrow said the business 205 00:11:32,970 --> 00:11:37,109 Sean Aylmer: model amounted to modern slavery. Now the government has stepped 206 00:11:37,110 --> 00:11:39,900 Sean Aylmer: in and revoked the company's business license. 207 00:11:40,440 --> 00:11:43,920 Michael Thompson: Sydney Airport has called for Qantas and Virgin Australia to 208 00:11:43,920 --> 00:11:47,610 Michael Thompson: make room for other airlines at the gateway by giving 209 00:11:47,610 --> 00:11:48,420 Michael Thompson: up slots. 210 00:11:48,780 --> 00:11:52,170 Sean Aylmer: Airport boss Geoff Culbert issued the call on the back 211 00:11:52,170 --> 00:11:55,228 Sean Aylmer: of new passenger data showing numbers on key domestic routes, 212 00:11:55,230 --> 00:11:58,590 Sean Aylmer: such as Sydney, Melbourne are still well down on 2019 213 00:11:58,590 --> 00:12:02,280 Sean Aylmer: levels. Culbert said if incumbent airlines are flying less on 214 00:12:02,280 --> 00:12:04,320 Sean Aylmer: those routes, they should give up their slots to other 215 00:12:04,320 --> 00:12:07,738 Sean Aylmer: domestic carriers or international airlines seeking to operate out of 216 00:12:07,740 --> 00:12:12,270 Sean Aylmer: Australia's biggest gateway. Slots are allocated to airlines at capacity- 217 00:12:12,270 --> 00:12:15,269 Sean Aylmer: constrained airports like Sydney, allowing them a specific period for 218 00:12:15,270 --> 00:12:18,780 Sean Aylmer: takeoffs and landings. Under current rules, airlines must use their 219 00:12:18,780 --> 00:12:21,000 Sean Aylmer: slots in Sydney at least 80% of the time in 220 00:12:21,000 --> 00:12:24,420 Sean Aylmer: order to keep them. Now June passenger traffic released by 221 00:12:24,420 --> 00:12:27,270 Sean Aylmer: Sydney Airport yesterday show just, I mean a very slight 222 00:12:27,270 --> 00:12:30,029 Sean Aylmer: increase, 1. 2 increase in domestic travelers compared to June 223 00:12:30,030 --> 00:12:35,489 Sean Aylmer: 2022, but a 67% jump in international passenger numbers. 224 00:12:35,699 --> 00:12:36,809 Michael Thompson: Well, that is significant. 225 00:12:36,929 --> 00:12:37,319 Sean Aylmer: Sure is. 226 00:12:38,220 --> 00:12:42,630 Michael Thompson: Tech billionaire Scott Farquhar says demand for workers to return 227 00:12:42,630 --> 00:12:46,620 Michael Thompson: to the office cubicle is shortsighted, and that half of 228 00:12:46,620 --> 00:12:50,759 Michael Thompson: new staff at Atlassian now work remotely based in regional 229 00:12:50,759 --> 00:12:52,319 Michael Thompson: areas around the world. 230 00:12:52,859 --> 00:12:55,230 Sean Aylmer: The co- founder of the software giant said attracting and 231 00:12:55,230 --> 00:12:59,130 Sean Aylmer: keeping talent in the sector was becoming increasingly important if 232 00:12:59,130 --> 00:13:02,309 Sean Aylmer: Australia was to maintain its position as the Lucky Country 233 00:13:02,610 --> 00:13:05,999 Sean Aylmer: in very difficult times. Now, speaking at the Technology Council 234 00:13:06,000 --> 00:13:11,400 Sean Aylmer: of Australia's National Tech Summit in Brisbane, Farquhar said flexible 235 00:13:11,400 --> 00:13:15,870 Sean Aylmer: conditions were a boon for decentralized states, such as Queensland 236 00:13:15,870 --> 00:13:18,990 Sean Aylmer: that did not have to attract entire companies to benefit 237 00:13:18,990 --> 00:13:22,228 Sean Aylmer: from growth in the tech sector. Farquhar said 53% of 238 00:13:22,230 --> 00:13:26,880 Sean Aylmer: new employees recruited by Atlassian over the past two years 239 00:13:27,270 --> 00:13:30,929 Sean Aylmer: live more than two hours from a company office. The 240 00:13:30,960 --> 00:13:33,510 Sean Aylmer: company employs more than 10, 000 people around the world, a 241 00:13:33,510 --> 00:13:36,030 Sean Aylmer: quarter of its Australian workforce live outside Sydney. 242 00:13:36,450 --> 00:13:40,229 Michael Thompson: Isn't that funny just how divided basically the business community 243 00:13:40,230 --> 00:13:42,088 Michael Thompson: is over this, where you've got Atlassian at one end 244 00:13:42,090 --> 00:13:44,040 Michael Thompson: of the scale and then you've got the big banks 245 00:13:44,040 --> 00:13:45,630 Michael Thompson: right at the other end saying that they want people 246 00:13:45,630 --> 00:13:48,570 Michael Thompson: in the office pretty much as much as possible? There 247 00:13:48,570 --> 00:13:50,790 Michael Thompson: really does not seem to be a consensus. 248 00:13:51,120 --> 00:13:55,230 Sean Aylmer: No. Even within the tech industry, for example, remember Farquhar 249 00:13:55,230 --> 00:13:57,389 Sean Aylmer: actually took on Elon Musk over this because Elon Musk 250 00:13:57,389 --> 00:14:02,130 Sean Aylmer: wanted everyone back in the office. Farquhar tweeted how silly 251 00:14:02,130 --> 00:14:05,340 Sean Aylmer: that was and Elon Musk bit back and, yeah, there 252 00:14:05,340 --> 00:14:07,290 Sean Aylmer: really isn't a uniform approach. 253 00:14:07,710 --> 00:14:10,290 Michael Thompson: Turning to international news now, Sean, and a very serious 254 00:14:10,290 --> 00:14:12,840 Michael Thompson: story, this one. Three people are dead, including the gunman 255 00:14:12,840 --> 00:14:16,380 Michael Thompson: and at least six are injured after an Auckland CBD 256 00:14:16,380 --> 00:14:20,070 Michael Thompson: shooting described by New Zealand Prime Minister Chris Hipkins as 257 00:14:20,070 --> 00:14:22,140 Michael Thompson: a quote, " very grim morning." 258 00:14:22,980 --> 00:14:25,590 Sean Aylmer: A police officer, who is critically injured, but has since 259 00:14:25,590 --> 00:14:28,109 Sean Aylmer: stabilized, is among the injured from the attack at a 260 00:14:28,110 --> 00:14:31,680 Sean Aylmer: building and construction site. Gunfire was heard in the center 261 00:14:31,680 --> 00:14:35,070 Sean Aylmer: of Auckland around 7: 20 AM. Dozens of police vehicles, 262 00:14:35,070 --> 00:14:38,729 Sean Aylmer: a helicopter and several ambulances scrambled to attend. Once the 263 00:14:38,730 --> 00:14:42,720 Sean Aylmer: threat became clear, local media reported the gunman was a 24- year- 264 00:14:42,720 --> 00:14:45,690 Sean Aylmer: old man, who worked at the building and had arrived 265 00:14:45,690 --> 00:14:49,170 Sean Aylmer: there with a pump- action shotgun. He was later identified 266 00:14:49,170 --> 00:14:52,469 Sean Aylmer: he was serving a community- based sentence of home detention 267 00:14:52,740 --> 00:14:55,500 Sean Aylmer: for family violence offenses when this happened. 268 00:14:56,610 --> 00:14:58,379 Michael Thompson: Sean, I mentioned this one at the top of the 269 00:14:58,379 --> 00:15:02,010 Michael Thompson: show as well. Netflix has cracked down on passwords, seems 270 00:15:02,010 --> 00:15:05,160 Michael Thompson: to be working, with the streaming service recording one of 271 00:15:05,160 --> 00:15:09,269 Michael Thompson: its biggest jumps in subscriber numbers since the beginning of 272 00:15:09,270 --> 00:15:09,960 Michael Thompson: the pandemic. 273 00:15:10,410 --> 00:15:15,420 Sean Aylmer: Yes. Netflix added nearly 6 million subscribers in the three 274 00:15:15,420 --> 00:15:18,449 Sean Aylmer: months at the end of June. It now has 238 275 00:15:18,480 --> 00:15:25,680 Sean Aylmer: million worldwide subscribers, phenomenal numbers, but management warned that competition 276 00:15:25,680 --> 00:15:29,369 Sean Aylmer: is tough and not helping is the strike by both 277 00:15:29,370 --> 00:15:33,480 Sean Aylmer: writers and actors unions in the US. Investors weren't impressed 278 00:15:33,480 --> 00:15:35,008 Sean Aylmer: at the end of the day and sold the stock 279 00:15:35,010 --> 00:15:38,190 Sean Aylmer: down. Now Netflix reckons new subscribers this quarter will be 280 00:15:38,190 --> 00:15:41,490 Sean Aylmer: about the same level. Last year, it introduced a low- 281 00:15:41,490 --> 00:15:44,940 Sean Aylmer: priced option that includes commercials and then began to block 282 00:15:44,940 --> 00:15:48,450 Sean Aylmer: the sharing of passwords, which it said enabled an estimated 283 00:15:48,450 --> 00:15:52,980 Sean Aylmer: 100 million people to watch its TV series and films 284 00:15:53,010 --> 00:15:57,630 Sean Aylmer: for free. That crackdown is now working, hence, they're getting 285 00:15:57,930 --> 00:15:59,160 Sean Aylmer: bigger subscriber numbers. 286 00:15:59,520 --> 00:16:01,710 Michael Thompson: Do you reckon password theft is a bit harsh? 287 00:16:02,280 --> 00:16:04,320 Sean Aylmer: Depends whether you do it or not really, doesn't it? 288 00:16:04,559 --> 00:16:07,230 Michael Thompson: Oh, no. Look, I mean, just objectively I would say 289 00:16:07,230 --> 00:16:10,469 Michael Thompson: that like family entertainment collaboration or something like that is 290 00:16:10,469 --> 00:16:11,341 Michael Thompson: actually a nicer way to put it. 291 00:16:11,341 --> 00:16:11,491 Sean Aylmer: Ah, yes. 292 00:16:12,059 --> 00:16:14,460 Michael Thompson: But yeah, I can't bring myself to sharing my password, 293 00:16:14,460 --> 00:16:17,520 Michael Thompson: unless I buy the family box, because I know Netflix is 294 00:16:17,640 --> 00:16:19,770 Michael Thompson: a massive company, but I don't mind that. I don't 295 00:16:19,770 --> 00:16:20,880 Michael Thompson: mind paying extra for that. 296 00:16:22,349 --> 00:16:22,981 Sean Aylmer: On my own there, Michael. 297 00:16:22,981 --> 00:16:25,440 Michael Thompson: No, no, no, no. It's fine. It's fine. It just 298 00:16:25,440 --> 00:16:27,540 Michael Thompson: feels like you're kind of putting me in a corner 299 00:16:27,540 --> 00:16:32,340 Michael Thompson: here, Sean. Let's move on, Tesla. We mentioned Elon Musk. 300 00:16:32,520 --> 00:16:34,051 Michael Thompson: He gets a few mentions today, doesn't he? 301 00:16:34,051 --> 00:16:35,520 Sean Aylmer: Yeah, he does. Yeah, as always. 302 00:16:35,790 --> 00:16:39,959 Michael Thompson: Yeah, they're investing more than $ 1 billion on a supercomputer 303 00:16:40,650 --> 00:16:44,670 Michael Thompson: known as Project Dojo as the company pushes to create 304 00:16:44,670 --> 00:16:46,109 Michael Thompson: autonomous driving software. 305 00:16:46,949 --> 00:16:50,430 Sean Aylmer: Elon Musk said this supercomputer is being designed to handle 306 00:16:50,430 --> 00:16:54,870 Sean Aylmer: massive amounts of data, including video from Tesla cars. He 307 00:16:54,870 --> 00:16:57,660 Sean Aylmer: said the auto company has a staggering amount of video 308 00:16:57,840 --> 00:17:01,620 Sean Aylmer: at its disposal, thanks to customers' use of camera- based 309 00:17:01,620 --> 00:17:06,540 Sean Aylmer: driver assistance software called Autopilot. The announcement came as Tesla 310 00:17:06,540 --> 00:17:10,590 Sean Aylmer: said profitability shrank during the June quarter. Musk then also 311 00:17:10,590 --> 00:17:13,859 Sean Aylmer: said the company will probably keep cutting prices of electric 312 00:17:13,859 --> 00:17:17,670 Sean Aylmer: vehicles if interest rates continue to rise. Tesla's on- track 313 00:17:17,670 --> 00:17:20,790 Sean Aylmer: to build 1. 8 million vehicles this year, Michael. Not bad. 314 00:17:21,210 --> 00:17:22,560 Michael Thompson: That's quite impressive. 315 00:17:22,680 --> 00:17:23,880 Sean Aylmer: Hmm, very impressive. 316 00:17:24,388 --> 00:17:26,458 Michael Thompson: Not that I suspect Elon Musk really cares what I 317 00:17:26,460 --> 00:17:31,650 Michael Thompson: think. Up next, Sean, Ed John, executive manager stewardship at 318 00:17:31,650 --> 00:17:35,280 Michael Thompson: ACSI, the Australian Council of Superannuation Investors. 319 00:17:35,700 --> 00:17:39,839 Sean Aylmer: All about CEO pay, a very controversial topic, well worth 320 00:17:39,839 --> 00:17:40,198 Sean Aylmer: a listen. 321 00:17:40,440 --> 00:17:42,300 Michael Thompson: Yeah, absolutely. It's up next in the Fear and Greed 322 00:17:42,359 --> 00:17:46,379 Michael Thompson: playlist on your podcast platform or at fearandgreed.com.au. Make sure 323 00:17:46,380 --> 00:17:49,860 Michael Thompson: as well that you listen tomorrow for the weekend edition, 324 00:17:50,099 --> 00:17:52,980 Michael Thompson: which is a very different program to our weekday shows. 325 00:17:52,980 --> 00:17:55,500 Michael Thompson: It's where you and I really go head- to- head 326 00:17:55,500 --> 00:17:57,780 Michael Thompson: to pick the bigger story of the week and sleeper 327 00:17:57,780 --> 00:18:00,418 Michael Thompson: stories. There's a lot of argy- bargy and we rope 328 00:18:00,450 --> 00:18:02,939 Michael Thompson: our Fear and Greed colleague Adam Lang in to be 329 00:18:03,420 --> 00:18:06,180 Michael Thompson: a fair and unbiased judge. 330 00:18:07,290 --> 00:18:10,260 Sean Aylmer: I was talking to a gentleman yesterday, who was very 331 00:18:10,260 --> 00:18:13,109 Sean Aylmer: senior consultant, and I was doing some other work, and 332 00:18:13,109 --> 00:18:16,920 Sean Aylmer: he said, " Sean, I like the weekend edition." I kind 333 00:18:16,920 --> 00:18:18,448 Sean Aylmer: of took a backwards step because I always think the 334 00:18:18,450 --> 00:18:21,629 Sean Aylmer: weekend edition can get a little silly, and he said, " You 335 00:18:21,630 --> 00:18:24,000 Sean Aylmer: know, if I'm doing exercise, I just catch up on 336 00:18:24,000 --> 00:18:25,770 Sean Aylmer: the week and I listen to you to carry on 337 00:18:25,770 --> 00:18:28,440 Sean Aylmer: and it's great fun." I take that as a great 338 00:18:28,440 --> 00:18:32,010 Sean Aylmer: compliment that someone as senior as this gentleman likes the 339 00:18:32,130 --> 00:18:32,940 Sean Aylmer: weekend edition. 340 00:18:33,179 --> 00:18:35,158 Michael Thompson: Yeah, I don't like the fact that he says that 341 00:18:35,160 --> 00:18:38,280 Michael Thompson: we carry on. For me, I'm treating it very seriously. 342 00:18:38,280 --> 00:18:40,110 Michael Thompson: It's a competition that I want to win. 343 00:18:41,550 --> 00:18:43,500 Sean Aylmer: There's no carry on as far as we're concerned. 344 00:18:43,650 --> 00:18:45,448 Michael Thompson: No, no, no, no, no. I'm sorry if that's the 345 00:18:45,450 --> 00:18:47,668 Michael Thompson: way that he perceives it. Anyway, we hope to put 346 00:18:47,670 --> 00:18:49,380 Michael Thompson: on a good show for him tomorrow, so make sure 347 00:18:49,380 --> 00:18:51,869 Michael Thompson: you hit Follow and Subscribe to the podcast so that 348 00:18:51,869 --> 00:18:54,750 Michael Thompson: it just lands automatically in your playlist. Thank you very 349 00:18:54,750 --> 00:18:55,260 Michael Thompson: much, Sean. 350 00:18:55,560 --> 00:18:56,310 Sean Aylmer: Thank you, Michael. 351 00:18:56,520 --> 00:19:00,030 Michael Thompson: It's Friday, the 21st of July 2023, as I mentioned. 352 00:19:00,030 --> 00:19:02,158 Michael Thompson: Make sure you're following the podcast and also join us 353 00:19:02,160 --> 00:19:06,569 Michael Thompson: online. You'll find us on LinkedIn and Instagram, Twitter and Facebook. I'm 354 00:19:06,570 --> 00:19:09,150 Michael Thompson: Michael Thompson and that was Fear and Greed Business News. 355 00:19:09,240 --> 00:19:09,929 Michael Thompson: Have a great day.