1 00:00:03,930 --> 00:00:09,599 Michael Thompson: Record sales of new cars in Australia as electric vehicle purchases soar. The value 2 00:00:09,599 --> 00:00:14,460 Michael Thompson: of smartphone transactions jumps 50 times over five years, and 3 00:00:14,460 --> 00:00:18,029 Michael Thompson: Treasurer Jim Chalmers hints at more action over the PwC 4 00:00:18,029 --> 00:00:22,440 Michael Thompson: scandal. It's Tuesday, the 6th of June 2023. Welcome to 5 00:00:22,440 --> 00:00:26,309 Michael Thompson: Fear & Greed, Australia's most popular business podcast. I'm Michael Thompson, 6 00:00:26,309 --> 00:00:27,840 Michael Thompson: and good morning, Sean Aylmer. 7 00:00:28,139 --> 00:00:29,250 Sean Aylmer: Good morning, Michael. 8 00:00:29,790 --> 00:00:32,400 Michael Thompson: Sean, after the show, you've got an interview coming up 9 00:00:32,700 --> 00:00:36,059 Michael Thompson: with Dr. Kim Horton, who is the Chief Economist at 10 00:00:36,059 --> 00:00:37,949 Michael Thompson: the Regional Australia Institute. 11 00:00:38,190 --> 00:00:40,470 Sean Aylmer: Yep, it's a great interview. All about why people are 12 00:00:40,470 --> 00:00:42,930 Sean Aylmer: moving from cities to the regions and from the regions 13 00:00:42,930 --> 00:00:46,110 Sean Aylmer: back to the city. It really shows how mobile Australians 14 00:00:46,110 --> 00:00:47,250 Sean Aylmer: are becoming, and if you look at some of the 15 00:00:47,250 --> 00:00:49,440 Sean Aylmer: great economies in the world, the US being the obvious 16 00:00:49,440 --> 00:00:54,359 Sean Aylmer: example, people shift around countries very easily. In Australia, we 17 00:00:54,360 --> 00:00:56,790 Sean Aylmer: don't do that. Most people are either along the Eastern 18 00:00:56,790 --> 00:00:59,910 Sean Aylmer: seaboard or a little bit of the Western seaboard, but 19 00:00:59,910 --> 00:01:02,880 Sean Aylmer: we are actually becoming a lot more mobile. It's a really fascinating chat. 20 00:01:03,330 --> 00:01:04,679 Michael Thompson: Yeah, it's a good one. It's coming up a little 21 00:01:04,679 --> 00:01:07,170 Michael Thompson: bit later on. The main story this morning though, Sean, 22 00:01:07,259 --> 00:01:10,350 Michael Thompson: new car sales hit a record high last month, with 23 00:01:10,350 --> 00:01:16,380 Michael Thompson: sales of EVs surging, making the Tesla Model Y the third- highest- 24 00:01:16,440 --> 00:01:18,600 Michael Thompson: selling vehicle in the country. 25 00:01:19,110 --> 00:01:24,030 Sean Aylmer: Sales across the nation jumped 12% in May, to 105, 26 00:01:24,270 --> 00:01:29,580 Sean Aylmer: 694 units. That is a record, in fact, it's 2.7% higher 27 00:01:29,969 --> 00:01:34,000 Sean Aylmer: than the previous record month, back in May 2017. While 28 00:01:34,110 --> 00:01:38,160 Sean Aylmer: the (inaudible) friend, the Mighty Ute, remains the highest- 29 00:01:38,220 --> 00:01:41,999 Sean Aylmer: selling car or car type, at least, the growth in 30 00:01:42,000 --> 00:01:46,319 Sean Aylmer: electric vehicle sales is quite remarkable. Battery- powered vehicles represented 31 00:01:46,319 --> 00:01:50,580 Sean Aylmer: 7.7% of sales in May. If you throw hybrids in 32 00:01:50,580 --> 00:01:55,380 Sean Aylmer: there, it's about 15.6% of sales, and Tesla is well 33 00:01:55,380 --> 00:01:58,080 Sean Aylmer: and truly leading the way as the biggest- selling EV 34 00:01:58,080 --> 00:02:02,159 Sean Aylmer: manufacturer. The Federal Chamber of Automotive Industries yesterday said that 35 00:02:02,160 --> 00:02:06,090 Sean Aylmer: for the first five months of calendar 2023, new vehicle 36 00:02:06,090 --> 00:02:13,019 Sean Aylmer: sales were up 4.3%, close enough to 457, 000 units. 37 00:02:13,350 --> 00:02:15,959 Michael Thompson: That's a lot, Sean. What's the main reason? Is it 38 00:02:15,960 --> 00:02:18,030 Michael Thompson: just the loosening of supply chains? 39 00:02:18,240 --> 00:02:21,630 Sean Aylmer: Primarily, that's the case. Global production levels have been ramping 40 00:02:21,630 --> 00:02:26,130 Sean Aylmer: up as the semiconductor shortage eases and back order books 41 00:02:26,190 --> 00:02:28,169 Sean Aylmer: diminished. Now, a big part of the reason for the 42 00:02:28,169 --> 00:02:31,830 Sean Aylmer: surge last month, is many vehicles were actually ordered last 43 00:02:31,830 --> 00:02:35,548 Sean Aylmer: year, but they're only delivered in May. The Federal Chamber 44 00:02:35,550 --> 00:02:39,179 Sean Aylmer: of Automotive Industries Chief Executive Tony Weber, said the result 45 00:02:39,179 --> 00:02:42,420 Sean Aylmer: is encouraging, though, given the logistical challenges over the past 46 00:02:42,450 --> 00:02:45,480 Sean Aylmer: 12 months, though he did warn that supply chain challenges 47 00:02:45,510 --> 00:02:48,990 Sean Aylmer: aren't over yet. What's really promising is that there's a 48 00:02:48,990 --> 00:02:54,570 Sean Aylmer: jump in all buyer market segments. Private, business, government, and 49 00:02:54,570 --> 00:02:57,480 Sean Aylmer: rental. In terms of the big sellers, Michael, the Toyota 50 00:02:57,480 --> 00:03:00,059 Sean Aylmer: Hilux and Ford Ranger were one and two, as per 51 00:03:00,059 --> 00:03:04,380 Sean Aylmer: usual, though in April, at least, Ford Ranger beat Toyota 52 00:03:04,380 --> 00:03:07,230 Sean Aylmer: Hilux. They flipped around this time around. Tesla Model Y 53 00:03:07,230 --> 00:03:10,889 Sean Aylmer: came in at number three, selling 3, 178 units, the 54 00:03:10,889 --> 00:03:15,090 Sean Aylmer: Toyota RAV4 came in at four, and then the MG ZS. 55 00:03:15,090 --> 00:03:19,829 Michael Thompson: I know you love speculating on things, Sean. What would it take for EVs 56 00:03:20,940 --> 00:03:22,860 Michael Thompson: to kind of move further up? Because I know there'd 57 00:03:22,860 --> 00:03:25,440 Michael Thompson: be a bit of a margin between two and three 58 00:03:25,440 --> 00:03:29,519 Michael Thompson: there. Is it mandated purchases from government fleets, that kind 59 00:03:29,520 --> 00:03:29,820 Michael Thompson: of thing? 60 00:03:30,419 --> 00:03:35,009 Sean Aylmer: Yeah, I wonder that. Well, that would certainly help hugely. I think 61 00:03:35,100 --> 00:03:38,820 Sean Aylmer: a lot of buyer resistance remains around the fact that 62 00:03:38,820 --> 00:03:41,040 Sean Aylmer: you've got to charge them. And so, if you had 63 00:03:41,040 --> 00:03:45,840 Sean Aylmer: a much quicker way of charging and much easier service 64 00:03:45,840 --> 00:03:47,670 Sean Aylmer: stations were offering it, and you could do it in 65 00:03:47,670 --> 00:03:50,339 Sean Aylmer: two or three minutes or four or five minutes, that's 66 00:03:50,490 --> 00:03:52,950 Sean Aylmer: the Holy Grail. And so, when you talk to EV 67 00:03:53,070 --> 00:03:56,640 Sean Aylmer: manufacturers, they say, " If we could get some service stations 68 00:03:56,640 --> 00:03:58,860 Sean Aylmer: to charge a car in three or four minutes, the 69 00:03:58,860 --> 00:04:01,770 Sean Aylmer: equivalent of petrol or diesel, then everyone would be buying 70 00:04:01,770 --> 00:04:04,469 Sean Aylmer: it." I think that's probably the Holy Grail. Of course, 71 00:04:04,469 --> 00:04:06,599 Sean Aylmer: if you mandate, like the US has, you're going to 72 00:04:06,599 --> 00:04:08,670 Sean Aylmer: end up with a lot more vehicles on the road. 73 00:04:09,240 --> 00:04:12,180 Michael Thompson: Yeah, all right. Local markets, How did they perform yesterday? 74 00:04:12,480 --> 00:04:16,770 Sean Aylmer: S&P added 6, 200 closed up 1%, pretty strong day finishing at 7, 75 00:04:16,770 --> 00:04:22,018 Sean Aylmer: 216 points. Consumer discretionary stocks did best, followed by the 76 00:04:22,020 --> 00:04:25,530 Sean Aylmer: materials companies and healthcare companies. Worst were the tech stocks 77 00:04:25,889 --> 00:04:29,189 Sean Aylmer: and all prices jumped yesterday, helping the big miners, BHP 78 00:04:29,190 --> 00:04:34,770 Sean Aylmer: closed up 1. 7%, Fortescue Metal spiked 3.6%, and Rio 79 00:04:34,770 --> 00:04:37,470 Sean Aylmer: was 1. 3% higher. West Farmers had a good day 80 00:04:37,470 --> 00:04:41,070 Sean Aylmer: rising 2%, while the big banks were led by ANZ, 81 00:04:41,428 --> 00:04:44,940 Sean Aylmer: which raised more than 1. 5%. The laggards included the Gold 82 00:04:44,940 --> 00:04:48,510 Sean Aylmer: Miners, new Creston Northern Star and tech leaders, YC Global 83 00:04:48,510 --> 00:04:51,839 Sean Aylmer: and zero. Just a quick mention in corporate news, my 84 00:04:51,839 --> 00:04:54,180 Sean Aylmer: chief executive John King will step down in the second 85 00:04:54,180 --> 00:04:56,789 Sean Aylmer: half of next year, to return to the US, after 86 00:04:56,790 --> 00:04:59,370 Sean Aylmer: more than six years in the top job. He really has 87 00:04:59,370 --> 00:05:02,639 Sean Aylmer: led a major turnaround of the department store chain. It 88 00:05:02,639 --> 00:05:04,799 Sean Aylmer: is doing much, much better than it was before he 89 00:05:04,799 --> 00:05:05,820 Sean Aylmer: arrived, so good on him. 90 00:05:06,240 --> 00:05:08,039 Michael Thompson: That's not a bad legacy to leave, is it? To 91 00:05:08,040 --> 00:05:10,800 Michael Thompson: actually come in and turn something around that really looked 92 00:05:10,800 --> 00:05:13,260 Michael Thompson: like it was kind of heading out. 93 00:05:13,290 --> 00:05:14,488 Sean Aylmer: Looked like a basket case. 94 00:05:14,580 --> 00:05:15,419 Michael Thompson: Yeah, it really did. 95 00:05:15,960 --> 00:05:17,399 Michael Thompson: I was trying to dress that up a bit, but 96 00:05:17,400 --> 00:05:19,979 Michael Thompson: really it was not looking good for Meyer, was it? 97 00:05:20,099 --> 00:05:22,139 Sean Aylmer: No. At one point there, a few years back, it 98 00:05:22,139 --> 00:05:22,950 Sean Aylmer: was looking awful. 99 00:05:23,400 --> 00:05:25,440 Michael Thompson: International markets, there's a bit going on, Sean. 100 00:05:25,650 --> 00:05:29,250 Sean Aylmer: Sure is, Michael. Saudi Arabia will reduce how much oil 101 00:05:29,250 --> 00:05:32,070 Sean Aylmer: it sends to the global economy, triggering a jump in 102 00:05:32,070 --> 00:05:36,120 Sean Aylmer: the price of Brent Crude. Saudi will cut production by 103 00:05:36,150 --> 00:05:39,928 Sean Aylmer: 1 million barrels a day from next month, the rest 104 00:05:39,928 --> 00:05:43,049 Sean Aylmer: of the OPEC plus producers agree to extend earlier production 105 00:05:43,049 --> 00:05:48,990 Sean Aylmer: cuts through to the end of 2024. Not surprisingly, oil prices jumped sharply. Bad 106 00:05:48,990 --> 00:05:52,020 Sean Aylmer: news at the petrol bowser, just when (inaudible) ... I 107 00:05:52,020 --> 00:05:54,928 Sean Aylmer: try and get my head around 1 million barrels of 108 00:05:54,928 --> 00:05:59,489 Sean Aylmer: oil a day. That's reducing it, by that much. 109 00:05:59,789 --> 00:06:00,058 Michael Thompson: Yeah. 110 00:06:00,150 --> 00:06:02,849 Sean Aylmer: It's a huge sum and they have to transport that 111 00:06:02,850 --> 00:06:06,089 Sean Aylmer: around the world too. It's quite remarkable, I always get 112 00:06:06,240 --> 00:06:09,120 Sean Aylmer: blown away by that. Anyway, I also, Michael mentioned higher 113 00:06:09,120 --> 00:06:11,428 Sean Aylmer: or own or prices earlier on, that's because there are 114 00:06:11,428 --> 00:06:14,549 Sean Aylmer: media reports that Beijing is working on boosting the property 115 00:06:14,549 --> 00:06:17,219 Sean Aylmer: sector in China, which is a very significant part of 116 00:06:17,219 --> 00:06:19,740 Sean Aylmer: the overall economy, and it's actually one of the real 117 00:06:19,890 --> 00:06:23,339 Sean Aylmer: problems in China. It's a key hurdle to stronger growth. 118 00:06:23,520 --> 00:06:27,840 Sean Aylmer: If China does well, then that will obviously help Australian 119 00:06:27,900 --> 00:06:30,419 Sean Aylmer: iron ore exporters. (inaudible) , that's why the share prices 120 00:06:30,420 --> 00:06:34,770 Sean Aylmer: of Fortescue, Rio, and PHP went up yesterday. Finally, in 121 00:06:34,770 --> 00:06:38,760 Sean Aylmer: international markets, the Aussie dollar is back below 66 US cents. 122 00:06:39,000 --> 00:06:40,618 Michael Thompson: All right. We'll be back in a moment with the 123 00:06:40,620 --> 00:06:49,500 Michael Thompson: rest of the day's business news. Sean, the value of 124 00:06:49,500 --> 00:06:54,750 Michael Thompson: transactions using cards on smartphones has risen from $ 746 million 125 00:06:55,080 --> 00:06:59,520 Michael Thompson: in 2018, to more than $ 93 billion with a B, 126 00:06:59,550 --> 00:07:04,560 Michael Thompson: billion in 2022, this is according to Australian Banker's Association research. 127 00:07:05,099 --> 00:07:08,428 Sean Aylmer: The number of cards registered to mobile wallets has gone 128 00:07:08,428 --> 00:07:13,140 Sean Aylmer: from just over 2 million to 15. 3 million. The 129 00:07:13,140 --> 00:07:17,100 Sean Aylmer: research we published by the Australian Banking Association, tomorrow, according 130 00:07:17,100 --> 00:07:19,530 Sean Aylmer: to a report on the financial review, the numbers are 131 00:07:19,530 --> 00:07:23,939 Sean Aylmer: staggering. As you say, $ 93 billion in 2022. Cash now 132 00:07:24,270 --> 00:07:28,529 Sean Aylmer: represents just 6% of the point of sale transactions in 133 00:07:28,529 --> 00:07:33,270 Sean Aylmer: Australia. It's predicted to go down to 2% by 2025, and 134 00:07:33,540 --> 00:07:37,020 Sean Aylmer: it is very much this mobile wallet that's taken over. 135 00:07:37,320 --> 00:07:42,120 Michael Thompson: Can you give my barber a call, Sean? Because they 136 00:07:42,690 --> 00:07:46,740 Michael Thompson: are stubbornly cash only, and it is the only shop 137 00:07:46,740 --> 00:07:50,280 Michael Thompson: I go into, at any point, ever, where I'm required 138 00:07:50,280 --> 00:07:54,660 Michael Thompson: to use cash. Otherwise, I never pick up my wallet, 139 00:07:54,660 --> 00:07:57,150 Michael Thompson: never use my card or anything, except for when I 140 00:07:57,150 --> 00:07:59,340 Michael Thompson: have to go to the ATM to get cash out now, 141 00:07:59,429 --> 00:08:01,649 Michael Thompson: to get my haircut. I had that yesterday, so this 142 00:08:01,650 --> 00:08:03,150 Michael Thompson: is very, very fresh for me right now. 143 00:08:03,540 --> 00:08:05,940 Sean Aylmer: Well, firstly, I'm impressed that you go to a barber to get 144 00:08:05,940 --> 00:08:07,710 Sean Aylmer: your haircut. That's what will start. 145 00:08:07,980 --> 00:08:08,880 Michael Thompson: What were you expecting? 146 00:08:09,030 --> 00:08:13,560 Sean Aylmer: A hairdresser for you, Michael. I've seen you. You've got 147 00:08:13,560 --> 00:08:16,619 Sean Aylmer: a very good barber. Yes, but I agree. There are 148 00:08:16,620 --> 00:08:19,770 Sean Aylmer: so many places that just don't take cash anymore, and 149 00:08:19,770 --> 00:08:23,219 Sean Aylmer: this has actually become a really big issue, particularly among 150 00:08:23,219 --> 00:08:28,440 Sean Aylmer: the large banks. Basically, Matt Common, the Commonwealth Bank boss 151 00:08:28,740 --> 00:08:30,990 Sean Aylmer: has come out and said the figures demonstrate that Apple 152 00:08:30,990 --> 00:08:33,990 Sean Aylmer: has enormous market power, both by its sheer size and 153 00:08:33,990 --> 00:08:37,740 Sean Aylmer: scale, market capitalization, biggest company in the world, and customer 154 00:08:37,830 --> 00:08:41,849 Sean Aylmer: relationships. Commonwealth Bank wants its banking app to be able 155 00:08:41,850 --> 00:08:44,968 Sean Aylmer: to use iPhones to make tap and go payments on 156 00:08:44,970 --> 00:08:48,510 Sean Aylmer: much better terms than Apple currently offers. Now, the ACCC 157 00:08:48,510 --> 00:08:51,750 Sean Aylmer: is investigating if Apple's practice of restricting third party access 158 00:08:51,750 --> 00:08:55,679 Sean Aylmer: to what they call the Near Field Communication technology and the terms 159 00:08:55,679 --> 00:08:58,319 Sean Aylmer: it imposes for use of Apple Pay by third parties 160 00:08:58,440 --> 00:09:02,370 Sean Aylmer: raises concerns under competition. Apple reckons that banks and other 161 00:09:02,370 --> 00:09:05,880 Sean Aylmer: companies can access the Near Field Communication functionality from their 162 00:09:05,880 --> 00:09:12,299 Sean Aylmer: own apps, via Apple's programming interfaces. But, Matt Common and 163 00:09:12,300 --> 00:09:16,289 Sean Aylmer: others believe Apple makes it too restrictive. It's going to 164 00:09:16,289 --> 00:09:19,319 Sean Aylmer: be a kind of big issue going forward. It's been 165 00:09:19,320 --> 00:09:21,900 Sean Aylmer: around for a while, so it's not new, but just 166 00:09:21,900 --> 00:09:25,890 Sean Aylmer: when you see the value of transactions, as you say, $ 93 167 00:09:25,890 --> 00:09:30,899 Sean Aylmer: billion going through the phone, it's obviously a very, very 168 00:09:31,259 --> 00:09:32,640 Sean Aylmer: big challenge for the banks. 169 00:09:33,089 --> 00:09:35,490 Michael Thompson: So, long story short, there's no reason why my barber 170 00:09:35,490 --> 00:09:38,790 Michael Thompson: should not be using tap and go. 171 00:09:39,360 --> 00:09:43,200 Sean Aylmer: In fact, Westpac introduced this functionality about two weeks ago, 172 00:09:43,890 --> 00:09:46,320 Sean Aylmer: where I don't think the other majors have done it, 173 00:09:46,559 --> 00:09:51,749 Sean Aylmer: but you can actually use a mobile phone as your 174 00:09:51,839 --> 00:09:53,248 Sean Aylmer: payments terminal. 175 00:09:53,760 --> 00:09:54,449 Michael Thompson: Oh, really? 176 00:09:54,449 --> 00:09:58,650 Sean Aylmer: So, if you are a small business and Westpac is 177 00:09:58,650 --> 00:10:03,030 Sean Aylmer: your bank, you can download an app. And so, when 178 00:10:03,030 --> 00:10:05,969 Sean Aylmer: Michael Thompson comes in for a haircut, you just use 179 00:10:05,969 --> 00:10:08,370 Sean Aylmer: your own mobile phone and that's actually your payments terminal. 180 00:10:08,370 --> 00:10:10,799 Sean Aylmer: It's quite spectacular that you don't even need one of 181 00:10:10,799 --> 00:10:13,588 Sean Aylmer: those little squares, or anything like that now. It's pretty cool. 182 00:10:13,740 --> 00:10:14,939 Michael Thompson: God, it can't get much easier than that, can it? 183 00:10:14,940 --> 00:10:18,240 Sean Aylmer: No, I don't think so. How we digress. 184 00:10:18,300 --> 00:10:20,819 Michael Thompson: We do. We do. But yes, my hair looks very 185 00:10:20,820 --> 00:10:24,089 Michael Thompson: good today. Thank you. All right, moving on, Sean, ahead 186 00:10:24,090 --> 00:10:26,940 Michael Thompson: of today's decision by the Reserve Bank Board on interest 187 00:10:26,940 --> 00:10:31,320 Michael Thompson: rates, ratings agency, S& P Global has warned that mortgage 188 00:10:31,350 --> 00:10:35,700 Michael Thompson: arrears in Australia are climbing and financial stress is escalating. 189 00:10:36,120 --> 00:10:39,030 Sean Aylmer: The stress is appearing among both prime mortgages and non- 190 00:10:39,030 --> 00:10:43,020 Sean Aylmer: conforming securities. So, basically, that means across the spectrum of 191 00:10:43,020 --> 00:10:47,159 Sean Aylmer: home loans, S& P blamed rising interest rates and cost 192 00:10:47,160 --> 00:10:50,220 Sean Aylmer: of living pressures and said things will get worse later, 193 00:10:50,220 --> 00:10:52,708 Sean Aylmer: in the year. Now, the ratings agency also named some 194 00:10:52,710 --> 00:10:56,430 Sean Aylmer: of the hardest hit areas, the worst hotspot for arrears, 195 00:10:56,460 --> 00:10:59,010 Sean Aylmer: that's people who haven't been able to keep up with 196 00:10:59,010 --> 00:11:02,520 Sean Aylmer: home loan repayments is in the Blue Mountains, in New 197 00:11:02,520 --> 00:11:06,720 Sean Aylmer: South Wales, in the suburb of Katoomba, where 5. 6% 198 00:11:07,260 --> 00:11:12,328 Sean Aylmer: of loans is in Arris. Other suburbs heavily in Arris in New 199 00:11:12,330 --> 00:11:16,499 Sean Aylmer: South Wales, including (inaudible) in the southern highland suburb 200 00:11:16,590 --> 00:11:21,120 Sean Aylmer: of Alpine, Forestfield in Western Australia also makes the list, 201 00:11:21,120 --> 00:11:25,530 Sean Aylmer: as does Avoca Dell in South Australia, Barkley in Queensland, 202 00:11:25,920 --> 00:11:28,680 Sean Aylmer: and Broadmeadows in West Melbourne, in Victoria. 203 00:11:29,700 --> 00:11:33,780 Michael Thompson: Sean, the full judgment of Ben Robert Smith defamation case 204 00:11:33,780 --> 00:11:36,690 Michael Thompson: has been released four days after the result was delivered 205 00:11:36,690 --> 00:11:37,170 Michael Thompson: in court. 206 00:11:37,740 --> 00:11:41,400 Sean Aylmer: Yes, Justice Anthony Besanko had only provided a summary judgment 207 00:11:41,400 --> 00:11:43,650 Sean Aylmer: last week, due to a last minute request from the 208 00:11:43,650 --> 00:11:46,890 Sean Aylmer: Commonwealth to inspect the full judgment before his public release. 209 00:11:47,250 --> 00:11:51,210 Sean Aylmer: Now, the full judgment is 736 pages long, in it, 210 00:11:51,420 --> 00:11:55,590 Sean Aylmer: Justice Besanko writes that Ben Robert Smith and various witnesses 211 00:11:55,590 --> 00:12:00,569 Sean Aylmer: he called, were not honest or reliable. Last week, Justice 212 00:12:00,570 --> 00:12:03,750 Sean Aylmer: Besanko found that nine newspapers, the Age, the Sydney Morning 213 00:12:03,750 --> 00:12:06,809 Sean Aylmer: Herald and the Canberra Times had proven that Robert Smith 214 00:12:06,900 --> 00:12:10,350 Sean Aylmer: unlawfully killed four unarmed Afghan prisoners. 215 00:12:11,160 --> 00:12:14,910 Michael Thompson: Sean, the Australian Financial Review, held its annual ESG summit 216 00:12:14,910 --> 00:12:17,729 Michael Thompson: yesterday. There were plenty of business leaders in attendance, and 217 00:12:17,730 --> 00:12:20,610 Michael Thompson: one of the more interesting discussions came from ASIC Chairman 218 00:12:20,610 --> 00:12:23,550 Michael Thompson: Joe Longo, who said the regulator has a bunch of 219 00:12:23,550 --> 00:12:27,420 Michael Thompson: concerns that keep cropping up in greenwashing claims. 220 00:12:27,660 --> 00:12:31,920 Sean Aylmer: Yeah, so greenwashing is essentially an unsubstantiated claim aimed to 221 00:12:31,920 --> 00:12:35,279 Sean Aylmer: deceive investors or customers, into believing a company or its 222 00:12:35,279 --> 00:12:41,400 Sean Aylmer: products are environmentally friendly, spin, shall we say, spin. Now, 223 00:12:41,400 --> 00:12:44,309 Sean Aylmer: Longo isn't happy with companies that make NetZero statements and 224 00:12:44,309 --> 00:12:48,270 Sean Aylmer: targets without a reasonable basis that they're factually correct. Fair 225 00:12:48,270 --> 00:12:51,509 Sean Aylmer: enough. He isn't a fan of companies using terms like carbon- 226 00:12:51,509 --> 00:12:55,230 Sean Aylmer: neutral, clean or green when they're not founded on reasonable 227 00:12:55,260 --> 00:12:58,110 Sean Aylmer: grounds. I think that's fair enough too. And, he doesn't 228 00:12:58,110 --> 00:13:02,940 Sean Aylmer: like the overstatement or inconsistent application of sustainability related investment 229 00:13:03,030 --> 00:13:07,980 Sean Aylmer: screens. Longo also warned companies against inaccurate labeling or vague 230 00:13:07,980 --> 00:13:12,059 Sean Aylmer: terms in sustainability related funds. We are hearing a lot 231 00:13:12,059 --> 00:13:16,770 Sean Aylmer: more about greenwashing from ASIC recently, and given that so 232 00:13:16,770 --> 00:13:20,429 Sean Aylmer: many companies talk up their green credentials and the hope 233 00:13:20,429 --> 00:13:22,770 Sean Aylmer: that investors will invest with them, I think we're going 234 00:13:22,770 --> 00:13:24,660 Sean Aylmer: to hear a lot more about it in the future. 235 00:13:25,020 --> 00:13:26,460 Michael Thompson: Now, I mentioned this one, Sean, at the top of 236 00:13:26,460 --> 00:13:30,419 Michael Thompson: the show, Treasurer Jim Charmers, says the federal government hasn't 237 00:13:30,420 --> 00:13:33,660 Michael Thompson: ruled out taking further steps in response to what he 238 00:13:33,660 --> 00:13:38,250 Michael Thompson: called the appalling tax leak scandal engulfing PwC Australia. 239 00:13:38,670 --> 00:13:42,120 Sean Aylmer: Just keeps getting worse for the embattled professional services firm. 240 00:13:42,719 --> 00:13:45,719 Sean Aylmer: We had charmers yesterday. We also had ASIC saying it's 241 00:13:45,719 --> 00:13:50,040 Sean Aylmer: reviewing all its contracts with PwC Australia, now Joe Longo, 242 00:13:50,040 --> 00:13:52,470 Sean Aylmer: the chair who we were just talking about, said it's vital 243 00:13:52,470 --> 00:13:56,490 Sean Aylmer: that PwC's held to account over the ongoing tax leaks 244 00:13:56,550 --> 00:14:00,600 Sean Aylmer: scandal. He also suggested that the consultancy steps towards accountability 245 00:14:00,719 --> 00:14:04,350 Sean Aylmer: so far, putting a bunch of partners on leave isn't 246 00:14:04,350 --> 00:14:08,790 Sean Aylmer: enough. Now, PwC has identified a list of 76 current 247 00:14:08,790 --> 00:14:12,780 Sean Aylmer: or former partners associated with the tax league scandal, and 248 00:14:12,780 --> 00:14:15,270 Sean Aylmer: given the names to a senate committee, it includes four 249 00:14:15,300 --> 00:14:19,620 Sean Aylmer: former partners involved in breaching confidentiality clauses, while doing work 250 00:14:19,620 --> 00:14:22,080 Sean Aylmer: for the federal government. Nine others who were placed on 251 00:14:22,080 --> 00:14:25,440 Sean Aylmer: leave last week, and 63 current or former staff, who 252 00:14:25,440 --> 00:14:29,310 Sean Aylmer: received at least one email containing confidential information. 253 00:14:29,910 --> 00:14:33,210 Michael Thompson: The boss of Elders, Mark Allison, has changed his mind 254 00:14:33,210 --> 00:14:36,270 Michael Thompson: and will stay at the agribusiness company extending his nine- 255 00:14:36,270 --> 00:14:37,169 Michael Thompson: year stage, Sean. 256 00:14:37,469 --> 00:14:40,920 Sean Aylmer: Apparently, a global search firm couldn't find an adequate replacement. 257 00:14:40,980 --> 00:14:46,860 Sean Aylmer: Now, Allison's new contract includes annual remuneration, 37% higher than 258 00:14:46,860 --> 00:14:50,400 Sean Aylmer: his current rate, retention payments if he stays around, and 259 00:14:50,400 --> 00:14:54,659 Sean Aylmer: potentially a bunch, a large bunch of free shares. Late 260 00:14:54,660 --> 00:14:57,330 Sean Aylmer: last year, Elder's share price tumbled 23% on the day 261 00:14:57,330 --> 00:14:59,759 Sean Aylmer: Allison announced he'll leave the business at the end of 262 00:14:59,820 --> 00:15:02,670 Sean Aylmer: this year. Now, he's done a U- turn, Elder's share 263 00:15:02,670 --> 00:15:06,600 Sean Aylmer: price rose 5% yesterday. Mind you, it's still about half 264 00:15:06,600 --> 00:15:09,630 Sean Aylmer: of what it was before Allison's initial announcement, thanks to 265 00:15:09,630 --> 00:15:11,639 Sean Aylmer: a drop in profit margins on the back of lower 266 00:15:11,639 --> 00:15:14,759 Sean Aylmer: cattle and cheap prices, and a slowdown in its chemicals 267 00:15:14,759 --> 00:15:18,000 Sean Aylmer: and fertilizer sales. Chair Ian Wilton, when asked why a 268 00:15:18,000 --> 00:15:22,440 Sean Aylmer: board director stepped down ahead of the announcement about Allison 269 00:15:22,440 --> 00:15:26,760 Sean Aylmer: staying, said, what happens in the boardroom stays in the 270 00:15:26,760 --> 00:15:29,580 Sean Aylmer: boardroom, which is a curious response. 271 00:15:29,670 --> 00:15:33,119 Michael Thompson: Oh, very mysterious. I like that. Sean, in one of 272 00:15:33,120 --> 00:15:37,110 Michael Thompson: the most incredible stories of the year, Kathleen Folbigg has 273 00:15:37,110 --> 00:15:40,590 Michael Thompson: been pardoned and will be released from prison after spending 274 00:15:40,590 --> 00:15:44,010 Michael Thompson: 20 years behind bars for the deaths of her four children. 275 00:15:44,490 --> 00:15:47,219 Sean Aylmer: A truly incredible story. After a seven- week trial in 276 00:15:47,219 --> 00:15:51,419 Sean Aylmer: 2003, a jury found Folbigg guilty of killing her four 277 00:15:51,420 --> 00:15:58,980 Sean Aylmer: babies, Caleb, Patrick, Sarah, and Laura, between 1989 and 1999. New 278 00:15:58,980 --> 00:16:03,599 Sean Aylmer: South Wales Attorney General Michael Daley yesterday said he'd recommended 279 00:16:03,599 --> 00:16:07,049 Sean Aylmer: she be pardoned after an inquiry into her convictions, heard 280 00:16:07,049 --> 00:16:10,830 Sean Aylmer: credible evidence that the children might have died of natural 281 00:16:10,830 --> 00:16:15,090 Sean Aylmer: causes. Thomas Bathurst, who led the inquiry into Folbigg's convictions, 282 00:16:15,420 --> 00:16:18,720 Sean Aylmer: said there's a reasonable possibility that three of the children 283 00:16:18,720 --> 00:16:21,570 Sean Aylmer: died of natural causes, and he was unable to accept 284 00:16:21,570 --> 00:16:25,469 Sean Aylmer: the proposition that Folbigg was anything but a caring mother for 285 00:16:25,469 --> 00:16:30,510 Sean Aylmer: her children. Folbigg has always maintained her innocence, rare genetic 286 00:16:30,510 --> 00:16:34,890 Sean Aylmer: variance identified in Folbigg, and her daughters, triggered a second 287 00:16:34,890 --> 00:16:40,020 Sean Aylmer: inquiry into her conviction not long after 2019 inquiry, resulted 288 00:16:40,020 --> 00:16:43,259 Sean Aylmer: in Folbigg remaining in jail. Anyway, today she's a free 289 00:16:43,259 --> 00:16:44,490 Sean Aylmer: woman and good luck to her. 290 00:16:45,299 --> 00:16:48,540 Michael Thompson: In international news now, Sean, the US Navy has released 291 00:16:48,540 --> 00:16:52,260 Michael Thompson: a video of what it called an unsafe interaction in 292 00:16:52,260 --> 00:16:57,030 Michael Thompson: the Taiwan Strait, in which a Chinese warship crossed in 293 00:16:57,030 --> 00:17:00,239 Michael Thompson: front of a US destroyer in the sensitive waterway. 294 00:17:00,690 --> 00:17:01,740 Sean Aylmer: Have you seen the video? 295 00:17:02,219 --> 00:17:05,639 Michael Thompson: I have. It's a little bit scary, actually. 296 00:17:05,670 --> 00:17:08,970 Sean Aylmer: It is. It's really scary because about 150 yards from 297 00:17:08,970 --> 00:17:12,869 Sean Aylmer: each other, these vessels. Now, the US military said the 298 00:17:12,869 --> 00:17:18,750 Sean Aylmer: USS Chung- Hoon, a destroyer, and Canada's HSMC Montreal, a 299 00:17:18,750 --> 00:17:22,650 Sean Aylmer: frigate, were conducting a routine transit of the strait over 300 00:17:22,650 --> 00:17:25,800 Sean Aylmer: the weekend, when the Chinese ship cut in front of 301 00:17:25,800 --> 00:17:28,680 Sean Aylmer: the US vessel. As I said, it's about 150 yards 302 00:17:28,680 --> 00:17:31,650 Sean Aylmer: away according to a report on Reuters. In the video 303 00:17:31,650 --> 00:17:35,490 Sean Aylmer: released by the US Navy, a Chinese warship can clearly 304 00:17:35,490 --> 00:17:38,369 Sean Aylmer: be seen sailing across the path of the Chung- Hoon 305 00:17:38,730 --> 00:17:40,978 Sean Aylmer: in calm waters. Now, a voice can be heard in 306 00:17:40,980 --> 00:17:43,680 Sean Aylmer: English, apparently sending a radio message to the Chinese ship, 307 00:17:43,950 --> 00:17:48,330 Sean Aylmer: warning against attempts to limit freedom of navigation. Though the 308 00:17:48,330 --> 00:17:52,770 Sean Aylmer: exact wording's unclear because of wind noise, China has not 309 00:17:52,770 --> 00:17:55,739 Sean Aylmer: commented directly on the US criticism of the encounter, but 310 00:17:55,740 --> 00:17:57,509 Sean Aylmer: a couple of days ago, or over the weekend at 311 00:17:57,509 --> 00:18:00,810 Sean Aylmer: least, they did rebuke the US and Canada for deliberately 312 00:18:00,810 --> 00:18:04,110 Sean Aylmer: provoking risk with the rare joint sailing. 313 00:18:05,160 --> 00:18:09,389 Michael Thompson: Finally, Sean, the world of flying is becoming more egalitarian, 314 00:18:09,540 --> 00:18:13,498 Michael Thompson: kind of, I suppose, with Qatar Airways set to scrap 315 00:18:13,500 --> 00:18:15,600 Michael Thompson: first class on long haul flights. 316 00:18:15,839 --> 00:18:18,510 Sean Aylmer: Very significant. I mean, Qatar is regularly voted the best 317 00:18:18,510 --> 00:18:22,050 Sean Aylmer: airline in the world. It's boss, Akbar al Baker says 318 00:18:22,050 --> 00:18:26,070 Sean Aylmer: the next generation long haul aircraft will top out at 319 00:18:26,070 --> 00:18:30,270 Sean Aylmer: business class, because first class, or at least the investment 320 00:18:30,540 --> 00:18:34,708 Sean Aylmer: in first class, doesn't justify the returns. Business class offers 321 00:18:34,709 --> 00:18:37,470 Sean Aylmer: many the same perks as first class, including double beds, 322 00:18:37,800 --> 00:18:38,790 Sean Aylmer: al Baker says- 323 00:18:38,820 --> 00:18:41,340 Michael Thompson: Hang on, hang on. Did you say double beds? 324 00:18:41,910 --> 00:18:42,300 Sean Aylmer: Yeah. 325 00:18:43,350 --> 00:18:43,859 Michael Thompson: Really? 326 00:18:44,670 --> 00:18:46,978 Sean Aylmer: So, you have seats next to each other, and then 327 00:18:46,980 --> 00:18:48,600 Sean Aylmer: they convert to a double bed. 328 00:18:49,410 --> 00:18:50,730 Michael Thompson: Oh, that seems high risk. 329 00:18:53,638 --> 00:18:57,300 Sean Aylmer: You know what's interesting? In the actual Qatar photo of 330 00:18:57,300 --> 00:19:02,698 Sean Aylmer: it, they have two women, 30 something year old women, 331 00:19:03,150 --> 00:19:06,330 Sean Aylmer: one is lying down in bed, one is sitting in 332 00:19:06,330 --> 00:19:09,719 Sean Aylmer: the bed, in the double bed. It's like, how do 333 00:19:09,719 --> 00:19:12,779 Sean Aylmer: you represent that without having someone like Michael Thompson saying, " 334 00:19:12,779 --> 00:19:13,650 Sean Aylmer: Well, that's high risk." 335 00:19:13,830 --> 00:19:15,030 Michael Thompson: Well, first of all, I want to know, do they 336 00:19:15,030 --> 00:19:17,609 Michael Thompson: know each other, or are these just passengers who are just 337 00:19:17,609 --> 00:19:18,629 Michael Thompson: randomly assigned? 338 00:19:20,638 --> 00:19:22,080 Sean Aylmer: Oh, that would make it fun, wouldn't it? 339 00:19:22,320 --> 00:19:25,950 Michael Thompson: Yeah. Goodness me. Sorry, I interrupted you and I shouldn't have. 340 00:19:27,509 --> 00:19:29,849 Sean Aylmer: Anyway, look, the point of this, al Baker says, people 341 00:19:29,850 --> 00:19:33,330 Sean Aylmer: don't buy first class when business is so good. According 342 00:19:33,330 --> 00:19:36,150 Sean Aylmer: to a story on Bloomberg, it pretty much runs against 343 00:19:36,150 --> 00:19:40,380 Sean Aylmer: the trend among global airlines. Germany's Lufthansa, Qantas, and Air 344 00:19:40,380 --> 00:19:43,559 Sean Aylmer: France are pushing their first class offerings. Al Baker also 345 00:19:43,559 --> 00:19:47,129 Sean Aylmer: said Qatar wants to expand its operations in Australia, both 346 00:19:47,129 --> 00:19:49,859 Sean Aylmer: for the airline and with its partner, Virgin Australia, it 347 00:19:49,859 --> 00:19:53,640 Sean Aylmer: wants to add extra daily services to Sydney, Perth, Melbourne, 348 00:19:53,700 --> 00:19:54,570 Sean Aylmer: and Brisbane. 349 00:19:54,900 --> 00:19:57,270 Michael Thompson: All right, up next is the Fear and Greed daily 350 00:19:57,270 --> 00:20:00,690 Michael Thompson: interview with Dr. Kim Horton, Chief Economist at the Regional 351 00:20:00,690 --> 00:20:01,740 Michael Thompson: Australia Institute. 352 00:20:02,070 --> 00:20:05,549 Sean Aylmer: All about mobility of labor, how Australians are moving from 353 00:20:05,549 --> 00:20:07,770 Sean Aylmer: the cities to the regions and back to the cities 354 00:20:07,770 --> 00:20:09,600 Sean Aylmer: in greater numbers than ever before. 355 00:20:09,900 --> 00:20:11,460 Michael Thompson: Yeah, it's a really good chat. It's coming up next 356 00:20:11,460 --> 00:20:13,888 Michael Thompson: in the Fear and Greed playlist on your podcast platform 357 00:20:14,190 --> 00:20:17,160 Michael Thompson: or at FearAndGreed. com. au. Thank you, Sean. 358 00:20:17,460 --> 00:20:18,209 Sean Aylmer: Thank you, Michael. 359 00:20:18,270 --> 00:20:21,478 Michael Thompson: It's Tuesday, the 6th of June 2023. Make sure you're 360 00:20:21,480 --> 00:20:25,259 Michael Thompson: following the podcast and join us online on LinkedIn, Instagram, 361 00:20:25,260 --> 00:20:27,600 Michael Thompson: Twitter, and Facebook, and stay up to date on all 362 00:20:27,600 --> 00:20:30,570 Michael Thompson: the business news with Alexa and your Amazon Echo Smart 363 00:20:30,570 --> 00:20:33,840 Michael Thompson: Speaker. Simply say, Alexa, " Play the Fear and Greed podcast," 364 00:20:33,840 --> 00:20:36,090 Michael Thompson: to catch the latest episode. You can get yours now 365 00:20:36,090 --> 00:20:39,418 Michael Thompson: at Amazon. com au. I'm Michael Thompson and that was 366 00:20:39,420 --> 00:20:41,190 Michael Thompson: Fear and Greed. Have a great day.