1 00:00:03,840 --> 00:00:07,000 Speaker 1: It's Wednesday, the twelfth of June twenty twenty four. Welcome 2 00:00:07,040 --> 00:00:09,479 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,480 --> 00:00:11,319 Speaker 1: where we give you the top five business stories you 4 00:00:11,400 --> 00:00:13,920 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:14,000 --> 00:00:15,440 Speaker 1: and good morning Sean Aylmer. 6 00:00:15,680 --> 00:00:17,360 Speaker 2: Good morning, Michael Sewn. 7 00:00:17,440 --> 00:00:20,520 Speaker 1: Five stories, five minutes, Let's go Story number one. Australia's 8 00:00:20,560 --> 00:00:24,840 Speaker 1: financial regulators have warned that the share of borrowers falling 9 00:00:24,920 --> 00:00:29,200 Speaker 1: behind on mortgage payments has continued to rise as interest rates, 10 00:00:29,200 --> 00:00:31,040 Speaker 1: of course, remain at decade long highs. 11 00:00:31,320 --> 00:00:34,880 Speaker 2: The increase in financial hardship applications is also rising, though 12 00:00:34,920 --> 00:00:37,199 Speaker 2: they are coming off very low levels, according to the 13 00:00:37,200 --> 00:00:40,640 Speaker 2: Council of Financial Regulators. In its quarterly statement, the Council 14 00:00:40,760 --> 00:00:44,240 Speaker 2: said most borrowers have continued to meet their debt repayments, 15 00:00:44,240 --> 00:00:47,120 Speaker 2: but the fact that they mention there's been a rise 16 00:00:47,320 --> 00:00:51,199 Speaker 2: in borrowers falling behind is clear that they're a bit 17 00:00:51,240 --> 00:00:53,479 Speaker 2: worried about it. The Council is made up of the 18 00:00:53,520 --> 00:00:56,960 Speaker 2: Reserve Bank of Australia, the Australian Securities and Investments Commission, 19 00:00:57,000 --> 00:01:00,680 Speaker 2: the Australian Prudential Regulation Authority and Treasury It also commented 20 00:01:00,680 --> 00:01:03,640 Speaker 2: on lending to commercial real estate, not too worried about that. Said, 21 00:01:03,680 --> 00:01:07,560 Speaker 2: bank exposures are relatively low, in part thanks to conservative 22 00:01:07,640 --> 00:01:12,399 Speaker 2: lending practices. Also, relatively strong financial positions of commercial property 23 00:01:12,440 --> 00:01:15,440 Speaker 2: owners means it's not too much to worry about. 24 00:01:15,640 --> 00:01:19,920 Speaker 1: Michael Shawn the report. I'm particularly interested in this part. 25 00:01:20,160 --> 00:01:22,640 Speaker 1: The report also talked about the problems in the cash 26 00:01:22,680 --> 00:01:26,720 Speaker 1: delivery sector, where the near monopoly operator armor Guard has 27 00:01:26,720 --> 00:01:29,760 Speaker 1: been calling for assistance because sending trucks around the country 28 00:01:29,840 --> 00:01:31,760 Speaker 1: is just proving to be uneconomic. 29 00:01:32,200 --> 00:01:34,520 Speaker 2: It's a major challenge for the big banks, Ossie Post 30 00:01:34,560 --> 00:01:37,319 Speaker 2: Reserve Bank, anyone really who accepts cash. In twenty ten, 31 00:01:37,400 --> 00:01:40,520 Speaker 2: around sixty percent of purchases were made in cash. Today 32 00:01:40,600 --> 00:01:44,360 Speaker 2: it's closer to ten percent. Just isn't economic to deliver 33 00:01:44,400 --> 00:01:47,320 Speaker 2: it in those big Armor Guard trucks anymore. This is 34 00:01:47,360 --> 00:01:49,080 Speaker 2: a problem that's been going on for months, and the 35 00:01:49,080 --> 00:01:52,680 Speaker 2: Council of Financial Regulators so it's working to ensure sustainable 36 00:01:52,800 --> 00:01:57,280 Speaker 2: arrangements for cash distribution. Now there's something called the Working 37 00:01:57,320 --> 00:01:59,760 Speaker 2: Group on the Future of Cash Distribution. The Reserve Bank 38 00:01:59,800 --> 00:02:01,800 Speaker 2: chair is it. Minutes from the last meetings show that 39 00:02:01,840 --> 00:02:05,160 Speaker 2: the group is developing a new model to deliver cash. 40 00:02:05,200 --> 00:02:07,240 Speaker 2: No idea what that might be, but it looks like 41 00:02:07,320 --> 00:02:09,639 Speaker 2: the option of having a big private company with those 42 00:02:09,680 --> 00:02:13,280 Speaker 2: big trucks delivering cash and not being supported by the 43 00:02:13,320 --> 00:02:17,720 Speaker 2: governor banks is no longer any good sean Moving. 44 00:02:17,560 --> 00:02:20,359 Speaker 1: On to story number two. Now, private equity group Bain 45 00:02:20,560 --> 00:02:22,960 Speaker 1: Capital has made a one point eighty three billion dollar 46 00:02:23,000 --> 00:02:27,600 Speaker 1: bid for babcoor, the automotive parts retailer that owns Autobarn. 47 00:02:27,360 --> 00:02:30,000 Speaker 2: And also owns the auto pro, Burston and Mitas chains 48 00:02:30,040 --> 00:02:32,760 Speaker 2: and has eleven hundred outlet selling car pass to mechanics 49 00:02:32,760 --> 00:02:35,679 Speaker 2: and fans and mattering. The unsolicited conditional bid of five 50 00:02:35,720 --> 00:02:38,280 Speaker 2: dollars forty a share is a twenty four percent premium 51 00:02:38,320 --> 00:02:40,959 Speaker 2: to the group's share price when it closed last Friday, 52 00:02:41,320 --> 00:02:44,720 Speaker 2: pretty good, but well below the seven bucks or so 53 00:02:45,120 --> 00:02:48,639 Speaker 2: that Babcourt was fetching late last year. The group has 54 00:02:48,720 --> 00:02:51,399 Speaker 2: downgraded its earnings outlooks three times in the last year, 55 00:02:51,440 --> 00:02:54,120 Speaker 2: most recently in May, when its disclosure sent its share 56 00:02:54,120 --> 00:02:56,720 Speaker 2: price down thirty five percent in the day. That is 57 00:02:56,760 --> 00:02:59,079 Speaker 2: a shockup. The group's been hit by the downturn and 58 00:02:59,080 --> 00:03:01,960 Speaker 2: consumer confidence as well as a bunch of management changes 59 00:03:02,240 --> 00:03:04,760 Speaker 2: so it's now being offered the five bucks forty much 60 00:03:04,840 --> 00:03:06,919 Speaker 2: higher than it was, nowhere near what it was a 61 00:03:06,960 --> 00:03:07,840 Speaker 2: couple of months ago. 62 00:03:08,440 --> 00:03:11,960 Speaker 1: Story number three shown business confidence and investment has really 63 00:03:12,040 --> 00:03:14,400 Speaker 1: been one of the shining lights in the economy, but 64 00:03:14,600 --> 00:03:18,360 Speaker 1: sentiment has turned negative and trading conditions and profitability have 65 00:03:18,400 --> 00:03:19,040 Speaker 1: been weakening. 66 00:03:19,520 --> 00:03:22,200 Speaker 2: Yes, business confidence is now negative and blow the long 67 00:03:22,280 --> 00:03:25,520 Speaker 2: run average, with retail, recreation and personal services and wholesale 68 00:03:25,560 --> 00:03:28,519 Speaker 2: businesses all in the red. Confidence in finance, business and 69 00:03:28,560 --> 00:03:32,920 Speaker 2: property as a group remains positive. Business conditions as opposed 70 00:03:32,919 --> 00:03:35,720 Speaker 2: to confidence, has also slipped below the long run average, 71 00:03:35,720 --> 00:03:40,120 Speaker 2: with forward orders deeply negative in retail, wholesale and construction. 72 00:03:40,680 --> 00:03:42,680 Speaker 2: Many companies in those sexes just don't have a full 73 00:03:42,720 --> 00:03:45,800 Speaker 2: colundar of work basically. The National Australia Bank May Business 74 00:03:45,800 --> 00:03:48,760 Speaker 2: Survey shows that the slow down demonstrated in last week's 75 00:03:48,760 --> 00:03:53,000 Speaker 2: March quarter economic growth data has continued into the current quarter. 76 00:03:53,560 --> 00:03:55,640 Speaker 2: Not so good. It also gives us some information on 77 00:03:55,680 --> 00:03:59,240 Speaker 2: the inflation front, as NAB chief economist Alan Osta said 78 00:04:00,280 --> 00:04:03,800 Speaker 2: that inflation will continue to moderate. That's good, but only 79 00:04:03,840 --> 00:04:05,560 Speaker 2: gradually from here. Not so good. 80 00:04:06,000 --> 00:04:08,560 Speaker 1: Story number four Apple has taken the wraps off it's 81 00:04:08,600 --> 00:04:12,400 Speaker 1: long away to new artificial intelligence features for its devices, 82 00:04:12,840 --> 00:04:15,600 Speaker 1: and it seems like the response was a little underwhelming. 83 00:04:16,120 --> 00:04:19,720 Speaker 2: The centerpiece is a partnership with chat GPT maker open 84 00:04:19,800 --> 00:04:23,800 Speaker 2: Ai on a new AI platform called Apple Intelligence. The 85 00:04:23,839 --> 00:04:26,760 Speaker 2: group's worldwide developers a conference also included updates to the 86 00:04:26,760 --> 00:04:30,560 Speaker 2: iPhone makers operating systems. The AI technology will be available 87 00:04:30,560 --> 00:04:34,159 Speaker 2: in smartphones and will help summarize text, create original messages, 88 00:04:34,440 --> 00:04:36,840 Speaker 2: and retrieve the most relevant data when users need it. 89 00:04:36,880 --> 00:04:40,480 Speaker 2: According to Apple, The push also includes a revamped version 90 00:04:40,520 --> 00:04:44,000 Speaker 2: of Siri. The partnership with OpenAI will let customers access 91 00:04:44,080 --> 00:04:47,799 Speaker 2: chat GPT via Siri at no extra cost. Apple Intelligence 92 00:04:47,800 --> 00:04:50,480 Speaker 2: will begin rolling out later this year, but some features, 93 00:04:50,560 --> 00:04:53,640 Speaker 2: including some of those Siri features, won't come until next year. 94 00:04:53,880 --> 00:04:54,200 Speaker 2: All right. 95 00:04:54,279 --> 00:04:57,799 Speaker 1: Last one shown story number five. Singapore Airlines has offered 96 00:04:57,880 --> 00:05:02,120 Speaker 1: ten thousand US dollars in compensation to passengers who sustained 97 00:05:02,240 --> 00:05:05,600 Speaker 1: minor injuries during a flight that hit extreme turbulence last month. 98 00:05:05,800 --> 00:05:08,760 Speaker 2: The airline has also offered to individually discuss a compensation 99 00:05:08,960 --> 00:05:12,760 Speaker 2: for those who sustained more serious injuries. Those recovering from 100 00:05:12,800 --> 00:05:16,080 Speaker 2: serious injury have been offered an advanced payment of twenty 101 00:05:16,160 --> 00:05:18,880 Speaker 2: five thousand US dollars to address their immediate needs. The 102 00:05:18,920 --> 00:05:22,040 Speaker 2: airline also apologized for what it called a traumatic experience 103 00:05:22,040 --> 00:05:25,599 Speaker 2: on board flight SQ three to one last month. Of course, 104 00:05:25,640 --> 00:05:28,000 Speaker 2: a seventy three year old British man died in the event. 105 00:05:28,080 --> 00:05:30,840 Speaker 2: Several dozen of the two hundred and twenty nine passengers 106 00:05:30,880 --> 00:05:33,400 Speaker 2: and crew on board was the really hurt, ranging from 107 00:05:33,480 --> 00:05:35,040 Speaker 2: spinal to skull injuries. 108 00:05:35,440 --> 00:05:37,560 Speaker 1: All right, there we go the top five business stories 109 00:05:37,560 --> 00:05:41,160 Speaker 1: in five minutes. Thank you Sean, Thank you Michael. It's Wednesday, 110 00:05:41,240 --> 00:05:43,400 Speaker 1: the twelfth of June twenty twenty four. Remember to hit 111 00:05:43,440 --> 00:05:45,640 Speaker 1: follow on the podcast and a five minutes saysn't enough. 112 00:05:45,640 --> 00:05:48,120 Speaker 1: You can find our longer daily show called Fear and 113 00:05:48,160 --> 00:05:51,080 Speaker 1: Greed whereever you listen to podcasts, or at Fearangreed dot 114 00:05:51,120 --> 00:05:53,160 Speaker 1: com dot au, which is also we can sign up 115 00:05:53,160 --> 00:05:55,599 Speaker 1: for our free weekly newsletter, which comes out today, so 116 00:05:55,760 --> 00:05:58,600 Speaker 1: better jump in quick. Also out today is the new 117 00:05:58,640 --> 00:06:01,040 Speaker 1: episode of How Do They Afford That, our sister podcast 118 00:06:01,040 --> 00:06:03,680 Speaker 1: all about making your money work harder for you. This 119 00:06:03,720 --> 00:06:07,479 Speaker 1: week's episode all about the top ten financial mistakes to 120 00:06:07,560 --> 00:06:10,479 Speaker 1: avoid in your twenties and thirties. I'm Michael Thompson and 121 00:06:10,520 --> 00:06:12,640 Speaker 1: that was the fast fire business news by fear and greed. 122 00:06:12,920 --> 00:06:15,760 Speaker 1: Have a great day.