1 00:00:03,500 --> 00:00:07,140 Michael Thompson: It's Thursday, the 30th of September 2021. Welcome to the 2 00:00:07,140 --> 00:00:09,369 Michael Thompson: Fear and Greed Business Headlines, where we give you the 3 00:00:09,369 --> 00:00:11,900 Michael Thompson: top five business stories you need to know in just 4 00:00:11,900 --> 00:00:14,600 Michael Thompson: five minutes. I'm Michael Thompson, and good morning, Sean Aylmer. 5 00:00:15,140 --> 00:00:15,970 Sean Aylmer: Good morning, Michael. 6 00:00:16,370 --> 00:00:19,250 Michael Thompson: Top five stories in five minutes. Here we go, story 7 00:00:19,250 --> 00:00:22,020 Michael Thompson: number one. What a day in equity markets. The S&P/ASX 8 00:00:23,190 --> 00:00:28,070 Michael Thompson: 200 lost 1.1% yesterday, following its 1.5% drop on Tuesday. 9 00:00:28,240 --> 00:00:31,220 Michael Thompson: That's tens of billions of dollars in value. What is happening? 10 00:00:31,720 --> 00:00:35,070 Sean Aylmer: In short, traders are worried about inflation. And this is 11 00:00:35,070 --> 00:00:38,780 Sean Aylmer: a global story, not just local. Investors fear what will 12 00:00:38,780 --> 00:00:41,960 Sean Aylmer: happen if inflation pressures prove to be more than transitory, 13 00:00:41,960 --> 00:00:45,770 Sean Aylmer: and central banks around the world start tightening monetary policy 14 00:00:46,040 --> 00:00:50,130 Sean Aylmer: at the same time as economic growth stalls. The COVID pandemic, 15 00:00:50,130 --> 00:00:52,930 Sean Aylmer: rising energy prices, oil and gas and coal prices, are 16 00:00:52,930 --> 00:00:56,150 Sean Aylmer: through the roof, and supply chain and transport problems are 17 00:00:56,150 --> 00:00:59,900 Sean Aylmer: all adding to concerns that price rises might be here 18 00:00:59,900 --> 00:01:02,480 Sean Aylmer: to stay. Now, much of the world's manufacturing is in 19 00:01:02,480 --> 00:01:05,640 Sean Aylmer: China and Southeast Asia. Companies can't get their goods out 20 00:01:05,640 --> 00:01:08,440 Sean Aylmer: of there. The pictures of fuel shortages in the UK, 21 00:01:08,740 --> 00:01:11,740 Sean Aylmer: power outages in China, it's really adding to the fears. 22 00:01:12,050 --> 00:01:14,750 Sean Aylmer: That's hit Wall Street, it's hit European stocks, and now 23 00:01:14,750 --> 00:01:18,230 Sean Aylmer: it's hit Australian stocks. It's broad based, though technology and 24 00:01:18,230 --> 00:01:22,440 Sean Aylmer: healthcare stocks did particularly poorly yesterday. Along the same in lines, 25 00:01:22,440 --> 00:01:25,380 Sean Aylmer: the gold companies, which haven't had many friends recently, did 26 00:01:25,380 --> 00:01:25,959 Sean Aylmer: pretty well. 27 00:01:26,230 --> 00:01:29,929 Michael Thompson: Big story, Sean. That's story number one. Now onto number two. 28 00:01:29,930 --> 00:01:33,050 Michael Thompson: We've spoken a lot about the housing market, the extraordinary 29 00:01:33,050 --> 00:01:37,370 Michael Thompson: growth in house prices. Financial regulators have finally lost patience 30 00:01:37,450 --> 00:01:40,250 Michael Thompson: and they've confirmed they're worried about risks in the mortgage 31 00:01:40,250 --> 00:01:43,209 Michael Thompson: market and will release lending restriction options in the next 32 00:01:43,209 --> 00:01:43,890 Michael Thompson: couple of months. 33 00:01:44,110 --> 00:01:47,059 Sean Aylmer: Sure will. A crowd called the Council of Financial Regulators, 34 00:01:47,060 --> 00:01:50,680 Sean Aylmer: it includes the Australian Prudential Regulation Authority, Reserve Bank, Australian 35 00:01:50,680 --> 00:01:54,210 Sean Aylmer: Securities Investment Commission, and Treasury, that's about as hard-hitting as 36 00:01:54,210 --> 00:01:55,960 Sean Aylmer: you get. They want to take the heat out of 37 00:01:55,960 --> 00:01:59,380 Sean Aylmer: the market. Prices are crazy up about 18% nationally and 38 00:01:59,380 --> 00:02:01,790 Sean Aylmer: higher in places like Sydney. That's on the back of 39 00:02:01,790 --> 00:02:05,059 Sean Aylmer: low interest rates. The economy has gotten through the COVID crisis, 40 00:02:05,390 --> 00:02:08,140 Sean Aylmer: not quite unscathed, but still in pretty fine fettle, so 41 00:02:08,260 --> 00:02:11,540 Sean Aylmer: people have been willing to spend that money to buy houses. 42 00:02:11,910 --> 00:02:15,419 Sean Aylmer: The regulators are specifically worried about lending standards. They could 43 00:02:15,419 --> 00:02:17,980 Sean Aylmer: do all sorts of things. They could lift the amount 44 00:02:17,980 --> 00:02:20,630 Sean Aylmer: that someone needs as a minimum deposit. They could cap 45 00:02:20,630 --> 00:02:22,680 Sean Aylmer: the amount of debt someone could take on. They could 46 00:02:22,680 --> 00:02:25,340 Sean Aylmer: make repayment tests tougher. It's coming in the next couple 47 00:02:25,510 --> 00:02:25,960 Sean Aylmer: of months. 48 00:02:26,220 --> 00:02:29,359 Michael Thompson: All right, that's story two. Story number three, plenty of 49 00:02:29,370 --> 00:02:31,770 Michael Thompson: COVID news around the place. New South Wales and the 50 00:02:31,880 --> 00:02:34,780 Michael Thompson: ACT, and to a lesser extent Victoria, are starting to 51 00:02:34,780 --> 00:02:37,530 Michael Thompson: look towards the end of restrictions and the end of 52 00:02:37,530 --> 00:02:42,440 Michael Thompson: lockdowns. The national vaccination rate hit 53% yesterday. Pretty good 53 00:02:42,450 --> 00:02:44,419 Michael Thompson: news there, but what's the latest on the COVID front 54 00:02:44,419 --> 00:02:45,070 Michael Thompson: in Victoria? 55 00:02:45,520 --> 00:02:49,570 Sean Aylmer: Well, Victoria hit 950 new infections yesterday and seven deaths. 56 00:02:49,570 --> 00:02:52,519 Sean Aylmer: It also announced a snap lockdown in the Latrobe Valley. The 57 00:02:52,520 --> 00:02:54,820 Sean Aylmer: big news out of that state is the workplace safety 58 00:02:54,820 --> 00:02:58,290 Sean Aylmer: watchdog has laid charges against the state's health department about 59 00:02:58,290 --> 00:03:01,290 Sean Aylmer: the quarantine breaches last year. The numbers in New South 60 00:03:01,290 --> 00:03:04,840 Sean Aylmer: Wales were better, there were 863 new cases, though unfortunately 61 00:03:05,100 --> 00:03:06,020 Sean Aylmer: 15 deaths. 62 00:03:06,230 --> 00:03:09,040 Michael Thompson: And story number four is linked, in a way. It's 63 00:03:09,040 --> 00:03:11,740 Michael Thompson: from the Bureau of Statistics, which yesterday said that there 64 00:03:11,740 --> 00:03:14,600 Michael Thompson: were falls in the top five leading causes of death 65 00:03:14,620 --> 00:03:17,340 Michael Thompson: in Australia last year. I suppose, in a way, it's 66 00:03:17,340 --> 00:03:19,480 Michael Thompson: the silver lining of the COVID pandemic. 67 00:03:19,710 --> 00:03:22,110 Sean Aylmer: It is Michael, and we need a silver lining. The 68 00:03:22,110 --> 00:03:24,750 Sean Aylmer: top cause of death in Australia, for the last few 69 00:03:24,750 --> 00:03:27,460 Sean Aylmer: years, has been heart disease. But last year, the number 70 00:03:27,460 --> 00:03:30,980 Sean Aylmer: of deaths was lower than 2019. And that's the first 71 00:03:30,980 --> 00:03:34,530 Sean Aylmer: time the annual number of fatalities has fallen since 2009. 72 00:03:34,850 --> 00:03:37,810 Sean Aylmer: The next biggest cause of death is dementia, including Alzheimer's 73 00:03:37,810 --> 00:03:41,680 Sean Aylmer: disease, then strokes, lung cancer, and chronic lower respiratory diseases. 74 00:03:42,090 --> 00:03:45,890 Sean Aylmer: All of these fell as well. Now, the reason is 75 00:03:45,890 --> 00:03:48,790 Sean Aylmer: that all the public health measures around COVID have suppressed 76 00:03:48,870 --> 00:03:52,540 Sean Aylmer: the spread of other infectious diseases. For example, there were 77 00:03:52,540 --> 00:03:55,970 Sean Aylmer: just 55 deaths from the flu in 2020 compared to 78 00:03:55,970 --> 00:04:00,010 Sean Aylmer: more than 1000 in 2019. And if you're interested, COVID-19 79 00:04:00,010 --> 00:04:03,760 Sean Aylmer: was the 38th ranked cause of death. Another thing out 80 00:04:03,760 --> 00:04:06,350 Sean Aylmer: of the numbers is that there were also decreases in 81 00:04:06,350 --> 00:04:10,110 Sean Aylmer: deaths from preventable causes, such as suicide, drug overdose, and 82 00:04:10,110 --> 00:04:13,470 Sean Aylmer: motor vehicle accidents. Though unfortunately, there was an increase in 83 00:04:13,470 --> 00:04:14,720 Sean Aylmer: alcohol or related deaths. 84 00:04:14,880 --> 00:04:17,670 Michael Thompson: All right, Sean. Story number five. And I don't know 85 00:04:17,670 --> 00:04:19,900 Michael Thompson: whether you've included this one because you're a fan of 86 00:04:19,900 --> 00:04:23,430 Michael Thompson: The Ramones, or just because of the money involved. Tell 87 00:04:23,430 --> 00:04:24,040 Michael Thompson: me about this one. 88 00:04:24,690 --> 00:04:26,640 Sean Aylmer: Well, The Ramones were a punk band in the mid 89 00:04:26,640 --> 00:04:29,580 Sean Aylmer: to late 1970s out of New York City. Arguably the 90 00:04:29,580 --> 00:04:32,820 Sean Aylmer: most influential punk band out of that country. Not everyone's 91 00:04:32,820 --> 00:04:34,190 Sean Aylmer: cup of tea, and in fact, to be honest, I'm 92 00:04:34,190 --> 00:04:38,210 Sean Aylmer: not a huge fan. But the guitar played by Johnny Ramone, 93 00:04:38,390 --> 00:04:41,789 Sean Aylmer: who was the lead guitarist, on all the band's 15 albums 94 00:04:41,790 --> 00:04:47,650 Sean Aylmer: and nearly 2000 live performances sold over the weekend for US$1.2 million. 95 00:04:48,700 --> 00:04:52,150 Sean Aylmer: Johnny died in 2004, indeed all four original members of 96 00:04:52,150 --> 00:04:54,970 Sean Aylmer: The Ramones have passed on. However, the owner of the guitar picked up 97 00:04:55,040 --> 00:04:57,170 Sean Aylmer: US$1.2 million for it. 98 00:04:57,440 --> 00:05:00,950 Michael Thompson: Wow, incredible story. There we go. Five business stories in 99 00:05:00,950 --> 00:05:02,410 Michael Thompson: five minutes. Thank you very much, Sean. 100 00:05:02,580 --> 00:05:03,089 Sean Aylmer: Thanks, Michael. 101 00:05:03,440 --> 00:05:07,529 Michael Thompson: It's Thursday, the 30th of September 2021. Remember to hit follow. 102 00:05:07,529 --> 00:05:09,680 Michael Thompson: And if five minutes isn't enough, then search for our 103 00:05:09,680 --> 00:05:12,810 Michael Thompson: longer podcast called Fear and Greed on your podcast platform, 104 00:05:13,050 --> 00:05:18,020 Michael Thompson: and sign up for our free daily newsletter fearandgreed.com.au. I'm Michael Thompson, 105 00:05:18,080 --> 00:05:20,440 Michael Thompson: and that was the Fear and Greed business headlines. Have 106 00:05:20,440 --> 00:05:20,950 Michael Thompson: a great day.