1 00:00:03,840 --> 00:00:07,080 Speaker 1: It's Tuesday, the thirteenth of August twenty twenty four. Welcome 2 00:00:07,120 --> 00:00:09,400 Speaker 1: to the Fast five Business News by Fear and Greed, 3 00:00:09,400 --> 00:00:11,160 Speaker 1: where we give you the top five business stories you 4 00:00:11,200 --> 00:00:12,600 Speaker 1: need to know when just five minutes. 5 00:00:12,760 --> 00:00:16,040 Speaker 2: Are Michael Thompson and good morning, Sean Aylmer, Good morning, 6 00:00:16,079 --> 00:00:17,160 Speaker 2: Michael Shawn. 7 00:00:17,239 --> 00:00:19,160 Speaker 1: Five big stories to get through in five minutes, so 8 00:00:19,280 --> 00:00:22,240 Speaker 1: let's get going. Story Number one. JB High Fi shareholders 9 00:00:22,239 --> 00:00:25,840 Speaker 1: are happy today after the country's best regarded retailer announced 10 00:00:25,840 --> 00:00:29,200 Speaker 1: a big special dividend and at share price jump ten percent. 11 00:00:29,240 --> 00:00:32,080 Speaker 1: But perhaps the underlying result, Sean, isn't quite as golden. 12 00:00:32,680 --> 00:00:35,400 Speaker 1: Look I say golden. It's obviously a reference to JB's 13 00:00:35,400 --> 00:00:37,440 Speaker 1: signature color, which is more yellow. But I'm going to 14 00:00:37,520 --> 00:00:38,400 Speaker 1: run with it anyway. 15 00:00:38,840 --> 00:00:41,000 Speaker 2: I like it. I like it. JV Hi Fi was 16 00:00:41,000 --> 00:00:44,000 Speaker 2: the first major retailer to report full year results, and 17 00:00:44,080 --> 00:00:46,639 Speaker 2: it's better than expected result. Underlying profit for the full 18 00:00:46,720 --> 00:00:48,880 Speaker 2: years four hundred and thirty nine million dollars pushed his 19 00:00:49,000 --> 00:00:51,800 Speaker 2: share price sharply higher. Helping out was a special eighty 20 00:00:51,800 --> 00:00:54,640 Speaker 2: cent a share dividend, but the result was sixteen percent 21 00:00:54,840 --> 00:00:57,520 Speaker 2: lower than last year. Title revenue was lower, gross margins 22 00:00:57,520 --> 00:01:00,000 Speaker 2: would narrow it. It ain't all good news for retailer 23 00:01:00,440 --> 00:01:02,760 Speaker 2: thanks to cost of living, precious and higher interest rates. 24 00:01:02,960 --> 00:01:04,760 Speaker 2: This is the case of the result being much better 25 00:01:04,800 --> 00:01:07,880 Speaker 2: than expected, but those expectations had been beaten down in 26 00:01:07,920 --> 00:01:11,200 Speaker 2: recent months. JB is a really important result. It isn't 27 00:01:11,200 --> 00:01:13,560 Speaker 2: that big a company. It's about the sixty fifth largest 28 00:01:13,560 --> 00:01:15,720 Speaker 2: of the top two hundred, worth about eight billion dollars, 29 00:01:15,800 --> 00:01:18,760 Speaker 2: but it is considered the best run retailer. So if 30 00:01:18,760 --> 00:01:21,880 Speaker 2: it can't make money, how will the others go? That's 31 00:01:21,920 --> 00:01:24,880 Speaker 2: why the slide and revenue and earnings is worth noting. 32 00:01:24,959 --> 00:01:28,000 Speaker 2: The group law also pay a smaller final dividend, but 33 00:01:28,040 --> 00:01:31,520 Speaker 2: a whopping special dividend. That's significant too because if JB 34 00:01:31,760 --> 00:01:34,520 Speaker 2: thought it could keep paying a high final dividend in 35 00:01:34,560 --> 00:01:37,360 Speaker 2: the future, then it wouldn't have gone backwards this year. 36 00:01:38,080 --> 00:01:42,080 Speaker 1: That does make sense. JB hi Fi also said Sean 37 00:01:42,120 --> 00:01:45,400 Speaker 1: that it's branching out beyond its business to consumer model. 38 00:01:45,400 --> 00:01:47,040 Speaker 1: What's going on there, Well. 39 00:01:46,840 --> 00:01:48,880 Speaker 2: It's purchased a group E and S Trading, which is 40 00:01:48,920 --> 00:01:51,680 Speaker 2: ten show rooms in Victoria and another in Canberra, paid 41 00:01:51,720 --> 00:01:54,080 Speaker 2: nearly fifty million dollars for seventy five percent can buy 42 00:01:54,120 --> 00:01:55,840 Speaker 2: the other twenty five percent in a few years time. 43 00:01:56,680 --> 00:01:59,320 Speaker 2: Chief executive Terry Smart said it provided exposure to the 44 00:01:59,320 --> 00:02:02,080 Speaker 2: premium home ap clients, customers, the bathroom category in large 45 00:02:02,120 --> 00:02:07,160 Speaker 2: commercial construction customers, as well as to boutique builders in architects. Essentially, 46 00:02:07,400 --> 00:02:11,160 Speaker 2: it's pushing beyond that base model of just selling to consumers. 47 00:02:11,720 --> 00:02:13,680 Speaker 1: All right, Moving on to story number two. Now, the 48 00:02:13,840 --> 00:02:17,080 Speaker 1: US or the UK could pull out of the Orcas 49 00:02:17,280 --> 00:02:20,480 Speaker 1: submarine deal with just a year's notice if either nation 50 00:02:20,600 --> 00:02:24,320 Speaker 1: decides that the pact weakens their own nuclear submarine programs. 51 00:02:24,440 --> 00:02:26,240 Speaker 1: New documents reveal an. 52 00:02:26,160 --> 00:02:29,760 Speaker 2: Updated Orchist agreement and a political understanding between the countries, 53 00:02:29,800 --> 00:02:33,800 Speaker 2: tabled in Parliament yesterday, establishes a fifty year legal framework 54 00:02:33,840 --> 00:02:36,920 Speaker 2: for the transfer of nuclear materials and equipment to Australia. 55 00:02:37,040 --> 00:02:40,280 Speaker 2: The understanding says the US and UK should not unreasonably 56 00:02:40,320 --> 00:02:44,600 Speaker 2: withhold nuclear information or equipment from Australia, according to a 57 00:02:44,600 --> 00:02:47,520 Speaker 2: report in The Australian, but it includes an escape clause 58 00:02:47,560 --> 00:02:50,520 Speaker 2: for either country if they decide the orchestraal adversely affects 59 00:02:50,560 --> 00:02:54,440 Speaker 2: their ability to meet their respective military requirements and to 60 00:02:54,480 --> 00:02:59,480 Speaker 2: not degrade their respective naval nuclear propultion programs. The new 61 00:02:59,520 --> 00:03:02,720 Speaker 2: agreement and additional political commitments were revealed by Joe Biden 62 00:03:02,760 --> 00:03:04,639 Speaker 2: late last week, and a letter to the US Congress 63 00:03:04,800 --> 00:03:07,760 Speaker 2: only disclosed yesterday morning when they were tabled in Parliament. 64 00:03:08,160 --> 00:03:11,120 Speaker 1: Story number three, The A Triple Sea has delayed green 65 00:03:11,200 --> 00:03:15,200 Speaker 1: lighting the merger of Chemist Warehouse and Sigma Healthcare. It 66 00:03:15,240 --> 00:03:18,240 Speaker 1: needs more time to decide on the impact the deal 67 00:03:18,280 --> 00:03:19,919 Speaker 1: would have on smaller pharmacies. 68 00:03:20,800 --> 00:03:23,040 Speaker 2: It's the biggest merger deal of the year, worth nearly 69 00:03:23,120 --> 00:03:26,280 Speaker 2: nine billion dollars. It would create a listed pharmaceutical retailing 70 00:03:26,280 --> 00:03:29,800 Speaker 2: and wholesale and giant. The Competition Watchdog had originally expected 71 00:03:29,840 --> 00:03:32,240 Speaker 2: to decide whether to approve the deal next month, but 72 00:03:32,440 --> 00:03:35,840 Speaker 2: it's already raised five orange flags in the preliminary assessment 73 00:03:35,880 --> 00:03:38,120 Speaker 2: of the deal. Basically, if it goes ahead, the new 74 00:03:38,160 --> 00:03:41,920 Speaker 2: company would make Chemist Warehouse a wholesaler and a retailer, 75 00:03:41,960 --> 00:03:44,720 Speaker 2: and that's what worries the AH triable see according to me. 76 00:03:44,800 --> 00:03:47,560 Speaker 2: He reports the decision to delay is due to difficulty 77 00:03:47,800 --> 00:03:50,240 Speaker 2: in assessing the impact of the deal on a network 78 00:03:50,280 --> 00:03:50,920 Speaker 2: of pharmacies. 79 00:03:50,960 --> 00:03:54,280 Speaker 1: By suburb the story number four, I'd love to hear 80 00:03:54,320 --> 00:03:56,400 Speaker 1: what you think of this one shown the relatively new 81 00:03:56,440 --> 00:04:00,880 Speaker 1: Deputy Governor of the Reserve Bank, Andrew Houser, has economic 82 00:04:00,880 --> 00:04:06,040 Speaker 1: commentators false prophets whose poor predictions could make people worse. 83 00:04:05,800 --> 00:04:09,840 Speaker 2: Off hm people in glasshouses, Michael. The Central Bank is 84 00:04:09,960 --> 00:04:12,440 Speaker 2: known for being conservative. It's only been a few months, 85 00:04:12,440 --> 00:04:14,840 Speaker 2: in fact, that the governor has even been giving press conferences. 86 00:04:15,040 --> 00:04:18,000 Speaker 2: Mister House yesterday told an Economic Society of Australia event 87 00:04:18,320 --> 00:04:22,080 Speaker 2: that a vibrant public economic debate with diverse views is healthy. 88 00:04:22,440 --> 00:04:25,839 Speaker 2: What's less desirable is the extraordinary certainty with which individual 89 00:04:25,960 --> 00:04:28,279 Speaker 2: views about the outlook for the economy and the path 90 00:04:28,279 --> 00:04:31,240 Speaker 2: of monetary policy can sometimes be expressed. He went on 91 00:04:31,320 --> 00:04:34,280 Speaker 2: to say economic commentators have created a world of winners 92 00:04:34,279 --> 00:04:38,479 Speaker 2: and losers, gurus and Charlatan's, geniuses and buffoons. Those seeing 93 00:04:38,520 --> 00:04:42,760 Speaker 2: things differently are castigated as incompetent, biased, or on the make, 94 00:04:43,160 --> 00:04:47,359 Speaker 2: and changes in view are presented as disastrous or humiliating failures. 95 00:04:47,600 --> 00:04:50,960 Speaker 2: He said. Commentators claiming supreme confidence or certainty over what 96 00:04:51,120 --> 00:04:56,560 Speaker 2: is intrinsically uncertain and ambiguous is a dangerous game and 97 00:04:56,640 --> 00:04:59,640 Speaker 2: at worse, risks driving poor analysis and decision making that 98 00:04:59,680 --> 00:05:02,719 Speaker 2: could the welfare of Australians. He didn't hold back. 99 00:05:03,320 --> 00:05:06,200 Speaker 1: No, he certainly didn't last. One story Number five, the 100 00:05:06,200 --> 00:05:08,320 Speaker 1: one day work flight where you get up early in 101 00:05:08,360 --> 00:05:10,800 Speaker 1: the morning, fly to a destination, and then return late 102 00:05:10,800 --> 00:05:14,040 Speaker 1: at night. It's apparently out of fashion, with companies dumping 103 00:05:14,040 --> 00:05:15,240 Speaker 1: the practice. Post COVID. 104 00:05:15,400 --> 00:05:17,840 Speaker 2: The new normal and corporate travel has changed. According to 105 00:05:17,880 --> 00:05:19,880 Speaker 2: the boss of the Global Industry trade body, the one 106 00:05:19,920 --> 00:05:21,839 Speaker 2: day flight trip for work went out the door at 107 00:05:21,839 --> 00:05:24,320 Speaker 2: the beginning of COVID hasn't really come back. According to 108 00:05:24,360 --> 00:05:28,480 Speaker 2: Suzanne Neufang, head of the Global Business Travel Association, delays 109 00:05:28,520 --> 00:05:31,719 Speaker 2: in cancer flights are partly responsible for fewer trips since 110 00:05:31,720 --> 00:05:34,080 Speaker 2: the pandemic, with fifty percent of respondents to a survey 111 00:05:34,200 --> 00:05:37,720 Speaker 2: saying concerns about disruptions or an unpleasant experience have somewhat 112 00:05:37,760 --> 00:05:41,120 Speaker 2: or greatly reduced their willingness to travel for work. According 113 00:05:41,120 --> 00:05:44,240 Speaker 2: to report in the ft, environmental and sustainable factors have 114 00:05:44,320 --> 00:05:47,240 Speaker 2: also played a role as corporates try and cut back 115 00:05:47,320 --> 00:05:51,119 Speaker 2: on emissions. In addition, there's a human element. Newfang added, 116 00:05:51,200 --> 00:05:53,240 Speaker 2: day trips are really hard, no matter what. Even on 117 00:05:53,279 --> 00:05:56,839 Speaker 2: the best days, they're hard, very early starts and late returns. 118 00:05:57,480 --> 00:05:59,479 Speaker 1: All right, there we go. The top five business stories 119 00:05:59,480 --> 00:06:02,320 Speaker 1: in five minute Thank you Sean, Thank you Michael. It 120 00:06:02,400 --> 00:06:05,120 Speaker 1: is Tuesday, the thirteenth of August twenty twenty four, remembered 121 00:06:05,160 --> 00:06:07,440 Speaker 1: hit follow on the podcast and in five minutes isn't enough. 122 00:06:07,480 --> 00:06:09,839 Speaker 1: You can find our longer daily show called Fear and 123 00:06:09,880 --> 00:06:12,040 Speaker 1: Greed whereever you listen to podcasts, and that also comes 124 00:06:12,080 --> 00:06:14,919 Speaker 1: with a bunch of interviews and things. Today's interview is 125 00:06:14,960 --> 00:06:18,680 Speaker 1: with Nicola Powell from Domain about why this spring selling 126 00:06:18,720 --> 00:06:21,440 Speaker 1: season could be the best one that buyers have seen 127 00:06:21,640 --> 00:06:23,880 Speaker 1: in a number of years. I'm Michael Thompson and that 128 00:06:23,960 --> 00:06:26,120 Speaker 1: was the fast five business news by Fear and Greed. 129 00:06:26,360 --> 00:06:29,239 Speaker 1: Have a great day.