1 00:00:03,790 --> 00:00:07,840 Michael Thompson: It's Friday, the 24th of September, 2021. Welcome to Fear 2 00:00:07,840 --> 00:00:10,250 Michael Thompson: and Greed, the business podcast that sets you up for 3 00:00:10,250 --> 00:00:13,850 Michael Thompson: a successful day. I'm Michael Thompson, and good morning, Sean Aylmer. 4 00:00:14,210 --> 00:00:16,239 Sean Aylmer: I love Fridays, Michael. Good morning. 5 00:00:16,720 --> 00:00:20,120 Michael Thompson: This morning the country's big lenders warn on property prices 6 00:00:20,120 --> 00:00:22,450 Michael Thompson: and hint they might take action to cool the market. 7 00:00:22,570 --> 00:00:26,270 Michael Thompson: That's our main story. Also, the local share market surges 8 00:00:26,270 --> 00:00:29,310 Michael Thompson: on good news, a record week for the vaccine rollout, 9 00:00:29,590 --> 00:00:33,410 Michael Thompson: and the corporate watchdog warns about pump and dump schemes. Then, 10 00:00:33,440 --> 00:00:36,690 Michael Thompson: stay listening for Sean's chat to Michael Pillemer from PPS 11 00:00:36,700 --> 00:00:40,110 Michael Thompson: Mutual about the beleaguered life insurance sector and how it's 12 00:00:40,110 --> 00:00:44,040 Michael Thompson: changed since the Royal Commission. But first, the Commonwealth Bank 13 00:00:44,040 --> 00:00:47,150 Michael Thompson: boss is worried, Sean, about the speed at which property 14 00:00:47,150 --> 00:00:50,720 Michael Thompson: prices are rising, saying banks should act to cool the market. 15 00:00:51,260 --> 00:00:54,510 Sean Aylmer: It's pretty incredible when the country's biggest lender, that makes 16 00:00:54,510 --> 00:00:58,430 Sean Aylmer: money by providing finance to homebuyers, calls for a slowdown 17 00:00:58,430 --> 00:01:01,620 Sean Aylmer: in the market. Where else does that happen? But that's 18 00:01:01,620 --> 00:01:04,660 Sean Aylmer: exactly what Matt Comyn did yesterday appearing before a House 19 00:01:04,660 --> 00:01:08,280 Sean Aylmer: of Representatives hearing. He's not worried about today, but he's 20 00:01:08,280 --> 00:01:11,429 Sean Aylmer: worried about 12 months time and beyond if things stay 21 00:01:11,430 --> 00:01:14,340 Sean Aylmer: as hot as they are. Mr. Comyn said there'd been 22 00:01:14,340 --> 00:01:18,759 Sean Aylmer: more loan applications than usual, despite the lockdowns, and alongside 23 00:01:18,760 --> 00:01:21,459 Sean Aylmer: higher house prices, that could well and truly be a 24 00:01:21,459 --> 00:01:25,030 Sean Aylmer: problem. He was followed by ANZ boss Shayne Elliott, and 25 00:01:25,030 --> 00:01:27,660 Sean Aylmer: he repeated what he said before that he's worried that 26 00:01:27,660 --> 00:01:30,610 Sean Aylmer: the rise in house prices could trigger social problems in 27 00:01:30,610 --> 00:01:35,021 Sean Aylmer: the community. ANZ's noticed borrowers are extending themselves, Mr. Elliott said. 28 00:01:35,021 --> 00:01:38,179 Michael Thompson: Yeah, and of course, on Wednesday the Reserve Bank said 29 00:01:38,180 --> 00:01:39,220 Michael Thompson: it was worried as well. 30 00:01:39,390 --> 00:01:42,510 Sean Aylmer: It did. Assistant Governor Michelle Bullock said there were concerns 31 00:01:42,510 --> 00:01:46,480 Sean Aylmer: about future indebtedness if things continue as they are there, 32 00:01:46,480 --> 00:01:48,080 Sean Aylmer: though the Central Bank has made it pretty clear it's 33 00:01:48,080 --> 00:01:50,280 Sean Aylmer: not about to lift interest rates to actually prick the 34 00:01:50,280 --> 00:01:53,460 Sean Aylmer: bubble. Keep in mind amidst all this core logic figures 35 00:01:53,460 --> 00:01:56,800 Sean Aylmer: show that house prices are up on average 18% over 36 00:01:56,800 --> 00:01:59,640 Sean Aylmer: the past year and have risen at an 11 times 37 00:01:59,640 --> 00:02:01,440 Sean Aylmer: the rate of wages growth. 38 00:02:01,750 --> 00:02:06,190 Michael Thompson: So Commonwealth Bank, ANZ, both talking about it. Will those 39 00:02:06,190 --> 00:02:08,399 Michael Thompson: banks and the other lenders do anything about it? 40 00:02:08,710 --> 00:02:11,350 Sean Aylmer: Commonwealth Bank already has. It's lifted what it calls the 41 00:02:11,350 --> 00:02:15,070 Sean Aylmer: benchmark floor rate to five and a half per cent. That's 42 00:02:15,070 --> 00:02:18,100 Sean Aylmer: the rate the bank uses when judging whether a borrower 43 00:02:18,419 --> 00:02:21,480 Sean Aylmer: can afford repayments in the future. Five and a half 44 00:02:21,480 --> 00:02:24,829 Sean Aylmer: per cent is about double the variable interest rate at the moment, 45 00:02:25,190 --> 00:02:27,430 Sean Aylmer: and the bank wants to know people taking out loans 46 00:02:27,430 --> 00:02:30,150 Sean Aylmer: right now can pay that sort of interest rate into 47 00:02:30,150 --> 00:02:32,989 Sean Aylmer: the future. While the banks want to make more home loans, 48 00:02:32,990 --> 00:02:36,300 Sean Aylmer: that's their business, it certainly isn't in their interest if 49 00:02:36,300 --> 00:02:38,940 Sean Aylmer: borrowers hit the wall in two, three, or four years time. 50 00:02:39,360 --> 00:02:41,769 Sean Aylmer: There are also natural stabilisers in the market at the moment, 51 00:02:41,820 --> 00:02:43,500 Sean Aylmer: which will take some of the heat out of it. 52 00:02:43,690 --> 00:02:47,730 Sean Aylmer: Housing affordability has fallen because prices have risen so much. 53 00:02:47,919 --> 00:02:49,940 Sean Aylmer: And with a bit of luck that will cause the 54 00:02:49,940 --> 00:02:52,580 Sean Aylmer: heat to come out of the market, notwithstanding we still 55 00:02:52,580 --> 00:02:54,130 Sean Aylmer: have ultra low interest rates. 56 00:02:54,770 --> 00:02:56,850 Michael Thompson: Yeah, big issue. One to watch over coming weeks and 57 00:02:56,850 --> 00:02:59,089 Michael Thompson: months. So what have the market's done over the last 58 00:02:59,090 --> 00:03:00,050 Michael Thompson: 24 hours? 59 00:03:00,210 --> 00:03:03,130 Sean Aylmer: This week has been all about central banks, Michael, and 60 00:03:03,130 --> 00:03:06,250 Sean Aylmer: what they think on interest rates. Overnight, the Bank of 61 00:03:06,250 --> 00:03:09,070 Sean Aylmer: England said the case for higher interest rates appear to 62 00:03:09,070 --> 00:03:11,970 Sean Aylmer: have strengthened and it's pushed up its forecast for inflation. 63 00:03:12,230 --> 00:03:15,490 Sean Aylmer: Now remember 24 hours earlier, the Federal Reserve was a 64 00:03:15,490 --> 00:03:18,150 Sean Aylmer: little more upbeat about the economic outlook for the US, 65 00:03:18,350 --> 00:03:20,650 Sean Aylmer: and some members of the board of the Fed think 66 00:03:20,650 --> 00:03:23,810 Sean Aylmer: interest rates should actually rise next year. Norway's Central Bank 67 00:03:23,810 --> 00:03:27,019 Sean Aylmer: lifted rates yesterday, that's one of the first developed nations 68 00:03:27,020 --> 00:03:30,070 Sean Aylmer: to do so, but Australia's Reserve Bank earlier this week 69 00:03:30,070 --> 00:03:32,710 Sean Aylmer: said it was committed to keeping rates on hold, while 70 00:03:32,710 --> 00:03:35,240 Sean Aylmer: the Bank of Japan did the same. The central banks 71 00:03:35,240 --> 00:03:37,970 Sean Aylmer: have been driving the mood in global financial markets, no 72 00:03:37,970 --> 00:03:41,610 Sean Aylmer: doubt about that. And the upbeat assessments of economies have 73 00:03:41,610 --> 00:03:45,190 Sean Aylmer: pushed bourses higher. Overnight Wall Street surged with the major 74 00:03:45,190 --> 00:03:48,470 Sean Aylmer: indices up more than 1%. The STOXX Europe 600 was 75 00:03:48,470 --> 00:03:54,260 Sean Aylmer: up 0.9%, notwithstanding London's FTSE falling slightly. Yesterday the local 76 00:03:54,260 --> 00:03:59,850 Sean Aylmer: market closed up 1% to 7,370 points. That's three positive sessions 77 00:03:59,850 --> 00:04:03,420 Sean Aylmer: in a row after Monday's sell off. Importantly for the 78 00:04:03,420 --> 00:04:06,089 Sean Aylmer: biggest trading miners, the price of iron ore has pushed back 79 00:04:06,090 --> 00:04:09,870 Sean Aylmer: towards $US110 dollars a ton. That's nearly 20% higher than 80 00:04:09,870 --> 00:04:12,619 Sean Aylmer: where it was a few days ago. There is pent up demand 81 00:04:12,620 --> 00:04:14,840 Sean Aylmer: on the back of holidays in China for iron ore, 82 00:04:15,060 --> 00:04:18,280 Sean Aylmer: as well as relief that the country's largest property group, Evergrande, 83 00:04:18,890 --> 00:04:22,640 Sean Aylmer: managed to make its bond coupon repayments yesterday. Oil prices 84 00:04:22,640 --> 00:04:25,330 Sean Aylmer: were also up overnight, that's not great for petrol prices, 85 00:04:25,540 --> 00:04:29,290 Sean Aylmer: and gold fell back below $US1,750 dollars an ounce. 86 00:04:29,470 --> 00:04:31,060 Michael Thompson: We'll be back in a moment with the rest of 87 00:04:31,060 --> 00:04:32,310 Michael Thompson: the day's business news. 88 00:04:37,520 --> 00:04:40,750 Michael Thompson: Sean, plenty of stories around this morning. It's been a 89 00:04:40,750 --> 00:04:44,229 Michael Thompson: record week for the national vaccine rollout with 2 million 90 00:04:44,270 --> 00:04:47,830 Michael Thompson: doses administered over the past seven days. That's pretty incredible. 91 00:04:48,089 --> 00:04:52,100 Michael Thompson: As at yesterday, 74% of adults over the age of 16 92 00:04:52,100 --> 00:04:56,960 Michael Thompson: have had at least one dose, and 49.3% are fully vaccinated. 93 00:04:57,140 --> 00:04:57,870 Michael Thompson: Good news. 94 00:04:58,130 --> 00:05:02,560 Sean Aylmer: Sure is. Each vaccination is just one step closer to 95 00:05:02,560 --> 00:05:05,690 Sean Aylmer: easing restrictions in New South Wales, Victoria, and the ACT, 96 00:05:06,490 --> 00:05:10,230 Sean Aylmer: and reopening domestic and international borders. And we all want that. 97 00:05:10,670 --> 00:05:14,670 Sean Aylmer: The benefits of vaccination are also clear in the hospitalisation rates. Non- 98 00:05:14,670 --> 00:05:19,440 Sean Aylmer: vaccinated people make up a disproportionate number of people going 99 00:05:19,440 --> 00:05:23,350 Sean Aylmer: to hospital. Unfortunately, the case numbers in Victoria do continue 100 00:05:23,350 --> 00:05:28,190 Sean Aylmer: to rise, 766 new cases yesterday. That's the highest daily 101 00:05:28,230 --> 00:05:31,669 Sean Aylmer: total since the start of the pandemic. And there were 102 00:05:31,670 --> 00:05:35,770 Sean Aylmer: four deaths. Melbourne's Northern suburbs, that's still the problem region 103 00:05:35,839 --> 00:05:38,529 Sean Aylmer: for the pandemic in that state. The good news for 104 00:05:38,529 --> 00:05:41,250 Sean Aylmer: many Victorians stranded in Sydney though, is that they will 105 00:05:41,250 --> 00:05:44,440 Sean Aylmer: be able to return home from September 30, provided they're 106 00:05:44,440 --> 00:05:47,820 Sean Aylmer: fully vaccinated, but they will have to quarantine for 14 days. 107 00:05:48,200 --> 00:05:51,789 Sean Aylmer: New South Wales recorded 1,063 new cases yesterday. It was the 108 00:05:51,860 --> 00:05:54,980 Sean Aylmer: 90th day of lockdown for that state. Six people died, 109 00:05:54,980 --> 00:05:59,529 Sean Aylmer: taking the toll from the current outbreak to 266. 84% 110 00:05:59,529 --> 00:06:02,049 Sean Aylmer: of its state's population now has had one jab. ACT 111 00:06:02,050 --> 00:06:06,190 Sean Aylmer: recorded 16 new cases. Meanwhile, Prime Minister Scott Morrison said 112 00:06:06,190 --> 00:06:09,370 Sean Aylmer: Australia would share another 20 million doses with the region. 113 00:06:09,730 --> 00:06:14,219 Sean Aylmer: Now I'm not sure, Michael, what share means. Presumably, he's 114 00:06:14,220 --> 00:06:18,080 Sean Aylmer: saying we'll donate the doses, but I'm not really sure. 115 00:06:18,800 --> 00:06:22,219 Michael Thompson: What, you're saying a politician isn't saying exactly what they mean? 116 00:06:22,390 --> 00:06:23,440 Sean Aylmer: Ah, surely not. 117 00:06:23,560 --> 00:06:27,860 Michael Thompson: Most curious. Now, billionaire retailer Solomon Lew, whose group Premier 118 00:06:27,860 --> 00:06:30,760 Michael Thompson: Investments was a big beneficiary of government support during the 119 00:06:30,760 --> 00:06:35,270 Michael Thompson: COVID pandemic, has called for compulsory vaccinations and temperature checks 120 00:06:35,270 --> 00:06:36,980 Michael Thompson: for people entering shopping centres. 121 00:06:37,270 --> 00:06:41,740 Sean Aylmer: Exactly. He thinks everyone entering a mall should be checked then, 122 00:06:41,740 --> 00:06:44,900 Sean Aylmer: at the front door, rather than when they enter shops. 123 00:06:45,220 --> 00:06:47,640 Sean Aylmer: And if you're not vaccinated, you don't get to come in. 124 00:06:48,010 --> 00:06:50,630 Sean Aylmer: As he said, " Who wants to sit next to someone 125 00:06:50,630 --> 00:06:53,410 Sean Aylmer: in a food court if they're worried they might have COVID?" 126 00:06:54,029 --> 00:06:56,279 Sean Aylmer: He was speaking after announcing an almost doubling of full 127 00:06:56,279 --> 00:07:00,239 Sean Aylmer: year profits to more than $270 million. Now, remember Solly 128 00:07:00,240 --> 00:07:03,620 Sean Aylmer: Lew and Premier had quite a fight with landlords last year, 129 00:07:03,860 --> 00:07:07,140 Sean Aylmer: refusing to pay rent during COVID lockdowns and then it 130 00:07:07,140 --> 00:07:10,810 Sean Aylmer: was highly criticised for taking the JobKeeper payments, notwithstanding how 131 00:07:10,810 --> 00:07:13,440 Sean Aylmer: much money it was making. Eventually, it was pressured to 132 00:07:13,440 --> 00:07:16,500 Sean Aylmer: give some of that back. Premier includes stores like Smiggle, 133 00:07:16,500 --> 00:07:19,860 Sean Aylmer: Just Jeans, Portmans, and Peter Alexander, which actually was a 134 00:07:19,860 --> 00:07:23,900 Sean Aylmer: standout performer. Perhaps that's not surprising given pyjama fashion is 135 00:07:23,900 --> 00:07:26,710 Sean Aylmer: much more relevant during lockdowns than at any other time. 136 00:07:27,380 --> 00:07:28,220 Michael Thompson: Pyjama fashion? 137 00:07:29,070 --> 00:07:31,250 Sean Aylmer: Have you not picked up new pyjamas, Michael? 138 00:07:31,540 --> 00:07:34,200 Michael Thompson: I actually have. I wasn't going to admit that. Have you? 139 00:07:34,570 --> 00:07:35,140 Sean Aylmer: Two pairs. 140 00:07:35,790 --> 00:07:39,119 Michael Thompson: All right, let's leave that one alone. The corporate watchdog 141 00:07:39,120 --> 00:07:42,340 Michael Thompson: has warned against pump and dump schemes. There was actually 142 00:07:42,340 --> 00:07:46,100 Michael Thompson: one earlier this month when a tiny gold miner Australasian Gold 143 00:07:46,160 --> 00:07:50,369 Michael Thompson: jumped more than 80% in 20 minutes. Sean for the uninitiated, 144 00:07:50,470 --> 00:07:52,930 Michael Thompson: what exactly is a pump and dump scheme? 145 00:07:53,160 --> 00:07:57,000 Sean Aylmer: Well, it's exactly how it sounds. Investors buy a stack 146 00:07:57,000 --> 00:08:00,640 Sean Aylmer: of stock, go to investor websites and social media feeds, 147 00:08:01,090 --> 00:08:03,910 Sean Aylmer: at best promote the stock, at worst actually tell lies 148 00:08:03,910 --> 00:08:06,680 Sean Aylmer: about it to push its price higher, then once the 149 00:08:06,680 --> 00:08:10,480 Sean Aylmer: price rises, they sell out, making a tidy little profit. 150 00:08:10,870 --> 00:08:14,990 Sean Aylmer: The Australian Securities and Investments Commission isn't happy. The regulator 151 00:08:14,990 --> 00:08:18,610 Sean Aylmer: warned that punters using social media to ramp up stocks 152 00:08:18,910 --> 00:08:20,830 Sean Aylmer: face jail time, and they deserve it too. 153 00:08:21,530 --> 00:08:24,110 Michael Thompson: I mentioned the one that happened earlier this month with 154 00:08:24,170 --> 00:08:27,210 Michael Thompson: Australasian Gold. Does it actually happen often though? 155 00:08:27,550 --> 00:08:29,830 Sean Aylmer: Well, it's happening more often. In fact, there was a 156 00:08:29,830 --> 00:08:33,860 Sean Aylmer: case yesterday, Aura Energy is the stock. It's been suspended 157 00:08:33,860 --> 00:08:37,650 Sean Aylmer: from trading. It re-entered the market yesterday. Its share price 158 00:08:37,650 --> 00:08:43,650 Sean Aylmer: went from 0.3 of $0.01 cent to $0.27 cents. That's more than 8,000%. 159 00:08:44,150 --> 00:08:46,860 Sean Aylmer: It had been on pump and dump websites ahead of 160 00:08:46,860 --> 00:08:49,240 Sean Aylmer: the relisting so it's a pretty good example. It is 161 00:08:49,240 --> 00:08:51,610 Sean Aylmer: criminal behaviour and I hope ASIC (Australian Securities and Investments Commission) throws the book at them. 162 00:08:51,950 --> 00:08:54,290 Michael Thompson: Yeah, that's extraordinary. I completely agree with you on that 163 00:08:54,290 --> 00:08:58,170 Michael Thompson: one. And what's the story about a massive cable link 164 00:08:58,170 --> 00:09:01,900 Michael Thompson: between the Northern Territory and Singapore to provide clean energy? 165 00:09:02,290 --> 00:09:04,460 Sean Aylmer: These stories amaze me. Not just the numbers, but the 166 00:09:04,460 --> 00:09:09,070 Sean Aylmer: science behind them. It's beyond my realm of understanding. So 167 00:09:09,320 --> 00:09:12,080 Sean Aylmer: the Indonesian government has backed a plan known as the 168 00:09:12,150 --> 00:09:15,790 Sean Aylmer: Australia–Asia Power Link to build a four and a half 169 00:09:15,790 --> 00:09:20,900 Sean Aylmer: thousand kilometre underwater cable to deliver energy to Singapore from 170 00:09:20,900 --> 00:09:24,980 Sean Aylmer: Australia via Indonesia. It involves a massive solar farm near 171 00:09:25,000 --> 00:09:29,610 Sean Aylmer: Tennant Creek in the Northern Territory. That farm generates renewable energy, 172 00:09:29,809 --> 00:09:32,750 Sean Aylmer: which will be exported to Singapore through the cable. There'll 173 00:09:32,750 --> 00:09:36,760 Sean Aylmer: be massive batteries to ensure reliability of supply. And the 174 00:09:36,760 --> 00:09:39,660 Sean Aylmer: whole thing will cost around $30 billion. It's backed by 175 00:09:39,660 --> 00:09:42,820 Sean Aylmer: Andrew Forrest of Fortescue Metals fame and Mike Cannon- Brookes 176 00:09:42,820 --> 00:09:45,090 Sean Aylmer: from Atlassian. Now those two are the second and fifth 177 00:09:45,210 --> 00:09:48,130 Sean Aylmer: richest Australians. So they're putting their money where their mouth 178 00:09:48,130 --> 00:09:51,290 Sean Aylmer: is because they're both great supporters of the environment. It 179 00:09:51,290 --> 00:09:54,610 Sean Aylmer: will be the largest renewable energy project in the world, 180 00:09:54,610 --> 00:09:56,680 Sean Aylmer: still a way to go, but wow, good luck to them. 181 00:10:00,890 --> 00:10:03,740 Michael Thompson: So Sean, what's making headlines in today's news media? 182 00:10:04,070 --> 00:10:07,339 Sean Aylmer: The media this morning is reporting that Treasurer Josh Frydenberg 183 00:10:07,559 --> 00:10:10,880 Sean Aylmer: has thrown his support behind the adoption of net zero 184 00:10:10,880 --> 00:10:15,219 Sean Aylmer: emissions by 2050, warning that unless Australia moves, capital markets 185 00:10:15,220 --> 00:10:18,470 Sean Aylmer: will penalise the country, pushing up interest rates on everything 186 00:10:18,470 --> 00:10:22,750 Sean Aylmer: from home and business loans through to infrastructure investments. And 187 00:10:22,750 --> 00:10:25,400 Sean Aylmer: there are plenty of tributes to John Elliot this morning, 188 00:10:25,400 --> 00:10:30,670 Sean Aylmer: the outspoken, mostly politically incorrect, larger than life Melbourne businessmen 189 00:10:30,670 --> 00:10:33,969 Sean Aylmer: who made, lost, and made, a fortune, who at different 190 00:10:33,970 --> 00:10:36,870 Sean Aylmer: times was boss of the Federal Liberal Party and chair 191 00:10:36,870 --> 00:10:40,970 Sean Aylmer: of Carlton Football Club and made Fosters Beer a global brand. Vale. 192 00:10:42,170 --> 00:10:45,230 Michael Thompson: Running through some of the other stories around today. Energy 193 00:10:45,230 --> 00:10:47,920 Michael Thompson: Australia will bring forward the closure of its Mount Piper 194 00:10:47,920 --> 00:10:51,880 Michael Thompson: coal power plant in New South Wales to 2028, 2029. It's 195 00:10:51,880 --> 00:10:54,510 Michael Thompson: part of the group's efforts to reduce its carbon emissions. 196 00:10:54,940 --> 00:10:57,260 Michael Thompson: Earlier in the year, it brought forward the closure date 197 00:10:57,260 --> 00:10:59,219 Michael Thompson: of its Yallourn Power Station in Victoria. 198 00:10:59,610 --> 00:11:02,720 Sean Aylmer: Prime Minister Scott Morrison said the US Congress had given 199 00:11:02,720 --> 00:11:07,660 Sean Aylmer: overwhelming support to the AUKUS military intelligence alliance, my favourite 200 00:11:07,660 --> 00:11:11,179 Sean Aylmer: acronym this week, AUKUS. That's the alliance between the US, UK, 201 00:11:11,179 --> 00:11:14,590 Sean Aylmer: and Australia. He certainly is one happy PM at the moment, Michael. 202 00:11:14,809 --> 00:11:17,740 Michael Thompson: He certainly is. Now News Corp's share price jumped more than 7% 203 00:11:17,740 --> 00:11:21,429 Michael Thompson: after the media empire run by Rupert Murdoch said it 204 00:11:21,429 --> 00:11:25,070 Michael Thompson: would double its share buyback program. When companies buy back 205 00:11:25,070 --> 00:11:28,209 Michael Thompson: shares earnings are spread among fewer shares, hence the price rises. 206 00:11:28,630 --> 00:11:31,329 Michael Thompson: The group is also on the lookout for acquisitions. News 207 00:11:31,330 --> 00:11:35,180 Michael Thompson: Corp has done well, and its share price is up 75% 208 00:11:35,270 --> 00:11:36,520 Michael Thompson: since late October. 209 00:11:36,520 --> 00:11:40,530 Sean Aylmer: It really is interesting how News Corp and Nine Entertainment, 210 00:11:40,730 --> 00:11:43,280 Sean Aylmer: those old media companies, have actually been some of the 211 00:11:43,280 --> 00:11:46,900 Sean Aylmer: best performers over the last 12 months or so. Brickworks, 212 00:11:46,970 --> 00:11:51,000 Sean Aylmer: which makes bricks, said sales had fallen 80% as a 213 00:11:51,000 --> 00:11:53,880 Sean Aylmer: result of the two week's snap lockdown imposed on the 214 00:11:53,880 --> 00:11:57,440 Sean Aylmer: Victorian construction sector. Now while demand for tiles and bricks 215 00:11:57,440 --> 00:12:00,590 Sean Aylmer: in non- lockdown states grows, it isn't so good in 216 00:12:00,590 --> 00:12:04,020 Sean Aylmer: New South Wales or Victoria. The group announced a 20% drop in 217 00:12:04,020 --> 00:12:05,979 Sean Aylmer: profit for the 12 months at the end of July 218 00:12:05,980 --> 00:12:06,540 Sean Aylmer: yesterday. 219 00:12:06,800 --> 00:12:10,260 Michael Thompson: Brickworks. I love a company whose name tells you exactly 220 00:12:10,260 --> 00:12:10,850 Michael Thompson: what it does. 221 00:12:10,970 --> 00:12:12,970 Sean Aylmer: You do. So, this next story, which I think you're 222 00:12:12,970 --> 00:12:15,760 Sean Aylmer: going to tell us about, is Bureau of Statistics, which 223 00:12:15,760 --> 00:12:17,790 Sean Aylmer: probably meets that criteria. 224 00:12:17,990 --> 00:12:20,390 Michael Thompson: It certainly does. So the Bureau of Statistics is one of my 225 00:12:20,390 --> 00:12:23,970 Michael Thompson: favourite bureaus. Now the figures from the Bureau show that 226 00:12:23,970 --> 00:12:27,640 Michael Thompson: household wealth rose by 5.8% during the June quarter hitting 227 00:12:27,640 --> 00:12:34,490 Michael Thompson: a record $13.3 trillion. That includes property, superannuation, investments, and all 228 00:12:34,490 --> 00:12:37,120 Michael Thompson: kinds of assets. Of course, it does make sense that 229 00:12:37,120 --> 00:12:40,200 Michael Thompson: the rise was mostly because of soaring house prices. 230 00:12:41,020 --> 00:12:44,530 Sean Aylmer: Exactly. And just a quick one, Michael. Canadian giant Brookfield 231 00:12:44,760 --> 00:12:48,640 Sean Aylmer: made a $9.6 billion bid for energy group AusNet Services. We've spoken 232 00:12:48,640 --> 00:12:50,880 Sean Aylmer: about that in the last couple of days. It was 233 00:12:50,880 --> 00:12:55,110 Sean Aylmer: granted exclusive due diligence. APA Group then came in and 234 00:12:55,110 --> 00:12:59,140 Sean Aylmer: offered $9.9 billion, more, but of course, it's locked out of 235 00:12:59,140 --> 00:13:03,040 Sean Aylmer: due diligence. APA yesterday went to The Takeovers Panel saying 236 00:13:03,040 --> 00:13:05,569 Sean Aylmer: it should be allowed to get a look at the books. 237 00:13:06,090 --> 00:13:09,090 Sean Aylmer: That's in the best interest of shareholders according to APA, 238 00:13:09,090 --> 00:13:11,240 Sean Aylmer: so that one is a fight in the making. 239 00:13:11,490 --> 00:13:14,410 Michael Thompson: All right, now what's the key overseas news this morning, Sean? 240 00:13:14,640 --> 00:13:17,330 Sean Aylmer: US President Joe Biden has called on richer countries to 241 00:13:17,330 --> 00:13:21,750 Sean Aylmer: expand the production and availability of coronavirus vaccines and treatments. 242 00:13:22,070 --> 00:13:24,850 Sean Aylmer: He wants 70% of the globe to be vaccinated by this 243 00:13:24,850 --> 00:13:28,170 Sean Aylmer: time next year. Ambitious, I'd say. Of course, at the 244 00:13:28,170 --> 00:13:31,150 Sean Aylmer: same time, the US is also pushing that people over 245 00:13:31,150 --> 00:13:34,070 Sean Aylmer: the age of 65 get a third jab of some 246 00:13:34,070 --> 00:13:36,390 Sean Aylmer: of these vaccines. So on the one hand, they're saying 247 00:13:36,390 --> 00:13:39,420 Sean Aylmer: everyone should actually help the poorer nations and on the other, 248 00:13:39,420 --> 00:13:42,980 Sean Aylmer: they're pretty much looking after themselves. And the World Health Organization 249 00:13:42,980 --> 00:13:47,360 Sean Aylmer: has recommended tighter limits for air pollutants. Air pollution is 250 00:13:47,360 --> 00:13:51,640 Sean Aylmer: the world's fourth leading cause of death, mostly because gases 251 00:13:51,640 --> 00:13:55,929 Sean Aylmer: and tiny particles travel into human bodies, particularly lungs, and 252 00:13:55,929 --> 00:13:59,050 Sean Aylmer: can enter bloodstreams and cause damage to cells. 253 00:13:59,530 --> 00:14:02,339 Michael Thompson: Now, up next is the Daily Interview. And today, Sean, 254 00:14:02,340 --> 00:14:06,500 Michael Thompson: you're talking to Michael Pillemer, the Chief Executive of PPS Mutual. 255 00:14:06,750 --> 00:14:09,990 Michael Thompson: The life insurance industry copped an absolute hammering in the 256 00:14:09,990 --> 00:14:12,390 Michael Thompson: Banking Royal Commission, so I'm looking forward to hearing what 257 00:14:12,390 --> 00:14:13,130 Michael Thompson: Michael says. 258 00:14:13,480 --> 00:14:17,110 Sean Aylmer: Yeah, he's an interesting interview because Michael talks about the 259 00:14:17,110 --> 00:14:19,300 Sean Aylmer: sector in a way that I haven't thought much about 260 00:14:19,300 --> 00:14:23,130 Sean Aylmer: it. And it's reinventing itself, actually almost rising from 261 00:14:23,130 --> 00:14:25,910 Sean Aylmer: the ashes. It started before the banking Royal Commission, but 262 00:14:26,120 --> 00:14:29,130 Sean Aylmer: some of the dreadful stories out of that Commission brought 263 00:14:29,130 --> 00:14:31,520 Sean Aylmer: to life some of the things that the industry was 264 00:14:31,520 --> 00:14:33,820 Sean Aylmer: doing. So yeah, it's well worth a listen. 265 00:14:34,140 --> 00:14:36,370 Michael Thompson: Yeah, absolutely. That's up next in the Fear and Greed 266 00:14:36,370 --> 00:14:40,760 Michael Thompson: playlist on your podcast platform or at fearandgreed.com.au. Thank you 267 00:14:40,760 --> 00:14:41,470 Michael Thompson: very much, Sean. 268 00:14:41,820 --> 00:14:42,910 Sean Aylmer: Thank you, Michael. Have a great day. 269 00:14:43,130 --> 00:14:46,100 Michael Thompson: It's Friday, the 24th of September. Thanks for your company. 270 00:14:46,130 --> 00:14:48,250 Michael Thompson: Make sure you're following the podcast so you get it 271 00:14:48,320 --> 00:14:51,479 Michael Thompson: every morning and join us online on Twitter, LinkedIn and 272 00:14:51,480 --> 00:14:54,380 Michael Thompson: Facebook. I'm Michael Thompson, and that was Fear and Greed. 273 00:14:54,460 --> 00:14:55,150 Michael Thompson: Enjoy your day.