1 00:00:06,400 --> 00:00:09,440 Speaker 1: Welcome to Fear and Greed business news you can use Today. 2 00:00:09,600 --> 00:00:12,319 Speaker 1: Economic growth slows to a crawl, putting pressure on the 3 00:00:12,360 --> 00:00:15,480 Speaker 1: Reserve Bank to cut interest rates, The value of Australia's 4 00:00:15,520 --> 00:00:19,279 Speaker 1: biggest company, the Commonwealth Bank, pushes beyond three hundred billion 5 00:00:19,320 --> 00:00:22,400 Speaker 1: dollars for the first time, and Virgin Australia set to 6 00:00:22,480 --> 00:00:26,079 Speaker 1: list on the ASX plus, Meta goes nuclear, as big 7 00:00:26,120 --> 00:00:29,920 Speaker 1: Tech searches for green energy sources. And Elon Musk hammers 8 00:00:29,960 --> 00:00:33,239 Speaker 1: Donald Trump's tax cuts. It is Thursday, the fifth of 9 00:00:33,360 --> 00:00:36,400 Speaker 1: June twenty twenty five. I'm Michael Thompson and good morning 10 00:00:36,479 --> 00:00:37,199 Speaker 1: Sean Aylmer. 11 00:00:37,360 --> 00:00:38,839 Speaker 2: Good morning Michael, Sean. 12 00:00:39,280 --> 00:00:42,519 Speaker 1: The Fear and Greed newsletter out every morning by six am. 13 00:00:42,840 --> 00:00:45,800 Speaker 1: If you haven't signed up for it yet, entirely free. 14 00:00:45,600 --> 00:00:49,200 Speaker 2: What are you doing exactly? Sign up at Fearangreed dot 15 00:00:49,240 --> 00:00:53,320 Speaker 2: com show notes go get it. Yeah, well worth it. 16 00:00:53,320 --> 00:00:55,240 Speaker 1: It is that easy. It's in your inbox by six 17 00:00:55,320 --> 00:00:58,040 Speaker 1: great little cheat sheet to start the day Fearangreed dot 18 00:00:58,040 --> 00:01:01,160 Speaker 1: com dot Au and I will, as Sean said in 19 00:01:01,200 --> 00:01:04,039 Speaker 1: the show notes, for ease of access. The main story 20 00:01:04,080 --> 00:01:07,080 Speaker 1: this morning show on the Australian economy is barely growing. 21 00:01:07,160 --> 00:01:10,959 Speaker 1: Running at about half the long term average as businesses 22 00:01:11,000 --> 00:01:14,080 Speaker 1: hold back on investing and consumers cut back on spending. 23 00:01:14,200 --> 00:01:18,399 Speaker 2: The Australian Bureau of Statistics national accounts released yesterday show 24 00:01:18,520 --> 00:01:22,399 Speaker 2: the economy expanded by just zero point two percent in 25 00:01:22,480 --> 00:01:26,679 Speaker 2: the March quarter, well below expectations, pushing the annual growth 26 00:01:26,760 --> 00:01:29,560 Speaker 2: rate till the end of March to one point three percent. 27 00:01:29,880 --> 00:01:32,440 Speaker 2: That ain't real good. The key takeouts government spending is 28 00:01:32,440 --> 00:01:36,639 Speaker 2: pulled back, particularly among the States. Household spending was definitely higher, 29 00:01:37,080 --> 00:01:40,720 Speaker 2: but not much higher, and they're spending money on essentials 30 00:01:40,760 --> 00:01:44,200 Speaker 2: like food and rent. That's what's contributing to growth. If 31 00:01:44,200 --> 00:01:47,520 Speaker 2: you take out all these statistical anomalies and that household 32 00:01:47,600 --> 00:01:50,440 Speaker 2: spending with only about point two percent, so it isn't 33 00:01:50,480 --> 00:01:54,360 Speaker 2: doing very well. Business investment is also rising, like household spending, 34 00:01:54,720 --> 00:01:58,920 Speaker 2: very sluggish. Most of the growth in investment is coming 35 00:01:58,920 --> 00:02:02,880 Speaker 2: in new buildings stuff like vehicles, office equipment, electrical items. 36 00:02:02,920 --> 00:02:06,240 Speaker 2: Investment in that sort of stuff is actually falling tough 37 00:02:06,320 --> 00:02:09,560 Speaker 2: quarter on the trade front. In fact, net trade detracted 38 00:02:10,000 --> 00:02:12,760 Speaker 2: from growth, in part because of a smaller than average 39 00:02:12,800 --> 00:02:16,360 Speaker 2: rise in the number of international students coming into Australia 40 00:02:16,520 --> 00:02:20,160 Speaker 2: and also extreme whether events reduced growth, especially in mining, 41 00:02:20,160 --> 00:02:23,760 Speaker 2: shipping and tourism. The all important growth per capita, so 42 00:02:23,840 --> 00:02:27,960 Speaker 2: how much we're expanding per person fell zero point two percent. 43 00:02:28,440 --> 00:02:32,800 Speaker 2: That's yet another quarter where growth per capita has fallen. 44 00:02:34,120 --> 00:02:38,120 Speaker 2: The national accounts also shows productivity. We talk about productivity 45 00:02:38,160 --> 00:02:42,240 Speaker 2: all the time. Bad news there as well. It was unchanged. 46 00:02:42,400 --> 00:02:47,880 Speaker 2: It's still stuck at twenty sixteen levels. So in the 47 00:02:47,919 --> 00:02:50,960 Speaker 2: mix master, Michael and the mix master. While bad weather 48 00:02:51,040 --> 00:02:54,600 Speaker 2: weigh on the March quarter result diferentely higher in gest rates, 49 00:02:54,639 --> 00:02:57,840 Speaker 2: and fears about Donald Trump and what he's doing is 50 00:02:57,880 --> 00:02:58,840 Speaker 2: weighing even heavier. 51 00:02:59,440 --> 00:03:02,840 Speaker 1: Okay, all right, two parts this to this that I 52 00:03:02,840 --> 00:03:04,960 Speaker 1: think we need to look at the reaction. What was 53 00:03:04,960 --> 00:03:08,800 Speaker 1: there the broader reaction to this, like and all eyes 54 00:03:08,800 --> 00:03:10,560 Speaker 1: were on this in terms of what the Reserve Bank 55 00:03:10,639 --> 00:03:13,079 Speaker 1: is going to make of it and what it means 56 00:03:13,120 --> 00:03:14,480 Speaker 1: for interest rates exactly. 57 00:03:14,520 --> 00:03:16,520 Speaker 2: So Treasure Jim Chalmers came out. He said, is quite 58 00:03:16,560 --> 00:03:19,760 Speaker 2: a mystic about this Dralian economy, notwithstanding it grew by 59 00:03:19,840 --> 00:03:21,640 Speaker 2: zero point two percent during the quarter. 60 00:03:21,720 --> 00:03:23,400 Speaker 1: He's got to say that, right, he can't be talking 61 00:03:23,440 --> 00:03:24,239 Speaker 1: down the economy. 62 00:03:24,320 --> 00:03:26,320 Speaker 2: Yeah, he can't. I mean he did conceive that productivity 63 00:03:26,360 --> 00:03:31,359 Speaker 2: needs to improve, but he talked it up generally economists, 64 00:03:31,600 --> 00:03:34,720 Speaker 2: I think the consensus is there wasn't much good in 65 00:03:34,840 --> 00:03:38,600 Speaker 2: yesterday's report. A number are now talking about a rate 66 00:03:38,680 --> 00:03:41,520 Speaker 2: cut when the Reserve Bank Board meets next month. In fact, 67 00:03:41,520 --> 00:03:43,520 Speaker 2: bond investors have priced in a better than eighty percent 68 00:03:43,600 --> 00:03:46,480 Speaker 2: chance of a rate cut in July, which is actually 69 00:03:46,520 --> 00:03:50,280 Speaker 2: before the next quarter inflation data point is released. We've 70 00:03:50,320 --> 00:03:52,600 Speaker 2: been worrying about that forever, well, the last two or 71 00:03:52,600 --> 00:03:55,920 Speaker 2: three years, to be perfectly else and now it just 72 00:03:55,960 --> 00:03:59,560 Speaker 2: doesn't seem quite as important as economic growth, which is 73 00:03:59,560 --> 00:04:02,840 Speaker 2: a good scene into our interview today because our interviewee 74 00:04:02,920 --> 00:04:05,680 Speaker 2: National Australian Bank Chief economist Sally All actually thinks there 75 00:04:05,720 --> 00:04:10,480 Speaker 2: will be three rate cuts this year, July, August and November. 76 00:04:11,080 --> 00:04:13,680 Speaker 2: And she was a bit of an outlier before the 77 00:04:13,760 --> 00:04:16,039 Speaker 2: last interest rate cut simply because she thought they should 78 00:04:16,040 --> 00:04:19,000 Speaker 2: have gone fifty basis points, not twenty five basis points. 79 00:04:19,400 --> 00:04:22,559 Speaker 2: Subsequent to the decision being made in the board minutes 80 00:04:22,560 --> 00:04:24,640 Speaker 2: from last week, we realized how close they were to 81 00:04:24,640 --> 00:04:27,000 Speaker 2: fifty basis points. So she's got a pretty good call 82 00:04:27,040 --> 00:04:28,040 Speaker 2: on the economy at the moment. 83 00:04:28,160 --> 00:04:31,480 Speaker 1: Yeah, it's a really good conversation and Sally's been in 84 00:04:31,480 --> 00:04:34,840 Speaker 1: the job, was the chief economists role at NAB now 85 00:04:34,880 --> 00:04:40,360 Speaker 1: for a few months and really really sharp commentary, so 86 00:04:40,400 --> 00:04:42,200 Speaker 1: it is a fantastic one to listen to it. It's 87 00:04:42,240 --> 00:04:44,360 Speaker 1: coming up after the show, so stick around for that one. 88 00:04:44,680 --> 00:04:48,159 Speaker 1: It was a good day in equity markets locally shown 89 00:04:48,200 --> 00:04:52,160 Speaker 1: with the value of Commonwealth Bank pushing past three hundred 90 00:04:52,360 --> 00:04:55,160 Speaker 1: billion dollars for the first time on a milestone. 91 00:04:55,200 --> 00:04:58,239 Speaker 2: Not bad. It's share price hit one hundred and eighty dollars, 92 00:04:58,600 --> 00:05:00,480 Speaker 2: then went up to one hundred and eighty one dollars 93 00:05:00,480 --> 00:05:03,600 Speaker 2: and thirty two cents after lunchtime closing. 94 00:05:04,000 --> 00:05:06,160 Speaker 1: This is it doesn't just keep going. 95 00:05:06,240 --> 00:05:09,080 Speaker 2: Yeah, it doesn't know. Gravity closed at one hundred and 96 00:05:09,120 --> 00:05:11,280 Speaker 2: eighty dollars and twenty seven cents, giving the bank a 97 00:05:11,360 --> 00:05:15,800 Speaker 2: market valuation of three hundred and one point seven billion dollars, 98 00:05:16,000 --> 00:05:19,680 Speaker 2: its share prices up nearly fifty percent over the past year. 99 00:05:19,920 --> 00:05:23,960 Speaker 2: Quite phenomenal. We've said it before, it's worth repeating. Commonwealth 100 00:05:24,600 --> 00:05:28,640 Speaker 2: at three hundred and one billion dollars is worth just 101 00:05:28,880 --> 00:05:31,640 Speaker 2: under the combined values of the other three big banks, 102 00:05:31,720 --> 00:05:35,159 Speaker 2: National Australian Bank, Westpac, and a Z. They're worth three 103 00:05:35,240 --> 00:05:39,880 Speaker 2: hundred and twenty billion dollars combined. Quite incredible. That was 104 00:05:40,000 --> 00:05:42,279 Speaker 2: definitely the standout stock on a pretty good day, with 105 00:05:42,480 --> 00:05:46,000 Speaker 2: SMPAX two hundred closing up nearly one percent to eighty 106 00:05:46,080 --> 00:05:49,200 Speaker 2: five hundred and forty two points. That's just fourteen points 107 00:05:49,760 --> 00:05:53,720 Speaker 2: below the all time high of February. Energy. Consumer discretionery 108 00:05:53,720 --> 00:05:56,400 Speaker 2: in financials did best. Consumer stables did worst. Of the 109 00:05:56,440 --> 00:05:59,360 Speaker 2: eleven sectors on the AX two hundred. Best on the 110 00:05:59,440 --> 00:06:01,880 Speaker 2: day Bain Find Our Pay Later group ZIP go up 111 00:06:01,960 --> 00:06:04,159 Speaker 2: fourteen percent in a particular news out it just did 112 00:06:04,279 --> 00:06:07,360 Speaker 2: very well. Worst was New Farm, which fell five percent. 113 00:06:07,920 --> 00:06:10,839 Speaker 1: Plenty of other winners also a strong job starter in 114 00:06:10,839 --> 00:06:13,600 Speaker 1: the US, and that helped commodity prices which in turn 115 00:06:13,720 --> 00:06:14,320 Speaker 1: helped a lot of. 116 00:06:14,279 --> 00:06:17,200 Speaker 2: Miners exactly right. Higher metal prices helped push b HP 117 00:06:17,320 --> 00:06:19,280 Speaker 2: and four toy s qu metals higher. All prices are 118 00:06:19,279 --> 00:06:21,880 Speaker 2: on the rise. That helped Woodside and Santas. The local 119 00:06:21,920 --> 00:06:25,120 Speaker 2: aluminium stocks al Coola and South thirty two did well. 120 00:06:25,440 --> 00:06:28,239 Speaker 2: That came after Donald Trump pushed ahead with his fifty 121 00:06:28,240 --> 00:06:33,599 Speaker 2: percent steel and aluminium tariffs that includes on Australian businesses. However, 122 00:06:33,640 --> 00:06:36,560 Speaker 2: there was a carve out for UK steel in aluminium 123 00:06:36,600 --> 00:06:39,000 Speaker 2: that'll stay at twenty five percent. So there are hopes 124 00:06:39,520 --> 00:06:42,200 Speaker 2: in Australia that our companies will also get a carve 125 00:06:42,240 --> 00:06:43,200 Speaker 2: out similar to that. 126 00:06:43,800 --> 00:06:46,320 Speaker 1: And the uranium stocks as well have had a pretty 127 00:06:46,320 --> 00:06:50,120 Speaker 1: good run lately. A good day yesterday after Meta so 128 00:06:50,279 --> 00:06:52,760 Speaker 1: that it wants to increase its use of nuclear power. 129 00:06:53,000 --> 00:06:55,400 Speaker 2: Metas signed a twenty year contract to buy nuclear power 130 00:06:55,400 --> 00:06:58,719 Speaker 2: from a plant in Illinois owned by Constellation that it 131 00:06:58,760 --> 00:07:02,760 Speaker 2: begins in twenty twenty seven. So Microsoft, Amazon, and Alphabet 132 00:07:03,080 --> 00:07:07,120 Speaker 2: parent Google all have signed similar deals. In fact, remember 133 00:07:07,200 --> 00:07:10,520 Speaker 2: Microsoft did a deal with Constellation earlier in the year 134 00:07:10,520 --> 00:07:13,760 Speaker 2: to restart the Three Mile Island nuclear power plant, most 135 00:07:13,760 --> 00:07:17,240 Speaker 2: famous for the worst commercial nuclear power accident in US 136 00:07:17,320 --> 00:07:19,920 Speaker 2: history back in nineteen seventy nine. Plenty of songs written 137 00:07:19,960 --> 00:07:24,080 Speaker 2: about that one. Basically, big technoally more power for AI 138 00:07:24,240 --> 00:07:26,560 Speaker 2: and data centers. At the same time, they've got long 139 00:07:26,680 --> 00:07:30,440 Speaker 2: term goals to cut greenhouse gas emissions. Nuclear provides a solution. 140 00:07:31,400 --> 00:07:35,360 Speaker 2: States in the States, as in twenty five of the 141 00:07:35,400 --> 00:07:39,240 Speaker 2: fifty states in the United States are falling over themselves 142 00:07:39,360 --> 00:07:43,160 Speaker 2: to support nuclear energy. Twenty five states of past legislation 143 00:07:43,240 --> 00:07:45,640 Speaker 2: to support the industry. They've been over two hundred bills 144 00:07:45,680 --> 00:07:49,360 Speaker 2: introduced this year to support nuclear energy. This is, according 145 00:07:49,400 --> 00:07:53,840 Speaker 2: to the Nuclear Energy Institute, quite amazing. How suddenly nuclear 146 00:07:53,920 --> 00:07:56,920 Speaker 2: the US is open to nuclear, the Trump administration is 147 00:07:56,960 --> 00:08:00,840 Speaker 2: supporting it. That is helping our local uranium stocks, places 148 00:08:00,880 --> 00:08:03,400 Speaker 2: like Paladin, Yellow Boss Energy. 149 00:08:03,880 --> 00:08:06,720 Speaker 1: Isn't it interesting right the way that the weight that 150 00:08:06,760 --> 00:08:09,760 Speaker 1: some of these tech giants have, Right when Meta makes 151 00:08:09,760 --> 00:08:12,520 Speaker 1: a decision like this to go for nuclear, it's the 152 00:08:12,520 --> 00:08:15,560 Speaker 1: equivalent of like Australia, for instance, deciding it was going 153 00:08:15,600 --> 00:08:19,000 Speaker 1: to do here. We have companies that are able to 154 00:08:19,040 --> 00:08:21,600 Speaker 1: put that much weight behind an industry individually. 155 00:08:21,720 --> 00:08:22,960 Speaker 2: Yeah, quite phenomenal. 156 00:08:23,080 --> 00:08:26,000 Speaker 1: Yeah, Anyway, we've got plenty still to come. Sean big 157 00:08:26,120 --> 00:08:27,320 Speaker 1: night tonight. Are you excited? 158 00:08:27,600 --> 00:08:29,480 Speaker 2: I am excited. I'm a little nervous, to be honest. 159 00:08:29,600 --> 00:08:31,240 Speaker 1: It's going to be fun. We are doing our first 160 00:08:31,320 --> 00:08:34,120 Speaker 1: ever live recording of the weekend edition, so have a 161 00:08:34,160 --> 00:08:38,160 Speaker 1: listen on Saturday when we publish the episode. You might 162 00:08:38,160 --> 00:08:41,800 Speaker 1: be able to hear the booze and jeers and cheers 163 00:08:42,120 --> 00:08:45,240 Speaker 1: of There'll be plenty of those. It's going to be 164 00:08:45,280 --> 00:08:47,680 Speaker 1: a good night. We're also launching my new novel called 165 00:08:47,760 --> 00:08:50,000 Speaker 1: All the Perfect Days. It's going to be good fun. 166 00:08:50,160 --> 00:08:51,559 Speaker 1: And if you. 167 00:08:51,520 --> 00:08:55,000 Speaker 2: Don't follow Michael on social media, so it's Michael Thompson author, 168 00:08:55,679 --> 00:08:58,839 Speaker 2: follow him on social media. It's great picks of him 169 00:08:58,960 --> 00:09:02,600 Speaker 2: in one of the large bookstores in front of his book. Yeah. 170 00:09:02,760 --> 00:09:06,200 Speaker 1: Yeah, I dropped by DIMIs yesterday and took a sneaky 171 00:09:06,240 --> 00:09:09,000 Speaker 1: selfie of myself. Didn't actually tell anyone I was there, 172 00:09:09,160 --> 00:09:13,200 Speaker 1: just crept in, very creepy really anyway, I will also 173 00:09:13,240 --> 00:09:14,800 Speaker 1: you know, I'm going to put it in the newsletter 174 00:09:14,840 --> 00:09:17,440 Speaker 1: this morning. Do it now? Why not? Okay, quick break, 175 00:09:17,440 --> 00:09:18,679 Speaker 1: We'll be back in a moment with the rest of 176 00:09:18,720 --> 00:09:29,280 Speaker 1: the day's business news. Sean Virgin Australia has set to 177 00:09:29,360 --> 00:09:31,960 Speaker 1: list on the ASX with an initial public offering of 178 00:09:32,000 --> 00:09:35,320 Speaker 1: about thirty percent of the company, meaning the total value 179 00:09:35,440 --> 00:09:38,479 Speaker 1: of Virgin is around two point three billion. 180 00:09:38,120 --> 00:09:41,840 Speaker 2: Dollars, undoubtedly one of the most anticipated floats on the ASEX. 181 00:09:41,880 --> 00:09:45,000 Speaker 2: Bain Capital bought Virgin out of administration during the COVID 182 00:09:45,080 --> 00:09:49,080 Speaker 2: nineteen pandemic last year. Katar took a cornerstone steak in 183 00:09:49,120 --> 00:09:52,400 Speaker 2: the airline. Once they get this float, so it's sort 184 00:09:52,400 --> 00:09:55,160 Speaker 2: of a partial float really, it's only about thirty percent 185 00:09:55,160 --> 00:09:58,160 Speaker 2: of it. Bain will own about forty percent, Katar twenty 186 00:09:58,160 --> 00:10:02,160 Speaker 2: three percent, management around eight The rest will be new shareholders. 187 00:10:02,960 --> 00:10:07,199 Speaker 2: While definitely well anticipated, the big unknown has been the price, 188 00:10:07,600 --> 00:10:11,480 Speaker 2: and at two dollars ninetyers share, it's relatively cheap compared 189 00:10:11,520 --> 00:10:14,640 Speaker 2: to Quantas. In fact, it's about thirty percent cheaper than Quantas. 190 00:10:14,840 --> 00:10:17,600 Speaker 1: We've been talking about this forever, right, at least since 191 00:10:17,679 --> 00:10:20,960 Speaker 1: beIN bought Virgin, because Bain was never buying Virgin to 192 00:10:21,040 --> 00:10:23,560 Speaker 1: operate an airline forever, right. This was always kind of 193 00:10:23,559 --> 00:10:25,400 Speaker 1: on the cards eventually, But why now? 194 00:10:25,679 --> 00:10:28,800 Speaker 2: So the stars have really aligned equity markets, as we've discussed, 195 00:10:28,840 --> 00:10:32,520 Speaker 2: training new record levels, notwithstanding whatever's going on in the US. 196 00:10:33,040 --> 00:10:35,959 Speaker 2: Good time to float is when your equity markets are strong. 197 00:10:36,320 --> 00:10:40,440 Speaker 2: The former boss of Virgin, Jane Hurdlacker, isn't a favorite 198 00:10:40,440 --> 00:10:42,959 Speaker 2: with investors. According to media reports, she's now going to 199 00:10:43,080 --> 00:10:46,319 Speaker 2: Endeavor Group. Oil prices are relatively low. We're seeing that 200 00:10:46,559 --> 00:10:48,680 Speaker 2: at the petrol pump now. Fuel, of course, is a 201 00:10:48,679 --> 00:10:51,440 Speaker 2: aviation fuel is a major cost of airlines. So the 202 00:10:51,520 --> 00:10:54,480 Speaker 2: actual accounts look pretty good at the moment, and tourism 203 00:10:54,600 --> 00:10:57,920 Speaker 2: demand is strong. If you if you want to see 204 00:10:57,960 --> 00:11:00,760 Speaker 2: evidence of that. Quantus has share prices up thirty five 205 00:11:00,800 --> 00:11:04,520 Speaker 2: percent since early April. Conditions are right for a float, 206 00:11:05,000 --> 00:11:06,920 Speaker 2: and Bane Capitol wants to take advantage of it. 207 00:11:07,280 --> 00:11:11,400 Speaker 1: Okay, Moving to politics now sewn, the new Federal Parliament 208 00:11:11,440 --> 00:11:14,080 Speaker 1: won't sit until late next month, but there's still plenty 209 00:11:14,280 --> 00:11:18,640 Speaker 1: going on in politics, including plans for European Commission President 210 00:11:18,760 --> 00:11:21,280 Speaker 1: Ursul of Ondalaan to visit Australia. 211 00:11:21,360 --> 00:11:23,720 Speaker 2: Trade Minister Don Farrell is in Paris this week for 212 00:11:23,760 --> 00:11:26,600 Speaker 2: his first face to face talks with the Europeans since 213 00:11:26,840 --> 00:11:30,600 Speaker 2: negotiations collapsed in October twenty twenty three. According to The 214 00:11:30,600 --> 00:11:33,440 Speaker 2: Thin Review, he told that that news organization that the 215 00:11:33,440 --> 00:11:35,800 Speaker 2: world has changed in Europe and Australia need to be 216 00:11:36,040 --> 00:11:38,679 Speaker 2: the adults in the room. Fondalaane has mooted a visit 217 00:11:38,760 --> 00:11:41,640 Speaker 2: in either late July or early August in anticipation of 218 00:11:41,640 --> 00:11:45,720 Speaker 2: signing a deal. Farrell also well signing a dell assuming 219 00:11:45,840 --> 00:11:48,760 Speaker 2: one's reached, but we'll seere we go. Farrell also met 220 00:11:48,800 --> 00:11:52,480 Speaker 2: with his US counterpart, Jemison Grea. Farrell said that because 221 00:11:52,480 --> 00:11:55,400 Speaker 2: Trump's tariff on Australia is only ten percent, the US 222 00:11:55,440 --> 00:11:58,640 Speaker 2: hasn't sent our country a letter asking for a best 223 00:11:58,720 --> 00:12:02,520 Speaker 2: offer for a trade deal. Meanwhile, Opposition leader Susan Lee 224 00:12:02,600 --> 00:12:05,800 Speaker 2: has taken a softer tone compared to Peter Dutton, her predecessor, 225 00:12:06,040 --> 00:12:08,480 Speaker 2: on the issue of Donald Trump's tariff, saying the Coalition 226 00:12:08,559 --> 00:12:11,400 Speaker 2: will support the government's efforts to secure an exemption for 227 00:12:11,480 --> 00:12:14,800 Speaker 2: Australian steel and aluminium. Closer to home, Papula and New Guineas, 228 00:12:14,800 --> 00:12:18,160 Speaker 2: Defense Minister Billy Joseph says while his country is building 229 00:12:18,160 --> 00:12:22,760 Speaker 2: closer economic ties with China, its closest defense relationship is 230 00:12:22,760 --> 00:12:25,480 Speaker 2: still with Australia. He said, and I quote, when PNG 231 00:12:25,640 --> 00:12:28,840 Speaker 2: is secure, Australia is secure. When Australia re secure, PNGNG 232 00:12:29,000 --> 00:12:30,240 Speaker 2: is secure. End quote. 233 00:12:30,800 --> 00:12:34,160 Speaker 1: And just quickly, the final undeclared seat in the federal 234 00:12:34,200 --> 00:12:37,040 Speaker 1: election will go to a Teal, meaning another loss for 235 00:12:37,080 --> 00:12:37,640 Speaker 1: the Liberals. 236 00:12:37,960 --> 00:12:40,480 Speaker 2: This is the North Shore seat of Bradfield, the Australian 237 00:12:40,480 --> 00:12:46,040 Speaker 2: Electoral Commission yesterday said Nicolette Beal Nicolad Beal, Nicolette Bowle, 238 00:12:46,440 --> 00:12:48,679 Speaker 2: who's a Teal, so wouldn't be Bill the turtle. It's 239 00:12:48,679 --> 00:12:52,800 Speaker 2: Bowl the turtle anyway, the Commission says Nicolett Bowle has 240 00:12:52,840 --> 00:12:56,960 Speaker 2: won the once Blue Ribbon seat after a recount. She 241 00:12:57,120 --> 00:13:01,400 Speaker 2: beat Liberal candidate Giselle Capterian by justice twenty six votes 242 00:13:01,800 --> 00:13:05,199 Speaker 2: in one of the tightest elections in history. So at 243 00:13:05,240 --> 00:13:08,280 Speaker 2: the next parliament at this point, because no one would 244 00:13:08,280 --> 00:13:11,440 Speaker 2: be surprised if the Breadfield decision goes to court. But 245 00:13:11,520 --> 00:13:14,360 Speaker 2: let's say, as we stand at the moment, the next 246 00:13:14,360 --> 00:13:18,080 Speaker 2: parliament will include ninety four Labor MPs, forty three coalition MPs, 247 00:13:18,120 --> 00:13:20,360 Speaker 2: one each from the Greens, the Center Alliance and Katters 248 00:13:20,360 --> 00:13:22,520 Speaker 2: Australian Party, and ten independents. 249 00:13:22,800 --> 00:13:27,760 Speaker 1: Okay, turning to international News, now Sean and Elon Musk, Wow, 250 00:13:27,880 --> 00:13:31,840 Speaker 1: he has absolutely gone after Donald Trump's signature tax bill, 251 00:13:32,120 --> 00:13:35,760 Speaker 1: describing it as quote a disgusting abomination. 252 00:13:36,440 --> 00:13:39,560 Speaker 2: Right he don't hold back it on, No, no, clear, 253 00:13:39,600 --> 00:13:40,439 Speaker 2: that's what you really think. 254 00:13:40,440 --> 00:13:42,720 Speaker 1: It feels like this has been brewing for a little while. Right. 255 00:13:42,960 --> 00:13:47,040 Speaker 1: He derided the legislation in posts on X as a massive, 256 00:13:47,280 --> 00:13:52,800 Speaker 1: outrageous pork field congressional spending bill. He then added another quote, 257 00:13:52,880 --> 00:13:55,160 Speaker 1: shame on those who voted for it. You know you 258 00:13:55,200 --> 00:13:58,160 Speaker 1: did wrong, You know it? Wow? 259 00:13:58,400 --> 00:14:00,800 Speaker 2: Do you reckon there'll be Christmas cards between the two Well, 260 00:14:00,800 --> 00:14:02,000 Speaker 2: there could be you don't know. 261 00:14:01,960 --> 00:14:03,920 Speaker 1: You never knows. I mean we are, I mean we 262 00:14:03,960 --> 00:14:05,440 Speaker 1: are less than halfway through the year. 263 00:14:05,880 --> 00:14:08,720 Speaker 2: Yeah right, yes, a long way to Christmas. The aggressive 264 00:14:08,800 --> 00:14:12,520 Speaker 2: intervention by the billionaire comes at a really critical time 265 00:14:12,960 --> 00:14:17,080 Speaker 2: for what Trump calls his big, Beautiful Bill. It has 266 00:14:17,120 --> 00:14:20,160 Speaker 2: passed the House of Representatives narrowly. It needs to be 267 00:14:20,160 --> 00:14:23,040 Speaker 2: approved by the Senate if it's to become law. Now 268 00:14:23,040 --> 00:14:26,400 Speaker 2: Trump's pressuring Republican senators, who basically gets to worried it 269 00:14:26,440 --> 00:14:30,160 Speaker 2: cuts taxes, reduces social spending, and increases the federal debt. 270 00:14:30,280 --> 00:14:34,360 Speaker 2: We're talking trillions of dollars over several years. Hours before 271 00:14:34,520 --> 00:14:38,640 Speaker 2: Musk's comments on ex Trump attacked Republican Senator Rand Paul 272 00:14:38,680 --> 00:14:42,520 Speaker 2: who's a fiscal conservative. He doesn't like the bill. He 273 00:14:43,200 --> 00:14:45,800 Speaker 2: basically what he doesn't like is it raises a limit 274 00:14:45,880 --> 00:14:48,160 Speaker 2: on how much the federal government can borrow to five 275 00:14:48,480 --> 00:14:52,120 Speaker 2: trillion US dollars. Elon Musk, of course, the man who 276 00:14:52,360 --> 00:14:56,440 Speaker 2: ran DOGE until last week, Department of Government Efficiency. He 277 00:14:56,520 --> 00:14:59,560 Speaker 2: hates it, and he went to town on his former boss. 278 00:15:00,000 --> 00:15:01,360 Speaker 1: I know, we joke about the fact that that's what 279 00:15:01,440 --> 00:15:03,440 Speaker 1: Donald Trump is calling it, but that is actually its 280 00:15:03,520 --> 00:15:05,480 Speaker 1: official name, which I just I. 281 00:15:06,840 --> 00:15:09,560 Speaker 2: Find endlessly a beautiful bill, one. 282 00:15:09,760 --> 00:15:13,320 Speaker 1: Big beautiful bill act. That is what has been put 283 00:15:13,360 --> 00:15:19,920 Speaker 1: before Congress. One big beautiful bill act. It is extraordinary. Right. Anyway, 284 00:15:20,040 --> 00:15:22,640 Speaker 1: enough about Elon Musk and Donald Trump. The Dutch government 285 00:15:22,800 --> 00:15:26,640 Speaker 1: SEAN has collapsed, most likely ushering in a snap election 286 00:15:26,920 --> 00:15:31,400 Speaker 1: after anti Muslim politician Gert Wilders quit the right wing coalition, 287 00:15:31,600 --> 00:15:35,160 Speaker 1: accusing other parties are failing to back his tougher immigration policies. 288 00:15:35,440 --> 00:15:38,600 Speaker 2: This is really important because frustration with migration the high 289 00:15:38,600 --> 00:15:42,080 Speaker 2: cost of living is boosting the far right in different 290 00:15:42,120 --> 00:15:45,000 Speaker 2: parts of Europe. And this is a dealing with Russia 291 00:15:45,000 --> 00:15:48,640 Speaker 2: and an unpredictable in combative US president and Donald Trump. 292 00:15:48,880 --> 00:15:52,360 Speaker 2: So these sorts of things are really scaring the horses, 293 00:15:52,480 --> 00:15:56,200 Speaker 2: so to speak. Dutch Prime Minister Dick Schuf, an independent, 294 00:15:56,280 --> 00:16:01,760 Speaker 2: accused the political Maverick Wilders of irresponsibility and the other 295 00:16:01,760 --> 00:16:05,240 Speaker 2: coalition parties denied failing to support Wielders. According to Ruter's, 296 00:16:05,480 --> 00:16:09,080 Speaker 2: ministers in the cabinet from gids PVB party will also quit, 297 00:16:09,480 --> 00:16:12,640 Speaker 2: leaving others to continue as the caretaker and administration until 298 00:16:12,640 --> 00:16:16,360 Speaker 2: an election it's not likely to be held before October. 299 00:16:16,440 --> 00:16:19,720 Speaker 2: That means yet another large European economy kind of in 300 00:16:19,760 --> 00:16:22,480 Speaker 2: caretaker made for four or five months. Remember we've had 301 00:16:22,480 --> 00:16:26,120 Speaker 2: that in Germany up until very recently. So Europe is 302 00:16:26,240 --> 00:16:28,040 Speaker 2: really struggling to get itself together. 303 00:16:28,120 --> 00:16:30,120 Speaker 1: How long time to be in limbo? All right? Coming 304 00:16:30,160 --> 00:16:32,440 Speaker 1: up next is the Fear and Greed Daily Interview. NAB 305 00:16:32,520 --> 00:16:35,600 Speaker 1: Chief economist Sally Auld is our guest today. Thank you 306 00:16:35,720 --> 00:16:37,920 Speaker 1: very much, Sean, Thank you, Michael. It is Thursday, the 307 00:16:37,960 --> 00:16:40,440 Speaker 1: fifth of June twenty twenty five. Make sure you following 308 00:16:40,440 --> 00:16:43,240 Speaker 1: the podcast and please join us online on LinkedIn, Instagram, 309 00:16:43,240 --> 00:16:45,720 Speaker 1: ex TikTok and Facebook. I'm Michael Thompson and that was 310 00:16:45,760 --> 00:16:47,400 Speaker 1: Fear and Greed. Have a great day.