1 00:00:06,360 --> 00:00:08,719 Speaker 1: This is the weekend edition of Fear and Greed, daily 2 00:00:08,760 --> 00:00:11,239 Speaker 1: business news for people who make their own decisions. I'm 3 00:00:11,240 --> 00:00:15,200 Speaker 1: Michael Thompson and good morning Sean Aylmer. Good morning, Michael, Sean. 4 00:00:15,200 --> 00:00:19,560 Speaker 1: Our weekend show is very, very different to the weekday show. 5 00:00:19,720 --> 00:00:22,040 Speaker 1: It is all about the two of us each nominating 6 00:00:22,079 --> 00:00:24,799 Speaker 1: what we think is the biggest business news story of 7 00:00:24,800 --> 00:00:27,760 Speaker 1: the week, the most remarkable business story, a sleeper story, 8 00:00:28,040 --> 00:00:30,479 Speaker 1: one that's not getting the attention that we feel that 9 00:00:30,520 --> 00:00:34,440 Speaker 1: it deserves, and then our favorite story that can be 10 00:00:34,680 --> 00:00:37,360 Speaker 1: like business adjacent. It doesn't have to be hardcore business. 11 00:00:37,960 --> 00:00:41,000 Speaker 1: It is a competition, of course, and so we are 12 00:00:41,080 --> 00:00:44,040 Speaker 1: joined every week by a judge to pick a winner, 13 00:00:44,560 --> 00:00:46,440 Speaker 1: and that judge it pretty much just draws it out 14 00:00:46,440 --> 00:00:48,159 Speaker 1: of the hat, doesn't he that judges our Fear and 15 00:00:48,200 --> 00:00:50,879 Speaker 1: Greed colleague Adam Lang Adam, good morning. 16 00:00:50,680 --> 00:00:52,320 Speaker 2: Good morning Michael, and good morning Sean. 17 00:00:53,280 --> 00:00:55,520 Speaker 3: Good morning, Adam, Good morning today. 18 00:00:55,560 --> 00:00:59,120 Speaker 1: My focus is from this point on is on brevity, 19 00:00:59,280 --> 00:01:01,240 Speaker 1: clarity and being concise. 20 00:01:02,160 --> 00:01:03,920 Speaker 3: How many times do you reckon? You'll tell us that 21 00:01:04,080 --> 00:01:05,880 Speaker 3: in the next thirty minutes. 22 00:01:05,800 --> 00:01:11,040 Speaker 1: Probably four, maybe five. Can I give you a challenge, Adam, 23 00:01:11,400 --> 00:01:15,360 Speaker 1: to go through your criteria in eighteen seconds or less. 24 00:01:15,440 --> 00:01:18,959 Speaker 2: All right, number one, topicality. That's what we had for list. 25 00:01:19,000 --> 00:01:22,679 Speaker 3: Do you reckon? Did you reckon that brevity isn't an 26 00:01:22,720 --> 00:01:25,640 Speaker 3: issue for you or me? Like two of the three 27 00:01:25,680 --> 00:01:27,040 Speaker 3: of us, very kon Bridges. 28 00:01:27,040 --> 00:01:30,280 Speaker 4: Say, like the Goldilocks there he sewan definitely not for you, 29 00:01:30,480 --> 00:01:31,160 Speaker 4: a little. 30 00:01:30,920 --> 00:01:33,679 Speaker 2: Bit for me, but mostly for Michael. 31 00:01:34,160 --> 00:01:36,040 Speaker 1: You know what I'm going to start very early today 32 00:01:36,080 --> 00:01:37,640 Speaker 1: calling out the BS when I see it. 33 00:01:37,800 --> 00:01:39,240 Speaker 3: Eighteen seconds is up, Adham. 34 00:01:39,959 --> 00:01:42,120 Speaker 2: It's just topicality. That's all we're going for today. 35 00:01:42,480 --> 00:01:45,679 Speaker 1: Sure is the reason why this show blows out, because 36 00:01:45,760 --> 00:01:47,800 Speaker 1: if I was just left to talk, I was just 37 00:01:48,040 --> 00:01:51,560 Speaker 1: talking a contained kind of you. It's your interjection. 38 00:01:51,680 --> 00:01:54,720 Speaker 3: Did you so last week's show was particularly long? Did 39 00:01:54,800 --> 00:01:57,400 Speaker 3: you know I was timing it? Michael finished, he had 40 00:01:57,760 --> 00:02:00,840 Speaker 3: the biggest story of the week he started. It was 41 00:02:00,960 --> 00:02:03,800 Speaker 3: nine minutes fifty three by the time Michael had finished 42 00:02:03,800 --> 00:02:07,360 Speaker 3: the biggest threat. And I'm serious, like basically a third 43 00:02:07,360 --> 00:02:08,239 Speaker 3: of the time. 44 00:02:08,160 --> 00:02:11,280 Speaker 4: Fifty three seconds of substance and nine minutes of dramatic flair. 45 00:02:11,639 --> 00:02:16,760 Speaker 1: Yeah, the melodrama. So just so quickly, you did say topicality, timeliness. 46 00:02:16,280 --> 00:02:21,240 Speaker 4: Yes, economic impact, very important, pure subjective bias, that's mine. 47 00:02:21,320 --> 00:02:23,679 Speaker 2: And lastly, of course melodrama. 48 00:02:24,320 --> 00:02:26,720 Speaker 1: Which actually leads me into and this is not going 49 00:02:26,760 --> 00:02:30,520 Speaker 1: off topic at all. No, no, no, a message that 50 00:02:30,560 --> 00:02:32,880 Speaker 1: we received from a listener during the week. 51 00:02:33,000 --> 00:02:34,160 Speaker 2: Is it an early protest? 52 00:02:34,280 --> 00:02:36,840 Speaker 1: No no, no, no, no protest at all. I want to 53 00:02:36,880 --> 00:02:39,400 Speaker 1: start on a really on a good note, because this 54 00:02:39,440 --> 00:02:41,600 Speaker 1: show can get quite nasty, it can get quite personal, 55 00:02:41,639 --> 00:02:45,840 Speaker 1: and we've got to remember who it's for. This is 56 00:02:45,880 --> 00:02:49,720 Speaker 1: a family show, after all, And this message came from 57 00:02:49,800 --> 00:02:54,880 Speaker 1: Liam and it's a nomination for the most Enthusiastic Advocate. Okay, 58 00:02:54,919 --> 00:02:57,880 Speaker 1: the Maya Award. Remember how we give out mugs for 59 00:02:57,919 --> 00:03:03,520 Speaker 1: our Maya? Certainly do, says my seven almost eight year 60 00:03:03,560 --> 00:03:07,440 Speaker 1: old son. Finn insists on listening to the podcast every 61 00:03:07,520 --> 00:03:10,480 Speaker 1: time we get in the car. He argues the point 62 00:03:10,520 --> 00:03:14,480 Speaker 1: with his older siblings that quote it's very important for 63 00:03:14,560 --> 00:03:20,120 Speaker 1: Dad's business, and another quote, sometimes it's really funny. 64 00:03:22,200 --> 00:03:23,440 Speaker 2: Finn, I love that. 65 00:03:24,160 --> 00:03:27,200 Speaker 1: And Liam goes on to say he's been listening every 66 00:03:27,280 --> 00:03:30,240 Speaker 1: weekend and most mornings for about a year now, and 67 00:03:30,280 --> 00:03:33,280 Speaker 1: while I'm sure most of it is probably kind of 68 00:03:33,360 --> 00:03:36,840 Speaker 1: not really relevant to him, he loves the weekend edition 69 00:03:37,080 --> 00:03:40,040 Speaker 1: and cheers whenever I put it on. And the reason 70 00:03:40,080 --> 00:03:42,760 Speaker 1: why I am reading this and the reason why I 71 00:03:42,800 --> 00:03:46,680 Speaker 1: am dedicating today's show bring it home to Finn is 72 00:03:46,720 --> 00:03:51,360 Speaker 1: because Liam says that Finn is a big fan of 73 00:03:51,400 --> 00:03:58,080 Speaker 1: the melodrama, So Finn is one of my people. So Finn, 74 00:03:58,200 --> 00:04:00,560 Speaker 1: this is for you, and Liam then finished, thanks for 75 00:04:00,600 --> 00:04:04,080 Speaker 1: the pod. Regular listener, myself and I forced coworkers to 76 00:04:04,120 --> 00:04:06,720 Speaker 1: listen whenever I'm on a work trip. What do you reckon? 77 00:04:06,880 --> 00:04:09,440 Speaker 2: Adam directing me mea mugs on the way. 78 00:04:09,360 --> 00:04:12,080 Speaker 1: Mugs on the way. Thank you Liam, and thank you 79 00:04:12,160 --> 00:04:14,960 Speaker 1: Finn for listening. I will do my best to inject 80 00:04:15,000 --> 00:04:18,479 Speaker 1: a suitable amount of melodrama into today's show. Shall we 81 00:04:18,560 --> 00:04:20,880 Speaker 1: just jump straight into the biggest Let's jump straight in? 82 00:04:21,320 --> 00:04:22,120 Speaker 2: Yeah, straight in. 83 00:04:22,400 --> 00:04:24,600 Speaker 1: Enough of this jibber jabber from the two of you. 84 00:04:24,760 --> 00:04:26,320 Speaker 3: Go for it, Michael, you start? 85 00:04:26,839 --> 00:04:27,839 Speaker 1: Oh shall I go first? 86 00:04:27,880 --> 00:04:29,000 Speaker 3: Oh? Which like med to go first? 87 00:04:29,040 --> 00:04:31,600 Speaker 1: Okay, you go first? 88 00:04:32,160 --> 00:04:35,520 Speaker 3: Easily the biggest story of the week, based on Adam's criteria, 89 00:04:35,880 --> 00:04:39,240 Speaker 3: easily is what's going on in the Middle East. The 90 00:04:39,320 --> 00:04:42,440 Speaker 3: region is close to all out war, with israel ground 91 00:04:42,480 --> 00:04:46,279 Speaker 3: troops pushing into Lebanon more than two hundred Iranian ballistic 92 00:04:46,320 --> 00:04:50,120 Speaker 3: missiles were then launched against Israel, followed by the Israeli 93 00:04:50,160 --> 00:04:54,000 Speaker 3: Defense forces striking Beirute. It's a humanitarian crisis. The other 94 00:04:53,960 --> 00:04:56,560 Speaker 3: an easy government is working to get seventeen hundred Australian 95 00:04:56,560 --> 00:04:59,880 Speaker 3: citizens and residents and their families out of Lebanon. But 96 00:05:00,000 --> 00:05:04,960 Speaker 3: bringing it back to what Fearing Greed talks about business, 97 00:05:05,600 --> 00:05:10,160 Speaker 3: the crisis is having a major impact on financial markets. 98 00:05:10,400 --> 00:05:13,360 Speaker 3: Oil prices have been reasonably low in recent months. We've 99 00:05:13,400 --> 00:05:18,839 Speaker 3: all appreciated that at the petrol bowser. Guess what prices 100 00:05:18,880 --> 00:05:21,560 Speaker 3: are going to rise? The region provides about one third 101 00:05:21,600 --> 00:05:25,200 Speaker 3: of the world's oil. Prices spiked yesterday after the US 102 00:05:25,240 --> 00:05:28,680 Speaker 3: President Joe Biden kind of commented casually that the US 103 00:05:28,720 --> 00:05:33,400 Speaker 3: and Israel had discussed striking Iranian oil fields. We again 104 00:05:33,440 --> 00:05:35,919 Speaker 3: to have to pay a lot more for petrol. The 105 00:05:36,000 --> 00:05:38,919 Speaker 3: crisis has kept a bit of a lid on equity markets. 106 00:05:38,960 --> 00:05:41,960 Speaker 3: Plenty of optimism about equities, but the Middle East tensions 107 00:05:42,000 --> 00:05:45,080 Speaker 3: are just putting downward pressure on stocks. Are the risk assets. 108 00:05:45,080 --> 00:05:47,760 Speaker 3: One of those is the Aussie dollar that hit almost 109 00:05:47,800 --> 00:05:49,920 Speaker 3: sixty nine and a half US cents. It's come off 110 00:05:50,080 --> 00:05:53,599 Speaker 3: now it's back below that sixty nine cent level. Bitcoins 111 00:05:53,640 --> 00:05:56,320 Speaker 3: fallen gold, however, remains high a good place to be 112 00:05:56,760 --> 00:06:01,560 Speaker 3: for investors at a time of crisis. By far, the 113 00:06:01,600 --> 00:06:03,440 Speaker 3: biggest story of the week is what's happening in the 114 00:06:03,440 --> 00:06:05,320 Speaker 3: Middle East, and it means kind of not our cup 115 00:06:05,360 --> 00:06:08,640 Speaker 3: of tea to go into that necessarily, but it's what 116 00:06:09,040 --> 00:06:13,080 Speaker 3: that means for financial markets. That's the only story of 117 00:06:13,080 --> 00:06:16,880 Speaker 3: the week. And I did it briefly, Michael. 118 00:06:17,120 --> 00:06:20,800 Speaker 1: You know why I was so brief because I didn't interrupt. See, 119 00:06:20,800 --> 00:06:23,920 Speaker 1: that's the key to this is that you started a timer. 120 00:06:24,520 --> 00:06:27,160 Speaker 1: Put your phone down. I don't want to see it. 121 00:06:28,200 --> 00:06:30,680 Speaker 1: I don't you know what. I just ignore you. Now 122 00:06:30,680 --> 00:06:32,560 Speaker 1: I'm going to close my eyes and not even look 123 00:06:32,600 --> 00:06:35,640 Speaker 1: in your direction because I have a big story, and 124 00:06:35,680 --> 00:06:38,039 Speaker 1: it's a story that's here at home. It is a 125 00:06:38,080 --> 00:06:42,400 Speaker 1: story that is here at home because this week wasn't 126 00:06:42,440 --> 00:06:45,760 Speaker 1: just any old week. This week was It was a 127 00:06:45,800 --> 00:06:48,560 Speaker 1: turning point and it was an inflection point. Inflection points 128 00:06:48,600 --> 00:06:50,880 Speaker 1: always sound so much more impressive, don't they. For the 129 00:06:50,880 --> 00:06:58,200 Speaker 1: Australian property market. For two reasons, two reasons, two key reasons. 130 00:06:58,200 --> 00:07:00,839 Speaker 1: I'm at forty one seconds, Sean, please put it down. 131 00:07:01,120 --> 00:07:03,839 Speaker 2: Stay stoic, Michael be Stong keep going. 132 00:07:04,040 --> 00:07:07,599 Speaker 1: House price growth in several major cities, including Melbourne, as 133 00:07:07,600 --> 00:07:12,880 Speaker 1: I mentioned, has stalled, stalled. The property market is cooling 134 00:07:12,920 --> 00:07:15,000 Speaker 1: on the back of ongoing high interest rates. In the 135 00:07:15,000 --> 00:07:19,160 Speaker 1: first month of spring, right dwelling values just zero point 136 00:07:19,240 --> 00:07:23,080 Speaker 1: four percent up across the nation, taking this September quarter 137 00:07:23,200 --> 00:07:26,120 Speaker 1: rise to one percent. According to core Logic, four capital 138 00:07:26,120 --> 00:07:28,920 Speaker 1: cities now listen to this. Four capital cities, led by Melbourne, 139 00:07:29,200 --> 00:07:35,000 Speaker 1: recorded a fall through the quarter. Sydney home prices grew 140 00:07:35,120 --> 00:07:37,880 Speaker 1: at their slowest pace since the beginning of last year. 141 00:07:37,920 --> 00:07:40,320 Speaker 1: Even the mid size capitals, the mid size capitals that 142 00:07:40,400 --> 00:07:44,000 Speaker 1: we have talked about so many times, which have been charging, 143 00:07:44,480 --> 00:07:48,360 Speaker 1: charging upwards while they're now losing momentum. If that is 144 00:07:48,440 --> 00:07:52,040 Speaker 1: not a turning point, if that is not an inflection 145 00:07:52,200 --> 00:07:54,720 Speaker 1: point for the Australian property market, then I don't know 146 00:07:54,720 --> 00:07:59,280 Speaker 1: what is. But wait, because this story actually gets even 147 00:07:59,360 --> 00:08:06,200 Speaker 1: bigger because this week we saw the first clear in 148 00:08:06,280 --> 00:08:09,480 Speaker 1: the hopeless. 149 00:08:09,800 --> 00:08:12,240 Speaker 3: You are hopeless. You are two and a half minutes 150 00:08:12,280 --> 00:08:14,400 Speaker 3: in Adam and I have said nothing. 151 00:08:15,600 --> 00:08:16,800 Speaker 1: You're building yourself up. 152 00:08:17,200 --> 00:08:19,760 Speaker 3: It's really hard for you to work without interruptions. That's 153 00:08:19,800 --> 00:08:22,600 Speaker 3: the point like you need to work off us. 154 00:08:22,800 --> 00:08:25,000 Speaker 1: Nope, no, I've got this. 155 00:08:25,000 --> 00:08:28,160 Speaker 3: This week we then saw I have no idea what 156 00:08:28,200 --> 00:08:29,920 Speaker 3: you've said so far, To be honest. 157 00:08:30,080 --> 00:08:32,400 Speaker 1: It's because you've been fiddling with your phone the whole time, 158 00:08:32,440 --> 00:08:35,120 Speaker 1: you've been trying to get your little timer going, and 159 00:08:35,160 --> 00:08:38,840 Speaker 1: because you've got these kind of arthritic, jagged old claw hands. 160 00:08:39,559 --> 00:08:44,920 Speaker 1: Two minutes fifty three we saw the first clear indication 161 00:08:45,160 --> 00:09:00,440 Speaker 1: this week, brace yourselves that the rental boom is over, yes, over. Perhaps. 162 00:09:01,559 --> 00:09:06,559 Speaker 1: Annual rent increases for houses have hit multi year lows 163 00:09:06,600 --> 00:09:10,920 Speaker 1: in Sydney, Melbourne, Brisbane, Perth, Adelaide. In fact, in Melbourne 164 00:09:10,920 --> 00:09:16,000 Speaker 1: and Canberra rents have actually gone backwards. This is huge. Obviously, 165 00:09:16,040 --> 00:09:19,160 Speaker 1: rents are still extremely high, but this is the first time, 166 00:09:19,440 --> 00:09:22,080 Speaker 1: I reckon, the first time in a very very long time, 167 00:09:22,120 --> 00:09:25,080 Speaker 1: that there's actually been some real hope for renters. And 168 00:09:25,120 --> 00:09:27,800 Speaker 1: consider this as well. We have known for a long 169 00:09:27,840 --> 00:09:30,760 Speaker 1: time that there is obviously a rental crisis, but nothing 170 00:09:30,800 --> 00:09:34,320 Speaker 1: illustrates just how severe it is and how much of 171 00:09:34,320 --> 00:09:39,120 Speaker 1: a strain it has been putting on household budgets. Like 172 00:09:39,240 --> 00:09:42,840 Speaker 1: these statistics now adam right these days, what was the 173 00:09:42,840 --> 00:09:47,800 Speaker 1: word statistics yeah, good, you heard me have to pause 174 00:09:47,840 --> 00:09:52,360 Speaker 1: before I started it. Consider, Consider, Adam, write this down 175 00:09:52,640 --> 00:09:56,480 Speaker 1: that since March of twenty twenty, house rents have risen 176 00:09:56,880 --> 00:10:02,920 Speaker 1: forty eight percent. Unit rents have risen forty percent. Wages, 177 00:10:03,760 --> 00:10:08,319 Speaker 1: on the other hand, have gone up just thirteen percent. 178 00:10:09,720 --> 00:10:14,960 Speaker 1: That to me, in just those three numbers demonstrates just 179 00:10:15,080 --> 00:10:19,200 Speaker 1: how severe the rental crisis is and how much of 180 00:10:19,240 --> 00:10:21,320 Speaker 1: a strain it is putting on household budgets. Of course, 181 00:10:21,320 --> 00:10:23,720 Speaker 1: this dynamite data, or what I would describe as a 182 00:10:23,760 --> 00:10:29,000 Speaker 1: category winning piece of information, didn't come directly from me. 183 00:10:29,520 --> 00:10:32,480 Speaker 1: I might have had just a little bit of help, 184 00:10:32,600 --> 00:10:35,520 Speaker 1: a little bit of help from Domain's head of Research 185 00:10:35,720 --> 00:10:38,680 Speaker 1: and economics, doctor Nicola Powell, who I had a little 186 00:10:38,720 --> 00:10:40,360 Speaker 1: chat too during the week. 187 00:10:41,679 --> 00:10:43,960 Speaker 2: Impressive doing some homework. 188 00:10:43,600 --> 00:10:48,240 Speaker 1: That's right, And she happily fed me this data when 189 00:10:48,280 --> 00:10:50,320 Speaker 1: I told her how much I wanted to beat Sean, 190 00:10:50,640 --> 00:10:53,800 Speaker 1: and she goes, all right, here's some write these down, 191 00:10:54,040 --> 00:10:56,400 Speaker 1: and so I did, and I've incorporated them. Now this 192 00:10:56,520 --> 00:10:59,000 Speaker 1: is rare when you consider this, This is actually quite 193 00:10:59,000 --> 00:11:01,560 Speaker 1: not the fact that I actually have data that is 194 00:11:01,600 --> 00:11:05,520 Speaker 1: I suppose rare as well. But what is particularly rare, 195 00:11:05,640 --> 00:11:08,600 Speaker 1: particularly uncommon. I'm finishing up here, I'm finishing up, I'm 196 00:11:08,600 --> 00:11:12,880 Speaker 1: building to something. What is particularly unusual is that there 197 00:11:12,920 --> 00:11:16,680 Speaker 1: are such major developments on both the house price side, 198 00:11:16,720 --> 00:11:21,520 Speaker 1: that the actual housing value side and the rental side 199 00:11:21,640 --> 00:11:25,520 Speaker 1: of the market in the same week. Right, It's like 200 00:11:25,600 --> 00:11:30,280 Speaker 1: a comet and an eclipse being in the sky at 201 00:11:30,280 --> 00:11:34,160 Speaker 1: the same time. And all we can do, right is 202 00:11:34,280 --> 00:11:37,800 Speaker 1: sit back and marvel at the wonder of it all. 203 00:11:38,080 --> 00:11:41,040 Speaker 1: And really, I suppose marvel at the wonder of the 204 00:11:41,080 --> 00:11:43,800 Speaker 1: person who brought it to everybody's attention. 205 00:11:44,200 --> 00:11:50,520 Speaker 3: Me so officially, Michael went four times as long as 206 00:11:50,559 --> 00:12:01,600 Speaker 3: I did, and he lost. It is much more fun 207 00:12:01,600 --> 00:12:04,240 Speaker 3: interrupting Michael than actually letting him go and listening to him. 208 00:12:06,800 --> 00:12:08,880 Speaker 1: When you say you lost, you were talking to me, right, 209 00:12:10,880 --> 00:12:12,400 Speaker 1: That's that's cool. 210 00:12:12,960 --> 00:12:17,240 Speaker 4: All those stats are brilliant and really do hit people everywhere, 211 00:12:17,600 --> 00:12:22,240 Speaker 4: whether it's rent or ownership. But it hasn't had the 212 00:12:22,320 --> 00:12:26,959 Speaker 4: impact that the Middle East has this week, and you know, 213 00:12:27,040 --> 00:12:29,200 Speaker 4: it's more of an unfolding story than a brand new 214 00:12:29,240 --> 00:12:30,040 Speaker 4: piece of information. 215 00:12:30,480 --> 00:12:33,360 Speaker 1: Well, I would like to apologize to two people. Finn 216 00:12:34,480 --> 00:12:36,280 Speaker 1: do I feel I have let down No, No, you. 217 00:12:36,280 --> 00:12:39,160 Speaker 2: Delivered on the melodrama be folded there. 218 00:12:39,320 --> 00:12:40,760 Speaker 3: This is where I think, This is where I think 219 00:12:41,520 --> 00:12:44,600 Speaker 3: Michael takes himself a little too seriously. See, the melodrama 220 00:12:44,800 --> 00:12:47,360 Speaker 3: is helped by the interruptions from you and I when 221 00:12:47,360 --> 00:12:49,439 Speaker 3: it was just you and I for six minutes, been 222 00:12:49,679 --> 00:12:52,480 Speaker 3: quiet saying nothing. You got a bit dull. 223 00:12:53,320 --> 00:12:55,520 Speaker 1: Well that's because I had a crowd. Maybe that's because 224 00:12:55,520 --> 00:12:58,400 Speaker 1: I had too many stats in there. Maybe maybe I need. 225 00:12:58,280 --> 00:13:00,920 Speaker 3: They are going to blame Nikola, are you? 226 00:13:01,000 --> 00:13:04,680 Speaker 1: Yes? Actually I'm sorry, Nicola Powell. I appreciate your efforts 227 00:13:04,679 --> 00:13:07,480 Speaker 1: to help me, but oh you lost it for me. 228 00:13:07,840 --> 00:13:13,440 Speaker 3: Oh tough, very tough, Nikola. I apologize on behalf of 229 00:13:13,440 --> 00:13:16,960 Speaker 3: fear and greed for that childish behavior from Michael. 230 00:13:17,400 --> 00:13:20,160 Speaker 4: Yeah, and on my behalf, Nicola. You know, it was 231 00:13:20,240 --> 00:13:22,320 Speaker 4: really only the stats that've got the story. 232 00:13:22,440 --> 00:13:22,880 Speaker 2: Somewhere. 233 00:13:24,240 --> 00:13:26,480 Speaker 1: I feel like I might be teaching Finn some bad 234 00:13:26,559 --> 00:13:29,839 Speaker 1: lessons here on sportsmanship. Yeah, but you know what the 235 00:13:30,120 --> 00:13:33,360 Speaker 1: real lesson here is just just pick yourself up and 236 00:13:33,400 --> 00:13:34,400 Speaker 1: win the next category. 237 00:13:34,440 --> 00:13:35,240 Speaker 3: That's right, get. 238 00:13:35,120 --> 00:13:37,520 Speaker 2: Back on stage. The show must go on, Michael. 239 00:13:37,640 --> 00:13:40,520 Speaker 1: Indeed, and then you and you crush your opponents and 240 00:13:40,559 --> 00:13:41,719 Speaker 1: you take revenge on them. 241 00:13:41,880 --> 00:13:43,640 Speaker 3: Finn remarkable story. 242 00:13:44,040 --> 00:13:48,240 Speaker 1: Go. What's remarkable is that Virgin Australia finished this week 243 00:13:48,559 --> 00:13:53,679 Speaker 1: in a much much, much much stronger position than it started. 244 00:13:53,920 --> 00:13:57,800 Speaker 1: And in a way, Quantus only has itself to blame 245 00:13:57,880 --> 00:14:00,720 Speaker 1: for this, and I find that part of this story remarkable. 246 00:14:00,760 --> 00:14:04,320 Speaker 1: The details of the story are actually very simple. So 247 00:14:04,400 --> 00:14:07,760 Speaker 1: in a nutshell, in a nutshell, this story, and I'll 248 00:14:07,840 --> 00:14:15,560 Speaker 1: keep this short. Qatar Airways. Qatar Airways could I absolutely couldn't. 249 00:14:15,600 --> 00:14:18,720 Speaker 1: It had to be said. Qatar has agreed to buy 250 00:14:18,840 --> 00:14:26,320 Speaker 1: twenty five percent. That is a quarter, twenty five percent Finn. 251 00:14:26,840 --> 00:14:29,040 Speaker 1: That was for Finn. I'm helping with seven, a. 252 00:14:29,120 --> 00:14:31,320 Speaker 3: Seven year old coming on to eight, who's listing to 253 00:14:31,400 --> 00:14:34,080 Speaker 3: fear and greed. Finn. I guarantee you know that twenty 254 00:14:34,120 --> 00:14:35,120 Speaker 3: five percent is a quarter. 255 00:14:35,680 --> 00:14:41,480 Speaker 1: Well it does now twenty five percent of Virgin from 256 00:14:41,560 --> 00:14:45,400 Speaker 1: its private equity owner, Baying Capital. It means Virgin Virgin 257 00:14:45,440 --> 00:14:49,640 Speaker 1: will resume long haul international routes using Qatar's planes. Virgin 258 00:14:49,680 --> 00:14:56,200 Speaker 1: will once again, once again officially be a truly international airline. 259 00:14:56,200 --> 00:14:58,120 Speaker 1: I mean it still has to be a reviewed by 260 00:14:58,160 --> 00:15:01,000 Speaker 1: the Foreign Investment Review Board and the ariable C, but 261 00:15:01,440 --> 00:15:03,800 Speaker 1: this is I mean, all the signs are good, right, 262 00:15:03,880 --> 00:15:06,440 Speaker 1: I mean it had support on both sides of politics 263 00:15:06,440 --> 00:15:10,440 Speaker 1: this week. It is good no great news for passengers. 264 00:15:10,720 --> 00:15:13,560 Speaker 1: More competition in the long haul market, so cheaper flights, 265 00:15:13,800 --> 00:15:17,920 Speaker 1: and it strengthens Virgin immensely. After all, Katar Airways is 266 00:15:17,960 --> 00:15:23,040 Speaker 1: the number one airline in the world. It has got 267 00:15:23,200 --> 00:15:26,720 Speaker 1: some serious weight which could flow through to Virgin in 268 00:15:26,760 --> 00:15:28,520 Speaker 1: the form of, as Sean pointed out to us through 269 00:15:28,520 --> 00:15:32,960 Speaker 1: the week, lower fuel and aircraft maintenance costs, and Katar's 270 00:15:32,960 --> 00:15:36,600 Speaker 1: involvement should also attract the interest of other investors importantly. 271 00:15:36,960 --> 00:15:39,960 Speaker 1: But as I mentioned earlier, a lot earlier, because I 272 00:15:39,960 --> 00:15:42,760 Speaker 1: realized I've been going on for at least thirty seconds now, 273 00:15:43,080 --> 00:15:47,520 Speaker 1: the most remarkable part of all of this is the 274 00:15:47,560 --> 00:15:52,480 Speaker 1: way that Quantis is to blame for strengthening its biggest 275 00:15:53,120 --> 00:15:56,600 Speaker 1: local rival. Because Qatar was, of course pushing to get 276 00:15:56,640 --> 00:16:00,880 Speaker 1: more flights into Australia last year, Quantus lobbied hard, hard 277 00:16:00,920 --> 00:16:03,920 Speaker 1: against it, and it created quite a political storm, and 278 00:16:03,960 --> 00:16:07,360 Speaker 1: the government sided with the national carrier and blocked Katar. 279 00:16:07,760 --> 00:16:07,920 Speaker 2: Well. 280 00:16:07,920 --> 00:16:10,640 Speaker 1: Now Qatar has got plenty of extra flights essentially through 281 00:16:10,680 --> 00:16:14,040 Speaker 1: its Virgin purchase, which don't need to be approved separately, 282 00:16:14,120 --> 00:16:18,680 Speaker 1: so Qatar wins, Virgin winds, the passengers win, and Quantus losers. 283 00:16:19,400 --> 00:16:24,800 Speaker 1: It is all remarkable and that's it done. Brevity, clarity, concision. 284 00:16:24,840 --> 00:16:27,960 Speaker 3: Concision is that a word? No, it doesn't matter. Just 285 00:16:28,000 --> 00:16:28,760 Speaker 3: let them keep going. 286 00:16:29,680 --> 00:16:32,480 Speaker 1: I was like, I thought, Brevity is fine, Clarity is fine. 287 00:16:32,680 --> 00:16:41,240 Speaker 1: What conciseness? You know what, Finn, I've done my best. 288 00:16:42,320 --> 00:16:44,240 Speaker 3: I do think that is a very good story. I do, 289 00:16:44,560 --> 00:16:50,000 Speaker 3: but nothing on my story. My story actually matters not 290 00:16:50,120 --> 00:16:55,360 Speaker 3: just to people flying planes, but to people with share portfolios. Michael, 291 00:16:55,480 --> 00:16:57,240 Speaker 3: I want you to not smile when I say this. 292 00:16:57,400 --> 00:17:04,400 Speaker 3: My most remarkable story is the Great Rotation. It's truly 293 00:17:04,600 --> 00:17:08,040 Speaker 3: remarkable in how in a matter of two weeks, less 294 00:17:08,040 --> 00:17:10,919 Speaker 3: than two weeks, resource stocks have surged and bank stocks 295 00:17:10,920 --> 00:17:14,560 Speaker 3: have dropped, such that bhps once again the big Australian, 296 00:17:14,680 --> 00:17:17,040 Speaker 3: taking the top spot on the ASEX two hundred from 297 00:17:17,080 --> 00:17:20,240 Speaker 3: the Commonwealth Bank. Started last week when Beijing promised lower 298 00:17:20,280 --> 00:17:22,760 Speaker 3: interest rates in other stimuli to help the world's second 299 00:17:22,800 --> 00:17:25,479 Speaker 3: largest economy. That triggered surge and commodity prices on all 300 00:17:25,520 --> 00:17:28,159 Speaker 3: prices top to one hundred US dollars a ton. That 301 00:17:28,280 --> 00:17:30,880 Speaker 3: sent the share price of the big miners high. All 302 00:17:30,920 --> 00:17:33,399 Speaker 3: three are up around twelve to fifteen percent since the 303 00:17:33,440 --> 00:17:36,080 Speaker 3: middle of last week, quite phenomenal. The banks, on the 304 00:17:36,119 --> 00:17:38,960 Speaker 3: other hand, have gone the other way. BHP now has 305 00:17:38,960 --> 00:17:41,600 Speaker 3: a market cap of two hundred and thirty billion dollars. 306 00:17:41,840 --> 00:17:45,320 Speaker 3: Commonwealth Bank is worth two hundred and twenty five billion dollars, 307 00:17:45,320 --> 00:17:47,960 Speaker 3: streets ahead of number three CSL at about one hundred 308 00:17:48,000 --> 00:17:52,760 Speaker 3: and forty billion dollars. Size doesn't really matter when it 309 00:17:52,800 --> 00:17:58,000 Speaker 3: comes to investing its more future earnings. But it is interesting, Michael, 310 00:17:59,240 --> 00:18:03,760 Speaker 3: But it is. It is interesting. The question is Michael 311 00:18:04,280 --> 00:18:07,399 Speaker 3: now decided size doesn't matter. Is it the beginning of 312 00:18:07,440 --> 00:18:11,240 Speaker 3: a great rotation from bank stocks to resources on the 313 00:18:11,400 --> 00:18:16,040 Speaker 3: x AX? Maybe, though plenty including Matthew Kidman, who we 314 00:18:16,040 --> 00:18:19,000 Speaker 3: spoke to during the week, don't think that's the case 315 00:18:19,040 --> 00:18:21,960 Speaker 3: because Beijing still has to turn around the Chinese economy. 316 00:18:22,720 --> 00:18:25,680 Speaker 3: Given the consensus view on National Australian Bank, Westpac and 317 00:18:25,720 --> 00:18:29,120 Speaker 3: A and Z is sell. These are the experts. Their 318 00:18:29,160 --> 00:18:32,360 Speaker 3: consensus view is sell those stocks. On Commonwealth Bank, it's 319 00:18:32,600 --> 00:18:36,080 Speaker 3: strong sell, that's according to market Index. Is it fund 320 00:18:36,119 --> 00:18:41,919 Speaker 3: managers finally deciding to stop buying banks again? The answer 321 00:18:41,920 --> 00:18:44,760 Speaker 3: is maybe. Given investors been wrong about this for about 322 00:18:44,760 --> 00:18:48,160 Speaker 3: eighteen months view are ready to totally subscribe to that view. 323 00:18:48,680 --> 00:18:50,520 Speaker 3: So is the bank sell down because interest rates in 324 00:18:50,520 --> 00:18:53,320 Speaker 3: Australia will eventually fall. Banks is faced to suffer in 325 00:18:53,359 --> 00:18:56,480 Speaker 3: a falling interest rate environment. Basically their cost of funding 326 00:18:57,280 --> 00:18:59,720 Speaker 3: doesn't fall by as much as what they're paying out 327 00:18:59,800 --> 00:19:04,200 Speaker 3: on loans. They get squeezed. Maybe maybe it depends on marketing, 328 00:19:04,280 --> 00:19:08,440 Speaker 3: the competition, whatever the reason, it is just quite remarkable 329 00:19:08,520 --> 00:19:13,159 Speaker 3: the turnaround in bank stocks and resource stocks over the 330 00:19:13,240 --> 00:19:14,440 Speaker 3: last eight days or so. 331 00:19:15,600 --> 00:19:19,200 Speaker 2: Adam, what a riper challenge this is. 332 00:19:21,280 --> 00:19:25,560 Speaker 1: And concision is a word. Just for the record, I 333 00:19:25,680 --> 00:19:27,560 Speaker 1: looked it up while while Shaw was talking. 334 00:19:27,760 --> 00:19:33,680 Speaker 3: You are so petty, Michael question, then don't take lessons 335 00:19:33,720 --> 00:19:34,240 Speaker 3: from Michael. 336 00:19:35,160 --> 00:19:40,200 Speaker 1: Be like me, pick up on other people's mistakes and criticize, criticize, criticize, 337 00:19:40,240 --> 00:19:42,720 Speaker 1: and go hard on them. That's right, that's right. Don't 338 00:19:42,800 --> 00:19:44,959 Speaker 1: let people get away with things, all right? 339 00:19:45,359 --> 00:19:52,000 Speaker 2: Okay? Really interesting battle and both brilliant stories. Really both remarkable. 340 00:19:52,160 --> 00:19:56,879 Speaker 2: I have given this one to Michael. Now I know 341 00:19:57,040 --> 00:19:58,480 Speaker 2: this is an unorthodox choice. 342 00:19:58,520 --> 00:20:01,240 Speaker 3: The reason is this no more or unorthodox than normal. 343 00:20:04,600 --> 00:20:06,399 Speaker 1: So the reason is this. 344 00:20:07,800 --> 00:20:12,719 Speaker 4: Basically, Qatar was knocked back by the government, but private 345 00:20:12,840 --> 00:20:15,720 Speaker 4: enterprise found a way around what the government wouldn't do. 346 00:20:16,160 --> 00:20:20,960 Speaker 4: It's like life in Jurassic Park funds away anyway, So 347 00:20:21,359 --> 00:20:25,119 Speaker 4: that Virgin and Katar got together and navigated this solution 348 00:20:25,880 --> 00:20:28,879 Speaker 4: I think is really good and remarkable. 349 00:20:29,040 --> 00:20:31,000 Speaker 3: Do you know what I like about your judging sometimes 350 00:20:31,240 --> 00:20:34,840 Speaker 3: is it has absolutely nothing to do with what Michael 351 00:20:34,920 --> 00:20:37,440 Speaker 3: or I have said. It's kind of about what you 352 00:20:37,560 --> 00:20:38,359 Speaker 3: know about the story. 353 00:20:39,359 --> 00:20:43,920 Speaker 1: Well, it's fueled by you both. I made like, not 354 00:20:44,000 --> 00:20:46,720 Speaker 1: in those exact words, or in those themes or anything. 355 00:20:46,760 --> 00:20:49,040 Speaker 3: Nor did I use the idea of private enterprise working 356 00:20:49,040 --> 00:20:52,159 Speaker 3: away right now, but deep down Michael I. 357 00:20:52,320 --> 00:20:54,359 Speaker 1: Said they found a way. Oh no, I didn't. Actually 358 00:20:54,400 --> 00:20:56,920 Speaker 1: that was that. But you know what, you know what 359 00:20:57,040 --> 00:20:58,760 Speaker 1: the vibe, the vibe was there. 360 00:20:59,320 --> 00:21:00,560 Speaker 2: It's one or it's one. 361 00:21:00,680 --> 00:21:03,520 Speaker 1: All okay, all right, we are running a little overtime 362 00:21:03,600 --> 00:21:06,320 Speaker 1: through no fault of anyone here, so we will keep 363 00:21:06,359 --> 00:21:08,600 Speaker 1: the second half much much faster than the first. We'll 364 00:21:08,600 --> 00:21:10,359 Speaker 1: be back in a moment with a sleeper story of 365 00:21:10,480 --> 00:21:18,920 Speaker 1: the week. All right, Sean, we are looking for a 366 00:21:19,119 --> 00:21:22,200 Speaker 1: sleeper story of the week. Now. A sleeper story is, 367 00:21:22,240 --> 00:21:24,439 Speaker 1: of course, one that's flying under the radar a little bit, 368 00:21:24,520 --> 00:21:28,000 Speaker 1: not getting the attention that we feel that deserves. I'm 369 00:21:28,000 --> 00:21:30,640 Speaker 1: going to go first on this one, if that's okay. Yes, 370 00:21:32,480 --> 00:21:36,960 Speaker 1: Because anyone who knows me here we go knows that 371 00:21:37,080 --> 00:21:40,600 Speaker 1: I am a keen observer of the International Monetary Fund. 372 00:21:47,119 --> 00:21:49,480 Speaker 1: I love that, none of us in the studio I 373 00:21:49,560 --> 00:21:53,920 Speaker 1: want to keep a straight face at that. And what 374 00:21:54,080 --> 00:21:57,920 Speaker 1: I like about the IMF is that they're looking out 375 00:21:57,960 --> 00:22:00,720 Speaker 1: for us here in Australia. It's just like the two 376 00:22:00,760 --> 00:22:02,199 Speaker 1: of you heading off to the doctor I for your 377 00:22:02,760 --> 00:22:05,280 Speaker 1: annual check up as you get older and older and older. 378 00:22:06,080 --> 00:22:10,640 Speaker 1: The IMF does an annual health check of the Australian economy. 379 00:22:11,560 --> 00:22:15,240 Speaker 1: And you know what, it doesn't get enough attention. It 380 00:22:15,359 --> 00:22:20,399 Speaker 1: is a sleeper story and it deserves more attention because 381 00:22:20,440 --> 00:22:23,520 Speaker 1: what we have here is an almost impartial view of 382 00:22:23,560 --> 00:22:28,760 Speaker 1: what Australia needs to do to prepare itself for prepare 383 00:22:28,840 --> 00:22:32,680 Speaker 1: itself for prosperity. Goodness, I set myself up to fail 384 00:22:32,760 --> 00:22:37,600 Speaker 1: there to prepare itself for prosperity. Is this another one 385 00:22:37,600 --> 00:22:40,520 Speaker 1: of those Lao zoo things? Remember last week, Adam, they 386 00:22:40,600 --> 00:22:44,679 Speaker 1: started talking I'm not quoting any philosophers. I'm not quoting 387 00:22:44,720 --> 00:22:49,119 Speaker 1: anyone else. Can I summarize it in summary, please, and 388 00:22:49,200 --> 00:22:51,920 Speaker 1: once again with a focus on brevity. And as we 389 00:22:52,040 --> 00:22:56,960 Speaker 1: discussed concision, the IMF endorsed what the RBA is doing 390 00:22:57,040 --> 00:22:58,639 Speaker 1: on rates right now. It issued a bit of a 391 00:22:58,680 --> 00:23:01,359 Speaker 1: warning to the government on bending, particularly the cost of 392 00:23:01,440 --> 00:23:03,879 Speaker 1: living relief that goes to everybody, not just those who 393 00:23:03,960 --> 00:23:05,239 Speaker 1: need it. So I'm just going to wrap up all 394 00:23:05,240 --> 00:23:07,080 Speaker 1: the kind of key details of the story into one. 395 00:23:07,160 --> 00:23:08,479 Speaker 1: Get the details out of the way so I can 396 00:23:08,520 --> 00:23:12,280 Speaker 1: get to the fun part. They warned that the rates 397 00:23:12,320 --> 00:23:14,480 Speaker 1: may need to rise if the work to get inflation 398 00:23:14,960 --> 00:23:16,520 Speaker 1: down doesn't continue. 399 00:23:17,560 --> 00:23:17,840 Speaker 4: There we go. 400 00:23:17,920 --> 00:23:19,960 Speaker 1: That's pretty much it. Now to the good stuff. 401 00:23:19,960 --> 00:23:22,440 Speaker 3: God, God, is lot going on in your mind when 402 00:23:22,480 --> 00:23:25,240 Speaker 3: you're trying to kind of do these stories, especially the 403 00:23:25,400 --> 00:23:28,320 Speaker 3: economics IMF. And you can see your mind like you're 404 00:23:28,359 --> 00:23:30,440 Speaker 3: just trying to skip that stuff. We can get to 405 00:23:30,480 --> 00:23:33,919 Speaker 3: the metal drama. Yeah, And you can see your mind working. 406 00:23:34,280 --> 00:23:37,480 Speaker 2: What is the minimum number of facts I need to 407 00:23:37,560 --> 00:23:38,880 Speaker 2: get only right? 408 00:23:39,240 --> 00:23:42,880 Speaker 1: I am riddled, riddled with self doubt when it comes 409 00:23:42,960 --> 00:23:50,120 Speaker 1: to facts and the economy. But where I have an 410 00:23:50,359 --> 00:23:54,680 Speaker 1: unlimited supply of self belief and self confidence is in 411 00:23:54,880 --> 00:23:55,560 Speaker 1: the melodrama. 412 00:23:55,720 --> 00:23:57,640 Speaker 3: All right, let's go, let it flow. 413 00:23:58,040 --> 00:24:00,880 Speaker 1: Okay, this is not melodrama. This is actually, this is real, 414 00:24:00,960 --> 00:24:03,320 Speaker 1: this is legit. I need to talk to you about 415 00:24:03,320 --> 00:24:06,080 Speaker 1: the reform part of what the IMF said, and this 416 00:24:06,280 --> 00:24:09,720 Speaker 1: is this quite frankly, this is where it gets really 417 00:24:09,760 --> 00:24:12,600 Speaker 1: interesting because the IMF has been really blunt. They've been 418 00:24:12,680 --> 00:24:15,439 Speaker 1: quite frank here. They're calling from an overhaul of tax systems, 419 00:24:15,520 --> 00:24:18,960 Speaker 1: phasing out super tax concessions and the capital gains tax 420 00:24:19,119 --> 00:24:22,159 Speaker 1: discount to fund a reduction in personal income and company 421 00:24:22,200 --> 00:24:24,240 Speaker 1: tax rates. Now this is all pie and the sky stuff. Really, 422 00:24:24,240 --> 00:24:26,000 Speaker 1: the IMF can say all of this because they are 423 00:24:26,080 --> 00:24:29,240 Speaker 1: removed from it. They are vastly that they are well 424 00:24:29,320 --> 00:24:33,600 Speaker 1: and truly removed from any political realities within Australia. Right, 425 00:24:34,280 --> 00:24:37,160 Speaker 1: And maybe that is why this is a sleeper story, 426 00:24:37,600 --> 00:24:40,040 Speaker 1: because the IMF is commenting from the other side of 427 00:24:40,080 --> 00:24:42,640 Speaker 1: the world. It's not here. It's not a political leader 428 00:24:43,240 --> 00:24:46,000 Speaker 1: being bold calling for a reform. And you know what, 429 00:24:46,840 --> 00:24:50,720 Speaker 1: you know something when I heard. 430 00:24:54,480 --> 00:24:56,119 Speaker 3: Just to look on your face, here we go. 431 00:24:57,600 --> 00:25:01,119 Speaker 5: When I heard about this story, I thought of you, Adam, 432 00:25:02,760 --> 00:25:08,679 Speaker 5: because you you are a true advocate for tax reform. 433 00:25:09,280 --> 00:25:14,040 Speaker 5: You are deeply, deeply passionate about the need for change. 434 00:25:14,080 --> 00:25:17,359 Speaker 5: And I thought for a second, I thought, I reckon 435 00:25:17,400 --> 00:25:23,800 Speaker 5: the IMF didn't go hard enough. I thought, where was 436 00:25:23,840 --> 00:25:26,800 Speaker 5: the call for the raising of the GST, the broadening 437 00:25:27,119 --> 00:25:29,280 Speaker 5: of the base for the GST. 438 00:25:29,480 --> 00:25:31,800 Speaker 1: The world is doing this kind of thing, and where not? 439 00:25:32,680 --> 00:25:41,080 Speaker 1: We are being left behind on bold moves because nobody 440 00:25:41,280 --> 00:25:44,960 Speaker 1: is willing to do something, even say something that is 441 00:25:45,080 --> 00:25:49,600 Speaker 1: politically unpopular. Well, I am going to use the sleeper 442 00:25:49,680 --> 00:25:52,720 Speaker 1: story this week to highlight the work of the International 443 00:25:52,760 --> 00:25:58,000 Speaker 1: Monetary Fund, that poor downtrodden organization that needs me to 444 00:25:58,080 --> 00:26:01,359 Speaker 1: give them this platform. This is a true sleeper story 445 00:26:02,280 --> 00:26:04,920 Speaker 1: for the people. This is for you, Finn, and for 446 00:26:05,040 --> 00:26:05,960 Speaker 1: you Adam as well. 447 00:26:06,040 --> 00:26:08,280 Speaker 3: Well, I'm trying to work out with the sleeping parties. 448 00:26:08,640 --> 00:26:11,240 Speaker 1: Well, there's the fact that no one really gives this 449 00:26:11,760 --> 00:26:14,320 Speaker 1: the attention that it needs because these. 450 00:26:14,280 --> 00:26:16,560 Speaker 3: Are ever going to happen exactly. 451 00:26:16,840 --> 00:26:19,480 Speaker 1: But we have a blueprint, you know what, We have 452 00:26:19,600 --> 00:26:24,920 Speaker 1: a blueprint here and and maybe maybe people dismiss it 453 00:26:25,040 --> 00:26:27,639 Speaker 1: like you Sean, maybe we shouldn't be so dismissive, and 454 00:26:27,800 --> 00:26:30,600 Speaker 1: that's when it could actually happen. A groundswell of support 455 00:26:31,040 --> 00:26:35,760 Speaker 1: a tax based coup. Perhaps I don't know. I'm just spitballing. 456 00:26:36,160 --> 00:26:39,639 Speaker 3: Can I you are? Can I just I didn't like 457 00:26:39,680 --> 00:26:42,600 Speaker 3: to comment on Michael's stories, but that was senseful when 458 00:26:43,280 --> 00:26:45,720 Speaker 3: that was appalling, like as a sleeper story, that was 459 00:26:45,760 --> 00:26:46,840 Speaker 3: one of your worst efforts. 460 00:26:46,880 --> 00:26:49,919 Speaker 1: Ever, I don't think so. And we'll see what Adam 461 00:26:50,000 --> 00:26:57,080 Speaker 1: thinks I mean later. Oh, it's got it's got tax reform. Ah, 462 00:26:57,840 --> 00:26:59,520 Speaker 1: it's got tax reform. 463 00:27:03,320 --> 00:27:06,760 Speaker 3: What my sleever story has is meaning it's a great, 464 00:27:07,720 --> 00:27:12,240 Speaker 3: great sleever story. It's how fast the hydrogen energy sector 465 00:27:12,400 --> 00:27:17,080 Speaker 3: is going backwards, as demonstrated by Origin Energy used decision 466 00:27:17,119 --> 00:27:19,879 Speaker 3: to pull the plug on its investments in the technology. 467 00:27:20,280 --> 00:27:24,159 Speaker 3: Hydrogen has been lauded as a clean energy source with 468 00:27:24,280 --> 00:27:27,160 Speaker 3: potential uses, particularly in heavy industry around transport that type 469 00:27:27,200 --> 00:27:30,560 Speaker 3: of stuff. Problem is, this week we found out that 470 00:27:30,760 --> 00:27:34,879 Speaker 3: not only is it expensive, but the technology breakthroughs just 471 00:27:35,000 --> 00:27:38,040 Speaker 3: aren't happening fast enough, and that will put more pressure 472 00:27:38,080 --> 00:27:41,440 Speaker 3: on other renewables like wind and solar. It'll ensure gas 473 00:27:41,520 --> 00:27:43,239 Speaker 3: plays a role in the energy mix for a long 474 00:27:43,320 --> 00:27:43,840 Speaker 3: time to come. 475 00:27:44,160 --> 00:27:44,320 Speaker 2: Now. 476 00:27:44,400 --> 00:27:47,359 Speaker 3: Origin chief executive Frank Collaborat said it was clear that 477 00:27:47,480 --> 00:27:51,119 Speaker 3: the hydrogen market was developing more slowly than anticipated, and 478 00:27:51,720 --> 00:27:55,240 Speaker 3: there remains risks in terms of costs and technology advancements. 479 00:27:55,840 --> 00:27:58,840 Speaker 3: Remember in July Fortescue drop plants for green hydrogen production, 480 00:27:59,240 --> 00:28:01,480 Speaker 3: the alb and Easy. It has this thing called the 481 00:28:01,560 --> 00:28:04,600 Speaker 3: Hydrogen Headstart Program, about six point seven billion dollars in 482 00:28:04,760 --> 00:28:08,560 Speaker 3: production tax credits plus a subsidy for the production of 483 00:28:09,040 --> 00:28:13,680 Speaker 3: hydro hydrogen energy. But who's going to take advantage of it. 484 00:28:13,800 --> 00:28:15,800 Speaker 3: Two of the biggest players now out of the market. 485 00:28:15,880 --> 00:28:18,600 Speaker 3: The government says Australia has the largest pipeline of hydrogen 486 00:28:18,680 --> 00:28:21,720 Speaker 3: projects in the country, value about two hundred and twenty 487 00:28:21,720 --> 00:28:24,520 Speaker 3: five billion dollars. But they're just not working. They're not 488 00:28:24,640 --> 00:28:26,880 Speaker 3: coming to fruition. You can say that all you want, 489 00:28:27,680 --> 00:28:30,520 Speaker 3: but when you've got energy and FORESCU pulling out of 490 00:28:30,520 --> 00:28:34,160 Speaker 3: the market, or actually pulling back from the market, it's 491 00:28:34,240 --> 00:28:38,440 Speaker 3: a real problem. I think hydrogen energy it's not quite dead, 492 00:28:38,520 --> 00:28:41,240 Speaker 3: but it's what we found out this week is that 493 00:28:41,280 --> 00:28:44,320 Speaker 3: it's not really a fuel for the future, not in 494 00:28:44,400 --> 00:28:51,480 Speaker 3: the short term. Concise sensible with meaning no acronyms. Over 495 00:28:51,520 --> 00:28:51,680 Speaker 3: to you. 496 00:28:52,480 --> 00:28:55,280 Speaker 2: Well, each story has their own level of achievement. 497 00:28:56,600 --> 00:28:57,600 Speaker 3: What did Michael achieve? 498 00:28:58,320 --> 00:29:01,440 Speaker 2: Well, look, I think have to disclose something here. 499 00:29:02,160 --> 00:29:05,560 Speaker 4: The words that Michael said, it was like I was 500 00:29:05,680 --> 00:29:10,560 Speaker 4: being channeled in some of that, and I suspect that 501 00:29:10,920 --> 00:29:15,600 Speaker 4: maybe there's a little sort of of me during that story. 502 00:29:16,160 --> 00:29:21,480 Speaker 1: May I confess something here? Yesterday I was talking to 503 00:29:21,560 --> 00:29:25,120 Speaker 1: Adam about some other things all together and just completely 504 00:29:25,200 --> 00:29:26,040 Speaker 1: out of the blue. 505 00:29:25,920 --> 00:29:28,280 Speaker 2: May have gone on a spray, completely out of the blue. 506 00:29:28,320 --> 00:29:32,320 Speaker 1: I just said to Adam, said, hey, Adam, what do 507 00:29:32,400 --> 00:29:37,920 Speaker 1: you think about the IMF? The words didn't go hard enough? 508 00:29:39,400 --> 00:29:41,560 Speaker 1: She just goes, you know what, they didn't go hard enough. 509 00:29:41,600 --> 00:29:43,120 Speaker 1: Where was the call for the raising of the DST? 510 00:29:43,600 --> 00:29:46,360 Speaker 1: And I was like, uh huh ha, keep going, keep going, 511 00:29:46,440 --> 00:29:49,520 Speaker 1: keep going. Wrote it all down word for word, used 512 00:29:49,560 --> 00:29:52,320 Speaker 1: it today. So if I don't win, Adam, it is 513 00:29:52,400 --> 00:29:55,840 Speaker 1: a travesy, it is a gross miscarriage of justice. 514 00:29:56,920 --> 00:29:59,240 Speaker 4: Well, it's also the fact that I obviously sound like 515 00:29:59,320 --> 00:30:01,480 Speaker 4: a crashing bore at times. 516 00:30:01,840 --> 00:30:04,360 Speaker 2: And Michael, thank you for hearing me out. 517 00:30:05,240 --> 00:30:09,560 Speaker 4: Both stories are about market distortion, you know, and how 518 00:30:09,640 --> 00:30:14,280 Speaker 4: that should be reformed. On this one, I think for 519 00:30:14,520 --> 00:30:18,680 Speaker 4: the timeliness of it, the sleeper and hydrogen has to 520 00:30:18,800 --> 00:30:19,360 Speaker 4: go together. 521 00:30:20,240 --> 00:30:22,880 Speaker 2: You know, this is really a story about artificial support. 522 00:30:23,120 --> 00:30:24,520 Speaker 2: Without the adequate science. 523 00:30:24,960 --> 00:30:27,760 Speaker 4: Obviously, Twiggy Forest made a massive plunge out it had 524 00:30:27,760 --> 00:30:30,520 Speaker 4: to pull back. The government has enabled a lot of 525 00:30:30,600 --> 00:30:34,160 Speaker 4: that and it's really trying to distort the market and 526 00:30:34,440 --> 00:30:36,880 Speaker 4: it just hasn't worked in this instance. So, Sean, I 527 00:30:36,920 --> 00:30:38,680 Speaker 4: think you went on sleeper story of the week. 528 00:30:38,840 --> 00:30:40,840 Speaker 3: Is Michael getting any points for the IMF story? 529 00:30:41,720 --> 00:30:41,880 Speaker 2: Oh? 530 00:30:42,000 --> 00:30:45,440 Speaker 4: Yeah, many, it's reform and tax but it's not going 531 00:30:45,480 --> 00:30:47,280 Speaker 4: to happen me subjective bis. 532 00:30:47,520 --> 00:30:49,720 Speaker 1: Let's just go on a favorite story, this story that's 533 00:30:49,760 --> 00:30:51,760 Speaker 1: not getting my attention that it deserves because there are 534 00:30:51,800 --> 00:30:53,200 Speaker 1: some good ideas there. 535 00:30:53,320 --> 00:30:55,920 Speaker 2: This is the this is what a sleeper story story. 536 00:30:56,520 --> 00:31:01,840 Speaker 3: My favorite story comes from Japan because I've always wanted 537 00:31:01,880 --> 00:31:03,880 Speaker 3: to sign up to a gym where I didn't have 538 00:31:04,040 --> 00:31:10,560 Speaker 3: to exercise. There's an increasingly popular gym franchise in Japan 539 00:31:10,640 --> 00:31:19,120 Speaker 3: that offers important things like teeth whitening, manicure equipment, photo booths, 540 00:31:20,480 --> 00:31:23,400 Speaker 3: you can actually use weights if you want. Oh that's 541 00:31:23,400 --> 00:31:28,680 Speaker 3: the sort of margins right. It's called Chocko's App cho 542 00:31:29,000 --> 00:31:32,800 Speaker 3: Ceo z ap Choco's App. It's part of a billion 543 00:31:32,880 --> 00:31:36,160 Speaker 3: dollar fitness company that made its name in high end 544 00:31:36,240 --> 00:31:38,880 Speaker 3: personal training. This is the business partner just for you. 545 00:31:39,640 --> 00:31:41,760 Speaker 2: Thank you, covid hit. 546 00:31:42,240 --> 00:31:45,360 Speaker 3: It had to rethink, so it tapped into sort of 547 00:31:45,400 --> 00:31:48,840 Speaker 3: the more casual, more frugal gym user. In less than 548 00:31:48,880 --> 00:31:53,640 Speaker 3: two years, Choco's aapp has opened fifteen hundred locations, has 549 00:31:53,880 --> 00:31:59,040 Speaker 3: one point two million plus members. It charges about twenty 550 00:31:59,200 --> 00:32:02,800 Speaker 3: US dollars. Typically a Japanese gym charges three or four 551 00:32:02,880 --> 00:32:05,680 Speaker 3: times that amount, so it has these masses of people. 552 00:32:06,160 --> 00:32:08,680 Speaker 3: They say it's working because people spend more time working 553 00:32:08,760 --> 00:32:11,480 Speaker 3: flexible hours and from home, and because members are seeking 554 00:32:11,520 --> 00:32:14,640 Speaker 3: out more and riching experiences while keeping fit. I say 555 00:32:14,680 --> 00:32:17,120 Speaker 3: it's working because you can go to the gym and 556 00:32:17,280 --> 00:32:21,760 Speaker 3: not break out a sweat, and you can casually boast 557 00:32:21,800 --> 00:32:22,720 Speaker 3: about your gym. 558 00:32:22,920 --> 00:32:25,000 Speaker 2: Membership and get your nails did. 559 00:32:25,800 --> 00:32:28,479 Speaker 3: Absolute genius. Absolute genius. 560 00:32:29,000 --> 00:32:32,520 Speaker 1: This is a good story. I enjoy that one. It's 561 00:32:32,600 --> 00:32:35,000 Speaker 1: nice to finish on a positive note and not kind 562 00:32:35,000 --> 00:32:35,920 Speaker 1: of a personal attack. 563 00:32:37,200 --> 00:32:37,600 Speaker 3: Here we go. 564 00:32:38,280 --> 00:32:41,520 Speaker 1: Yeah, my favorite story is a simple tale of thrift, 565 00:32:42,480 --> 00:32:46,560 Speaker 1: of surviving the cost of living crisis, and the abject 566 00:32:46,760 --> 00:32:48,960 Speaker 1: snobbery of one Sean Alma. 567 00:32:49,160 --> 00:32:49,640 Speaker 3: The story. 568 00:32:52,400 --> 00:32:55,440 Speaker 1: This story itself is a very straightforward run. It's a 569 00:32:55,480 --> 00:33:00,240 Speaker 1: fascinating one. Vintage shopping, as we discussed through the week 570 00:33:00,280 --> 00:33:03,160 Speaker 1: on the podcast, is booming now. Vintage shopping makes it 571 00:33:03,280 --> 00:33:05,880 Speaker 1: sound very very cool, but it is. It is essentially 572 00:33:06,080 --> 00:33:09,040 Speaker 1: just it is buying secondhand clothes. Think Vinnie's, think the Salvos, 573 00:33:09,080 --> 00:33:14,080 Speaker 1: think you kind of your community op shop, except think 574 00:33:14,520 --> 00:33:18,920 Speaker 1: bigger now because in the US sales they are off 575 00:33:19,040 --> 00:33:22,840 Speaker 1: the charts. It is staggering the growth of this industry, 576 00:33:23,000 --> 00:33:27,280 Speaker 1: growing at seven times the pace of the broader retail industry. 577 00:33:27,720 --> 00:33:31,600 Speaker 1: In fact, the demand is so strong the big retailers 578 00:33:31,680 --> 00:33:35,480 Speaker 1: like Banana Republic, h and M, Lulu, Lemon, j Crue, 579 00:33:35,640 --> 00:33:39,720 Speaker 1: Abercrombie and Fitch, they're all getting into it selling preloved clothes. 580 00:33:39,800 --> 00:33:39,920 Speaker 2: Now. 581 00:33:40,640 --> 00:33:43,120 Speaker 1: I think this is great for a few reasons. Number one, 582 00:33:43,560 --> 00:33:46,240 Speaker 1: buying and chucking out cheaply made clothes kind of fast 583 00:33:46,280 --> 00:33:50,600 Speaker 1: fashion is terrible, terrible for the environment. This is infinitely 584 00:33:51,080 --> 00:33:54,200 Speaker 1: more sustainable. I don't actually know technically if it is infinite. 585 00:33:54,920 --> 00:33:57,880 Speaker 1: Probably there is probably a number for it, but that's 586 00:33:58,120 --> 00:33:58,920 Speaker 1: team hyperbole. 587 00:33:59,080 --> 00:34:02,240 Speaker 3: Judging from how Michael turns up in the studio, he 588 00:34:02,400 --> 00:34:05,000 Speaker 3: doesn't throw out his clothes, not quickly anyway. 589 00:34:06,080 --> 00:34:08,080 Speaker 1: I'll tell you what this jumper that I'm wearing at 590 00:34:08,120 --> 00:34:13,040 Speaker 1: the moment green sloppy joe that I just tossed on 591 00:34:13,160 --> 00:34:15,239 Speaker 1: whenever it's like a bit cold and you only wear 592 00:34:15,280 --> 00:34:17,200 Speaker 1: it for like half an hour. I wore it the 593 00:34:17,239 --> 00:34:20,360 Speaker 1: other day when I did a video for TikTok, and 594 00:34:20,480 --> 00:34:23,440 Speaker 1: it was a video where I was in Bunnings. Someone 595 00:34:23,640 --> 00:34:30,480 Speaker 1: commented rather cruelly on the TikTok video about the jumper 596 00:34:30,760 --> 00:34:33,839 Speaker 1: that I was wearing, and they decided that their first 597 00:34:33,920 --> 00:34:37,200 Speaker 1: comment wasn't enough, so they came back and had a 598 00:34:37,239 --> 00:34:40,160 Speaker 1: second crack. This is without any kind of reaction from me. 599 00:34:40,280 --> 00:34:42,680 Speaker 1: I just saw both comments one after the other, and 600 00:34:42,760 --> 00:34:46,640 Speaker 1: the second one was something along the lines of it 601 00:34:46,760 --> 00:34:50,200 Speaker 1: must be beating the ladies off with a jumper like that, 602 00:34:52,600 --> 00:34:57,759 Speaker 1: and you know what, it has really really really got 603 00:34:57,880 --> 00:35:01,600 Speaker 1: under my skin. So we're wearing the jumper though. Anyway, 604 00:35:01,760 --> 00:35:05,560 Speaker 1: fast fashion terrible for the environment. So recycling, reusing, reselling 605 00:35:05,640 --> 00:35:08,279 Speaker 1: clothes fantastic. That's a big tick. That's number one one 606 00:35:08,320 --> 00:35:10,479 Speaker 1: reason why it's so good. Second reason why this story 607 00:35:10,560 --> 00:35:12,960 Speaker 1: is so good. It is a revival of bricks and 608 00:35:13,080 --> 00:35:16,400 Speaker 1: mortar shopping. People aren't buying secondhand online, it is in store. 609 00:35:16,480 --> 00:35:18,960 Speaker 1: That's fascinating. That's another good point. That's number two. The 610 00:35:19,120 --> 00:35:22,200 Speaker 1: third reason. It is cost effective. All right, nobody has 611 00:35:22,239 --> 00:35:24,960 Speaker 1: a fortune to spend on clothes or anything really, So 612 00:35:25,160 --> 00:35:29,240 Speaker 1: this is removing at last the taboo from secondhand shopping, 613 00:35:29,560 --> 00:35:32,680 Speaker 1: a taboo that has been perpetuated this week by one 614 00:35:32,760 --> 00:35:36,320 Speaker 1: Sean Aylmer, who declared, on fear and greed that he 615 00:35:36,400 --> 00:35:40,080 Speaker 1: would never do it, never do it, for all kinds 616 00:35:40,080 --> 00:35:42,719 Speaker 1: of reasons, mostly hygiene, I think it was. And I 617 00:35:42,840 --> 00:35:46,000 Speaker 1: am here, I am here as the man of the 618 00:35:46,080 --> 00:35:50,560 Speaker 1: people to say, come on down, Sean, from your ivory tower, 619 00:35:51,360 --> 00:35:55,120 Speaker 1: come on down, if you were in trouble, Sean, if 620 00:35:55,200 --> 00:35:58,160 Speaker 1: you were in trouble, I would give you the shirt 621 00:35:58,360 --> 00:36:00,840 Speaker 1: off my back. But you wouldn't want that, would you. No, 622 00:36:01,040 --> 00:36:01,759 Speaker 1: you wouldn't put it on. 623 00:36:01,840 --> 00:36:04,279 Speaker 3: I wouldn't mind that green sloppy joe though. 624 00:36:04,560 --> 00:36:07,600 Speaker 1: You Sean, You Sean would never walk a mile in 625 00:36:07,680 --> 00:36:09,960 Speaker 1: somebody else's shoes because you'd never put them on in 626 00:36:10,040 --> 00:36:12,520 Speaker 1: the first place. Because it's a bit icky, isn't it. 627 00:36:12,960 --> 00:36:17,239 Speaker 1: It is an outrage. It is snobbery of the highest order. 628 00:36:17,680 --> 00:36:21,880 Speaker 1: And I'm here to say enough enough of the snobbery. 629 00:36:22,400 --> 00:36:25,920 Speaker 1: Bring back secondhand shopping. I'm glad to see that vintage 630 00:36:25,920 --> 00:36:28,439 Speaker 1: shopping is booming. It is my favorite story of the week. 631 00:36:28,960 --> 00:36:31,880 Speaker 1: And Finn, I hope that I have done you proud 632 00:36:31,960 --> 00:36:33,960 Speaker 1: with my personal attacks on a colleague and friend. 633 00:36:37,440 --> 00:36:41,040 Speaker 3: Wha wha, wha, wha wha. Let's leave it at colleague. Oh. 634 00:36:43,800 --> 00:36:47,080 Speaker 4: I love this Japan's Chocko's app and how they've made 635 00:36:47,080 --> 00:36:47,880 Speaker 4: a business out of it. 636 00:36:48,480 --> 00:36:50,640 Speaker 2: Incredible craze for adults. 637 00:36:50,880 --> 00:36:55,960 Speaker 4: Really yes, amazing ray of services that they've commercialized. And 638 00:36:56,040 --> 00:37:00,759 Speaker 4: I do love the vintage clothing thrift too. Actually, I 639 00:37:00,840 --> 00:37:04,680 Speaker 4: think it's fantastic. So I'm going to have to give 640 00:37:04,680 --> 00:37:05,960 Speaker 4: you a dead heat on this story. 641 00:37:08,040 --> 00:37:11,160 Speaker 1: I don't like that, Oh I do, So what's that do? 642 00:37:11,320 --> 00:37:12,640 Speaker 3: I believe that's two and a half to one and 643 00:37:12,680 --> 00:37:12,959 Speaker 3: a half. 644 00:37:13,120 --> 00:37:15,480 Speaker 1: It is so okay, I can still win it on 645 00:37:15,560 --> 00:37:16,000 Speaker 1: the points. 646 00:37:17,160 --> 00:37:18,200 Speaker 3: On the points, that's true. 647 00:37:18,239 --> 00:37:22,040 Speaker 4: In theory, Well, in actual fact, it's ninety two points each. 648 00:37:22,200 --> 00:37:24,520 Speaker 4: It's a dead heat on the points. But se Sean 649 00:37:24,560 --> 00:37:28,560 Speaker 4: wins on the story count. How can I how. 650 00:37:29,000 --> 00:37:31,000 Speaker 2: Sean want to win on story. 651 00:37:31,280 --> 00:37:34,360 Speaker 3: Judging criteria is appalling. I'm going goodbye. 652 00:37:34,920 --> 00:37:37,400 Speaker 1: I have sown the seeds of descent between the two 653 00:37:37,480 --> 00:37:41,360 Speaker 1: of you are now criticizing each other instead of criticizing me, 654 00:37:41,960 --> 00:37:43,399 Speaker 1: and that is the way I like to win things. 655 00:37:43,640 --> 00:37:48,520 Speaker 1: Congratulations Sean on your rather hollow victory, but it was 656 00:37:48,560 --> 00:37:55,040 Speaker 1: a victory. Nonetheless, suppose it's kind of a victory anyway. 657 00:37:55,719 --> 00:37:58,200 Speaker 2: Thank you Adam, thank you Michael, and thank you Shure. 658 00:37:58,760 --> 00:38:01,279 Speaker 1: Make sure you're following the podcast and please join us 659 00:38:01,440 --> 00:38:05,600 Speaker 1: online on LinkedIn, Instagram, Facebook x and check out my 660 00:38:05,680 --> 00:38:08,120 Speaker 1: jumper on TikTok oh Michael Thompson. And that was fear 661 00:38:08,160 --> 00:38:09,400 Speaker 1: and Greed. Have a great weekend.