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Speaker 1: This is the weekend edition of Fear and Greed business

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Speaker 1: news you can use. I'm Michael Thompson and good morning

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Speaker 1: Natalie McDonald.

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Speaker 2: Good morning, Michael, Natalie.

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Speaker 1: Our weekend show is all about the two of us,

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Speaker 1: each nominating what we think is the biggest business news

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Speaker 1: story of the week, and there have been some big

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Speaker 1: ones so far. This week, the most remarkable story, we're

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Speaker 1: looking for a mystery category. We change that every week

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Speaker 1: just to keep things exciting, and then our favorite business

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Speaker 1: related story. It is a competition, and I mean, I

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Speaker 1: don't even remember the outcome of last week's. It doesn't

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Speaker 1: really matter because every week is a new week. We

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Speaker 1: are joined by a judge to pick a winner, and

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Speaker 1: that judges our Fear and Greed colleague, Adam Lang Adam, good.

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Speaker 3: Morning, Hi, Michael, Hi Natalie. Hi.

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Speaker 1: Also I won last week in the past. We move forward.

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Speaker 1: We are always looking forward, unless, of course I win.

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Speaker 2: It, which case you're not looking for because we are

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Speaker 2: looking back at the week.

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Speaker 1: That was early points scored, Adam, looking for today a

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Speaker 1: set of very strictly applied criteria. What is on your list, Adam?

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Speaker 4: Okay, chiefly economic impact, but we want timeliness and topicality.

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Speaker 4: It should if it can play to my subjective bias.

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Speaker 4: And a touch, only a touch of melodrama.

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Speaker 1: Just a touch. And all right, let's do it biggest

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Speaker 1: biggest story of the week. And you are right. I

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Speaker 1: shouldn't robbed you with your victory last week. It does

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Speaker 1: count and as your reward, as your prize, you get

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Speaker 1: to go first for the biggest story of the week.

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Speaker 2: Alrighty bucklin. Just when we thought we had rates figured out,

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Speaker 2: we get what one economist referred to as and I

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Speaker 2: do believe that this is a technical term, an absolute shocker.

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Speaker 2: Australia's inflation rates surged to two point eight percent in July.

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Speaker 2: That's the highest annual rates since this time last year.

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Speaker 2: It was fueled by rising housing costs, alcohol, and the

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Speaker 2: end of state energy rebates. While economists and even the

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Speaker 2: Treasurer were quick to stress caution in interpreting monthly figures,

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Speaker 2: we all know what this means. That spike denting expectations

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Speaker 2: of back to back interest rate cuts following the RBA's

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Speaker 2: twenty five basis point reduction to three point six percent

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Speaker 2: earlier this month. While another cut is still possible by November,

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Speaker 2: expectations for a September reduction, they are well diminished. The

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Speaker 2: RBA's meeting minutes also showing that the board weighed heavily

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Speaker 2: the resilience of the labor market, provisioning a buffer against

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Speaker 2: the economic downturn and allowing time for that inflation to moderate.

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Speaker 2: The meeting minut's really reiterating the RBA's dual mandate to

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Speaker 2: restore press stability without jeopardizing jobs.

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Speaker 1: So, no, biggie, you're right, it is no biggie, it

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Speaker 1: is not the biggest story of the week. And you

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Speaker 1: heard that, Adam. You heard that concession. We had a

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Speaker 1: bump a week of earnings results, Adam. But if I

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Speaker 1: was to choose just one of those results this week,

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Speaker 1: that really demonstrates just how varied these results have been,

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Speaker 1: and more importantly, how extreme the shareholder reactions have been.

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Speaker 1: The investor reactions have been enormous, where you just suddenly

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Speaker 1: have these massive sell offs or everyone everybody jumping on

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Speaker 1: board Coals versus Woolies this week, this is the standout

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Speaker 1: clash of reporting season, and we saw it happen on

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Speaker 1: two days, two consecutive days this week. We had coals

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Speaker 1: delivering profit growth and being rewarded with a nine percent

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Speaker 1: jump in its share price. We, on the other hand,

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Speaker 1: had Woolworths posting a seventeen percent earnings full and a

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Speaker 1: fifteen percent dive in its share price. That is a

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Speaker 1: plummet So on one hand, nine percent up, the other hand,

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Speaker 1: fifteen percent down on consecutive days. It is extraordinary. You

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Speaker 1: had the wooly ceo, Amanda. You're looking very intense and

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Speaker 1: sleep at.

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Speaker 3: My steely resolve that you're looking at.

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Speaker 1: Have you seen the movie Paddington?

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Speaker 2: I thought you were going to say Predator, but Puddington.

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Speaker 1: Where he does what he refers to as a hard

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Speaker 1: stare and all of a sudden he stared really really

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Speaker 1: really hard at someone and they get all hot and uncomfortable.

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Speaker 1: That is what's happening right now.

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Speaker 3: It is hot and uncomfortable.

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Speaker 1: It is me, Adam because your stare has so much.

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Speaker 3: You're hot and I'm uncomfortable.

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Speaker 1: They We're all a little bit uncomfortable in the studio

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Speaker 1: right now. You know who else is uncomfortable, Amanda Bardwell,

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Speaker 1: the CEO of Woolworths. Because of this, and because of

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Speaker 1: the direct comparison then with the performance of Colls, we've

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Speaker 1: had the Wooly CEO basically struggling to explain why sales

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Speaker 1: and profits have lagged so badly, despite they are really

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Speaker 1: aggressive on their attempts to reward consumers. They've had a

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Speaker 1: one hundred million dollar price cut program trying to rebuild

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Speaker 1: that connection with customers. That there's been a lot of

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Speaker 1: damage done to the brand open recent years, adding to

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Speaker 1: the pain for Woollies. Big W lost thirty five million dollars,

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Speaker 1: which was a sharp reversal from last year's profit. And

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Speaker 1: if we do it at comparison with Kmart, which is

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Speaker 1: owned by Wesfarmers, not by Cols, but it is the

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Speaker 1: biggest competitor to Big W, you had Kmart raking nearly

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Speaker 1: a billion dollars And so suddenly go, Okay, what is

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Speaker 1: big W doing wrong that Kmart is doing so so right?

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Speaker 1: Did I make the right choice in picking Cole's versus

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Speaker 1: Woolies for my profit results?

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Speaker 3: Yes, not early guidance.

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Speaker 1: No, I'm not at a rhetorical question, because I did

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Speaker 1: think about picking quantuses two point three to nine billion

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Speaker 1: dollar profit, which is in fact its second largest profit

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Speaker 1: of all time, and shows that hey, despite all of

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Speaker 1: Quantus's previous sins, all is forgiven apparently in the eyes

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Speaker 1: of passengers and we just want to travel. Maybe I

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Speaker 1: could have chosen Domino's first loss in two decades, and

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Speaker 1: Jack Cowan's plan to scrap discounts simplify the business because

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Speaker 1: he says, customers just don't know, and this is a

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Speaker 1: quite what the hell they're going to get when they

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Speaker 1: order a pizza and their share price at share price

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Speaker 1: fell twenty two.

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Speaker 2: You're totally right, Michael. You could have chosen Domino's, or

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Speaker 2: you could have chosen Contests, but he didn't.

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Speaker 1: I know, I didn't.

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Speaker 2: You chose Coles versus will Wors and the like. And

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Speaker 2: I think why this is particularly prudent is because do

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Speaker 2: you know what those stores sell? They sell food and

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Speaker 2: they sell groceries, and do you and you know what?

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Speaker 2: Do you know what they do? You know what they

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Speaker 2: contribute to? What inflation? We're done here, We're done, Adam.

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Speaker 2: It's your turn. Adam's turn to speak now.

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Speaker 3: I think Natalie just did a microphone drop.

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Speaker 1: Did I do believe she did?

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Speaker 3: So?

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Speaker 1: Deliver your judgment and an outstanding profit report.

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Speaker 3: Rapped Natalie wins.

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Speaker 1: Even explainer just one yes.

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Speaker 3: And I didn't.

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Speaker 4: I tried to throw you off the scent by speaking

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Speaker 4: about Natalie's story for because you always say and you'll

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Speaker 4: lose if you're mentioned.

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Speaker 1: The fact that you were staring at me like Paddington

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Speaker 1: you shouldn't have like mythical is very real. It's just

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Speaker 1: from Peru.

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Speaker 4: Absolute shocker was the quote inflation at two point eight percent,

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Speaker 4: and it did really whack people, and it look, it

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Speaker 4: was hard to say this was coming. No one really

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Speaker 4: saw it going that high. Some of it was predictable,

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Speaker 4: you know, state grants or the rebates. Yeah, the rebates

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Speaker 4: that were present, we knew they would come off like

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Speaker 4: a feel rebate once upon a time, et cetera.

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Speaker 3: We knew they would come up, but other things didn't.

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Speaker 4: And there was this pervasive pressure on prices, which is

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Speaker 4: clearly still a problem.

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Speaker 1: But the trend is your friend, right, and the trend

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Speaker 1: is still it is still down, and it's still consistent,

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Speaker 1: and particularly when we've got some of the state based

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Speaker 1: rebates are slightly delayed, so we should see it correcting

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Speaker 1: next month.

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Speaker 4: It may be, but for you, I think the dual

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Speaker 4: mandate aspect of high employment and low price increases, low inflation,

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Speaker 4: it's a wrestle every time, and everyone was expecting there

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Speaker 4: was another rate cut coming soon and it probably isn't,

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Speaker 4: and so I think that is a really big impact

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Speaker 4: across the board to all debt. Whereas what you called

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Speaker 4: about in the Coals and Woolies stories absolutely remarkable, really

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Speaker 4: incredible plus nine percent Coals, minus fifteen percent on Woolies.

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Speaker 4: And then of course, as you called out Quantus and Domino's.

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Speaker 3: Really interesting reactions.

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Speaker 4: We talked about this last week where there is very

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Speaker 4: high valuation of publicly listed stocks, and I'm seeing some

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Speaker 4: of those behaviors come through when you're slightly off expectations,

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Speaker 4: really big influences on share prices.

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Speaker 1: Have you seen? This does feel like it has been

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Speaker 1: a more volatile reporting season in terms of the shareholder reactions.

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Speaker 1: The investor reactions have been extreme one way or the other.

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Speaker 1: It is not just kind of three percent up or down.

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Speaker 1: It is fifteen, twenty, twenty five percent movements in share

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Speaker 1: prices in one day.

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Speaker 4: Yeah, and we go back a week and it was

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Speaker 4: coming Wealth Bank really good profit, down five percent because

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Speaker 4: it wasn't as good as people had hoped. So I

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Speaker 4: think there's a lot of hopements.

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Speaker 1: Last week kind of thing as well, twenty odd percent

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Speaker 1: and I think in one day, it's.

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Speaker 2: Just I think it's going to be really interesting to

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Speaker 2: see what happens then into the next week, even two weeks,

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Speaker 2: because we saw even on a couple of days this

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Speaker 2: week where analysts starting to just sit back, are just

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Speaker 2: positions reassess ever so slightly. And I think obviously as

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Speaker 2: we as we come out the back end of what

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Speaker 2: has been an incredibly volatile reporting season, whether that's going

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Speaker 2: to come into play a little bit more and see

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Speaker 2: where those positions come in.

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Speaker 1: Yeah, it's almost like it's it's been an instinctive reaction initially,

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Speaker 1: and then the reason and the logic kind of settles in.

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Speaker 1: It sounds like we are unanimous that this is the

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Speaker 1: biggest story of the.

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Speaker 3: Week, No, second biggest.

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Speaker 1: Okay, yeah, is it worth a try?

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Speaker 2: Though I appreciate this as an audio format, I feel

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Speaker 2: like listeners should know the light just dimming behind Michael's eyes.

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Speaker 1: Ever see slight, the hope on my face that was

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Speaker 1: crushed by the two of you ganging up on me.

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Speaker 1: Moving on to the most remarkable story, I will go

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Speaker 1: first on this one.

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Speaker 3: The and He's back.

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Speaker 1: Well, No, I mean, as I've said, we always move forward.

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Speaker 1: We are not looking back.

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Speaker 3: Release the animal spirit, Michael of competition.

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Speaker 1: Here we go. The federal government ADAM is fast tracking

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Speaker 1: a plan to help first home buyers, all right. So

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Speaker 1: a little bit of context to this is in terms

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Speaker 1: of what they are bringing forward, the five percent deposit

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Speaker 1: scheme let spiers get a home without paying lenders mortgage insurance.

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Speaker 1: It was going to start next year. Now it starts

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Speaker 1: in October, and there's no caps on places or income limits.

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Speaker 1: Price thresholds are going up significantly. For instance, in Sydney

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Speaker 1: the maximums going up from nine hundred thousand dollars to

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Speaker 1: one and a half million dollars, Melbourne from eight hundred

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Speaker 1: thousand to nine hundred and fifty thousand, Brisbane seven hundred

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Speaker 1: thousand and two million dollars. They need to do that

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Speaker 1: because I mean, good luck finding a lot of properties

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Speaker 1: outside of units and things that kind of get under

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Speaker 1: those lower levels. That is all great, right, and it

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Speaker 1: should help people first home buyers get into the market.

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Speaker 1: But what is remarkable about this, truly extraordinarily remarkable about

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Speaker 1: this is the timing of it. We are heading into

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Speaker 1: spring selling season, clearance rates are at near decade highs,

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Speaker 1: house prices rows already nine percent so far this year.

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Speaker 1: We have had not one, not two, but three interest

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Speaker 1: rate cuts so far this year. The market is ready

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Speaker 1: to burst. Okay, This decision to bring forward the first

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Speaker 1: home Buyer's assistance is going to add more fuel to

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Speaker 1: what is already a blazing fire. Economists are lining up

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Speaker 1: to say the scheme is likely to inflate prices. We

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Speaker 1: could be in for a house price boom the likes

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Speaker 1: of which we have never seen before. And that is

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Speaker 1: a little flourish at the end. It is probably not

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Speaker 1: quite as bad as I'm making it out to be,

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Speaker 1: but it is remarkable, Adam, in every sense of the word. Natalie,

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Speaker 1: what is your entry?

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Speaker 2: I'm going to go with something that I don't think

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Speaker 2: would have been on anyone's been go card for the week,

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Speaker 2: and that is Australia's decision to sever diplomatic ties with Aram.

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Speaker 2: One so to offer context, even though I don't think

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Speaker 2: anyone really needs any. PM Anthony Albinizi announced that intelligence

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Speaker 2: gathered implicate it as IRGC in orchestrating two anti Semitic

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Speaker 2: arsen attacks in Sydney and Melbourne last year. The Iranian

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Speaker 2: Ambassador Australia, three other officials were expelled with seven days

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Speaker 2: to leave.

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Speaker 3: This.

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Speaker 2: If we're talking about historical, this represented the first expulsion

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Speaker 2: of a foreign ambassador by Australia since World War II.

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Speaker 1: Isn't that incredible?

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Speaker 2: It's historical, it's stunning. But what actually makes this most

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Speaker 2: remarkable to me anyway, Adam Mayfield differently, is the accusation

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Speaker 2: that has emerged since that Australia really failed to act sooner.

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Speaker 2: Three years ago, hundreds of Iranian Australians told a Senate

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Speaker 2: inquiry that they were they were being watched and they

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Speaker 2: were being harassed by agents of Iran. In fact, the

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Speaker 2: Senate inquiry received more than eleven hundred submissions, hundreds of

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Speaker 2: which had to be put on the record anonymously for

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Speaker 2: fear of repercussions. So there was conversation, there were warnings

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Speaker 2: already in the public space that the government didn't act

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Speaker 2: upon at that time, and in fact Opposition leader Susan

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Speaker 2: Lee challenging Anthony Albinezi about why they didn't act sooner

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Speaker 2: when the warnings were so clear and the risks were

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Speaker 2: so grave, Labor coming out and saying that it relied

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Speaker 2: on intelligence advice. Everything about this Historically, the data. The

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Speaker 2: fact that we had warning sooner is remarkable to me.

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Speaker 3: Good battle, Yeah, good stories.

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Speaker 4: So clearly it's a remarkable Natalie's story first time since

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Speaker 4: World War Two, and we heard again. I guess, probably

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Speaker 4: a real reminder of the constant threat that's around, that

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Speaker 4: we're being protected from Russia and China under high observation

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Speaker 4: it almost at all times. I love the use of

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Speaker 4: the term being go card excellent and it wasn't on

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Speaker 4: my bing go card this week. Federal government five percent

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Speaker 4: deposit scheme for first home buyers, So I think that's

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Speaker 4: just going to win on remarkability because of the economic

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Speaker 4: impact of what are two very remarkable stories. So I

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Speaker 4: think it's actually the biggest problem the country has at

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Speaker 4: the moment is the affordability of housing. Economically speaking, this

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Speaker 4: adds to demand pressure on demand. It does not address supply,

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Speaker 4: and that is the real reform we need. It's more

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Speaker 4: difficult and still undone. So I think adding this fuel

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Speaker 4: onto it is problematic anyway, and without any solution on

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Speaker 4: supply is even more so. So this one wins for

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Speaker 4: a remarkable story of the week.

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Speaker 1: Good decision. There we go one. All, let's take a

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Speaker 1: very quick break and come back with our mystery story

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Speaker 1: of the week. Natalie. We have a mystery category now.

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Speaker 1: It is one all of course, and so the competition

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Speaker 1: is incredibly tight. We change our mystery category every week

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Speaker 1: in order to keep Adam guessing. He doesn't know what

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Speaker 1: we have chosen. Today, we've selected stories relating to working

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Speaker 1: from home. Okay, all right, okay, would you like to

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Speaker 1: go first?

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Speaker 2: I would?

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Speaker 4: You?

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Speaker 2: Said that so nervously?

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Speaker 1: Well, I didn't know whether you would want to happy?

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Speaker 2: Too happy?

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Speaker 1: Trying to be a gentleman here, opening with.

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Speaker 2: A disclaimer so much as last week, I had to

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Speaker 2: add the conditional that I do not endorse crime.

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Speaker 1: Which was important, which was which was very important to

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Speaker 1: the story.

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Speaker 2: Go back and listen to last week's weekend edition if

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Speaker 2: you're unsure what we're talking about. This week's disclaimer. I

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Speaker 2: love Melbourne. I love Melbourne. I love Victoria, but there

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Speaker 2: is a bad Victoria's business climate has become a major

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Speaker 2: theme of reporting season. Leaders are blaming entrenched work from

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Speaker 2: home culture and rising crime for some of the major

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Speaker 2: fat challenges that they're facing, possibly using its escapegoat, but

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Speaker 2: stick with me. We saw the CSL chair seeing that

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Speaker 2: Melbourne's work from home habits have contributed to research failures

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Speaker 2: the biotechs cutting three thousand jobs globally, but Melbourne is

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Speaker 2: still a key hub for it. He joins what has

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Speaker 2: become really a raft of other executives, including Rehe's Peter Wilson,

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Speaker 2: who in a super Vulnerable Analyst call admitted that all

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Speaker 2: options are going to be on the table if they

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Speaker 2: can't get workers back to the office, along with investor

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Speaker 2: John Wiley, who gave a warning that Premier sentto Allan's

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Speaker 2: plan to legislate a right to work from home could

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Speaker 2: actually deter investment. But we're doing this as a little

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Speaker 2: bit of a doubleheader. It isn't just office culture in

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Speaker 2: Victoria that's being critiqued, as retailers battle escalating crime in

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Speaker 2: the state. Also, Wilhilson colls they've had to armstaff with

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Speaker 2: body cameras and do de escalation training after hundreds of

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Speaker 2: violent incidents and dozens of store lockdowns, while super retailers

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Speaker 2: Anthony Herity has said that theft at Rebel Sports stores

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Speaker 2: is out of control. And also I just want to

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Speaker 2: make points that when we are talking about the workspace,

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Speaker 2: we're talking about work from home, but actually a lot

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Speaker 2: of retail workers they don't have that opportunity, so it's

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Speaker 2: all something that needs to be kind of put into

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Speaker 2: one basket as well. When it comes to a government response.

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Speaker 2: There are tougher bail laws, there are machete bands of

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Speaker 2: all things, and increase police powers. But business leaders are

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Speaker 2: arguing that more needs to be done to restore confidence

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Speaker 2: in the state because the last thing that you want

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Speaker 2: is for this to be becoming a somewhat of a

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Speaker 2: fulfilled prophecy and businesses, both domestic and international shifting away from.

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Speaker 1: Victoria and even just on the work from home side

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Speaker 1: of that. Through the week, we saw the federal Green

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Speaker 1: wanting to make it a national policy to actually have

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Speaker 1: national legislation over working from home, and obviously that's been

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Speaker 1: kind of shut down. But it shows that if Victoria

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Speaker 1: the government succeeds in getting this through, it could well

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Speaker 1: set a precedent for other states and then we have

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Speaker 1: similar problems and similar challenges for businesses. It is a

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Speaker 1: great story that one it is an omnibus story. You

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Speaker 1: combined multiple so you are disqualified.

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Speaker 2: But that's such a reach, and you know it, I

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Speaker 2: know it.

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Speaker 1: Was, but I'm just planting the seed in Adam's mind

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Speaker 1: and maybe now it's just given you a couple of

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Speaker 1: demerit points Adam, one of Australia's biggest compliance training companies,

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Speaker 1: is under police investigation after allegedly turning staff laptops into

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Speaker 1: covert listening devices while they were working from home. It

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Speaker 1: is alleged that SafeTrack, we've actually spoken to on fear

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Speaker 1: and greed in the past, not about this particular topic,

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Speaker 1: obviously used software to secretly record screens and audio from microphones,

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Speaker 1: sometimes for up to ten hours a day, and that

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Speaker 1: meant not just meetings, but private conversations that were taking

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Speaker 1: place at the computer or right nearby the computer. They

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Speaker 1: could also be captured. SafeTrack says employees consent in contracts.

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Speaker 1: Staff dispute that, and two who complained were later no

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Speaker 1: longer employed by the company. Victoria Police is investigating possible

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Speaker 1: breaches of surveillance laws. There's a lot in this. There's

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Speaker 1: the legal side of it, but the big issue here,

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Speaker 1: I think, as well as the fact that five years

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Speaker 1: after work from home became a big, big, big thing, right.

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Speaker 1: It was already part of office or work culture before

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Speaker 1: the pandemic, but it became part of our everyday lives.

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Speaker 1: But five years after that point, we still haven't figured

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Speaker 1: this stuff out yet. We still haven't quite got the

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Speaker 1: balance right between of trust and productivity. Trust from the

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Speaker 1: business that the employees are doing the right thing at home,

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Speaker 1: and the just measuring things based on your output, the

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Speaker 1: productive output of somebody's job, rather than expecting them to

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Speaker 1: be sitting at that computer every single minute, needing to

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Speaker 1: record them to actually make sure that they are having

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Speaker 1: work related conversations while they are sitting there. Unions say

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Speaker 1: we need more privacy protections. Business, as you pointed out, Natalie,

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Speaker 1: say that we need more people in the office. They

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Speaker 1: want productivity, they want accountability. There's a right way to

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Speaker 1: do this, there is a wrong way to do it,

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Speaker 1: and I suspect the SafeTrack one allegedly could be closer

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Speaker 1: to the wrong way to do this. I just find

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Speaker 1: this whole thing completely remarkable, but it probably points to

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Speaker 1: a few bigger challenges that we have with work from

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Speaker 1: home culture moving forward.

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Speaker 2: Michael quick te any question on this, which state police

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Speaker 2: did you say was investigating the possible breaches of surveillance laws.

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Speaker 1: I think that's an irrelevant detail, Natalie.

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Speaker 2: I don't think I believe I believe the detail is

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Speaker 2: Victoria Police. Yes, so I'm I'm in addition to my

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Speaker 2: TheBus story, I'm actually also just going to adopt yours

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Speaker 2: as well.

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Speaker 1: I object. I could not object more strongly to this, Adam.

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Speaker 4: Thank you both noted and Okay, So Natalie wins this one.

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Speaker 4: The reason is the economic impact of an entire date,

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Speaker 4: which is such a fundamental economic driver for our whole

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Speaker 4: country Victoria, and it's been really i think low on

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Speaker 4: the performance rankings for some time, probably a decade now.

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Speaker 4: There is a lot of state debt, there are different

399
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Speaker 4: conditions being imposed. We saw them take an extreme reaction

400
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Speaker 4: under COVID, and I think they're still crawling out of that.

401
00:22:20,800 --> 00:22:24,399
Speaker 4: Victoria is an awesome state. Melbourne's a wonderful global city,

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Speaker 4: but I think it's being held back by a lot

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Speaker 4: of these things that Natalie you spoke about now, Michael,

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Speaker 4: the SafeTrack story specifically is absolutely incredible. It's gobsmacking what

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Speaker 4: they've done, and seemingly it's why wouldn't.

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Speaker 3: They just fesce up? Well, we got that really wrong.

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Speaker 3: What we haven't heard is that yet. It's like, come on,

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Speaker 3: that's just.

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Speaker 4: A fault so I think in terms of the breadth

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Speaker 4: of the economy impact, the Victorian story of Natalie's has.

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Speaker 1: To win two to one. So far, points are close

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Speaker 1: coming back, But Natalie, you may go first for the

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Speaker 1: favorite story of you. Sure, please do it? Okay?

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Speaker 3: Uh?

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Speaker 2: Are you ready for it?

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Speaker 1: Oh God, I know what you've just I know what

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Speaker 1: you've just done.

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Speaker 2: You know where this is going. Taylor Swift's engagement. It

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Speaker 2: is more than just a love story.

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Speaker 3: O God.

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Speaker 1: Another one? Do I need to count the song titles

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00:23:25,359 --> 00:23:27,600
Speaker 1: and puns and references here? So we're up to two

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Speaker 1: so far, and you've only just started.

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Speaker 3: Go on.

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Speaker 2: The singer is a She's a billion dollar brand who's

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Speaker 2: every life chapter becomes the one to watch in business.

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Speaker 2: Don't worry. I'll offer emphasis as well on each one,

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Speaker 2: just so you know.

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Speaker 3: Just open really cool guidance.

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Speaker 2: Three luxury houses are already eyeing a blank space for

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Speaker 2: tians on rings fashion lifestyle. Will retailers prepare for all

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Speaker 2: too well sales spikes on themed merchant SiZ I mean,

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Speaker 2: it's it's their wildest dreams come true. Six streaming platforms, publishers,

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Speaker 2: they can all expect red hot traffic. The Instagram again

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00:24:09,800 --> 00:24:13,040
Speaker 2: engagement announcement pulled in close to ten million likes within

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Speaker 2: the first hour, and that's without even considering the record

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00:24:16,920 --> 00:24:20,240
Speaker 2: setting reach of that New Heights podcast between Taylor Swift

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Speaker 2: and her now betrothed partner Travis Kelcey. For business leaders,

439
00:24:24,080 --> 00:24:29,119
Speaker 2: media marketers, it's a reminder that influence sells. Swift's reputation

440
00:24:29,680 --> 00:24:33,680
Speaker 2: has the power to turn cultural capital into commercial impact

441
00:24:34,000 --> 00:24:38,080
Speaker 2: with style, and this has been already obvious through the

442
00:24:38,119 --> 00:24:41,159
Speaker 2: mimicary effect on socials campaigns, the selling out of the

443
00:24:41,200 --> 00:24:43,200
Speaker 2: Ralph law and dress that were worn in the it's

444
00:24:43,240 --> 00:24:47,160
Speaker 2: announcement images. In short, gentlemen, her engagement is no cruel

445
00:24:47,200 --> 00:24:54,600
Speaker 2: summer for markets, but that one I know, but a

446
00:24:54,840 --> 00:25:00,840
Speaker 2: fearless lesson in how to make brand storytelling ever more gentlemen,

447
00:25:00,960 --> 00:25:02,399
Speaker 2: this is this is really simple.

448
00:25:03,400 --> 00:25:08,200
Speaker 4: Just say yes, you know what, Bakers, doesn't.

449
00:25:08,040 --> 00:25:12,280
Speaker 1: You know what? We almost need to get rid of

450
00:25:12,320 --> 00:25:16,000
Speaker 1: Adam here and bring in It's a coup. Chief economist

451
00:25:16,040 --> 00:25:19,520
Speaker 1: at a MP, doctor Shane Oliver, who is a huge

452
00:25:19,560 --> 00:25:22,760
Speaker 1: Taylor Swift fan, and he would have loved every one

453
00:25:22,800 --> 00:25:27,040
Speaker 1: of those references and would have noticed them. I absolutely

454
00:25:27,080 --> 00:25:27,440
Speaker 1: well and.

455
00:25:27,440 --> 00:25:31,640
Speaker 2: Actually shout out to the the a MP team over

456
00:25:31,640 --> 00:25:34,440
Speaker 2: that because they did. They jumped straight onto this. They

457
00:25:34,440 --> 00:25:39,600
Speaker 2: had a video on diamond on diamond prices and engagement rings.

458
00:25:40,240 --> 00:25:42,280
Speaker 2: They were they were all over it. And it's just

459
00:25:42,320 --> 00:25:46,160
Speaker 2: one example of how actually it did create this huge

460
00:25:46,200 --> 00:25:49,080
Speaker 2: lens that people just hopped onto and co opted.

461
00:25:49,920 --> 00:25:52,240
Speaker 1: So, I mean, look, Taylor Swift is obviously one of

462
00:25:52,240 --> 00:25:56,520
Speaker 1: the world's top performers. You know what another top performer

463
00:25:56,640 --> 00:25:58,120
Speaker 1: is in video.

464
00:26:00,440 --> 00:26:04,760
Speaker 2: Seamless, But where are the puns, Michael, where are the

465
00:26:04,840 --> 00:26:05,760
Speaker 2: puns the funds?

466
00:26:05,800 --> 00:26:08,480
Speaker 1: There are no puns here. This is serious business.

467
00:26:08,080 --> 00:26:09,680
Speaker 2: Here, quick get your chips in.

468
00:26:11,400 --> 00:26:16,000
Speaker 1: The world's biggest company, Adam and Video, delivered another bumper

469
00:26:16,160 --> 00:26:19,280
Speaker 1: result that tells us that the AI boom is still

470
00:26:19,359 --> 00:26:26,080
Speaker 1: in fact booming. It's smashed expectations once again, posting quarterly

471
00:26:26,080 --> 00:26:29,119
Speaker 1: revenue of forty six point seven billion US dollars are

472
00:26:29,160 --> 00:26:33,479
Speaker 1: whopping twenty five point eight billion US dollars in profit

473
00:26:33,760 --> 00:26:38,159
Speaker 1: that is for one quarter, right, that is just extraordinary.

474
00:26:38,480 --> 00:26:41,400
Speaker 1: It is ahead of forecasts. I read a line though

475
00:26:41,400 --> 00:26:44,399
Speaker 1: out of the US some analysis that kind of sums

476
00:26:44,400 --> 00:26:46,760
Speaker 1: it up well though, I said, the more in video

477
00:26:46,840 --> 00:26:50,800
Speaker 1: beats wall streets expectations, the harder it seems to satisfy

478
00:26:50,840 --> 00:26:53,560
Speaker 1: them because the results have become a litmus test for

479
00:26:53,600 --> 00:26:56,720
Speaker 1: the AI boom, and a jump in sales you would

480
00:26:56,760 --> 00:27:01,040
Speaker 1: think of more than fifty percent should have been enough,

481
00:27:01,480 --> 00:27:05,679
Speaker 1: but it wasn't. Investors sold off the stock initially just

482
00:27:05,720 --> 00:27:10,400
Speaker 1: because even just exceeding expectations now for Nvidia is not enough.

483
00:27:10,440 --> 00:27:12,919
Speaker 1: You need to kind of double exceed or triple exceed.

484
00:27:13,320 --> 00:27:15,840
Speaker 1: Something else to consider though about in Video, and I

485
00:27:15,880 --> 00:27:18,920
Speaker 1: think this is really really important and interesting when you

486
00:27:19,000 --> 00:27:21,639
Speaker 1: think about the scale of this company and the amount

487
00:27:21,720 --> 00:27:24,880
Speaker 1: of money it is making. Forty percent of its revenue

488
00:27:24,920 --> 00:27:31,680
Speaker 1: though comes from just five companies, Microsoft, Meta, Amazon, Alphabet,

489
00:27:32,080 --> 00:27:34,640
Speaker 1: and Tesla. Isn't that extraordinary? And we saw a couple

490
00:27:34,640 --> 00:27:36,480
Speaker 1: of weeks ago obviously, particularly with I think it was

491
00:27:36,480 --> 00:27:40,560
Speaker 1: Meta and Microsoft, the revenue that they were generating, the

492
00:27:40,560 --> 00:27:44,440
Speaker 1: fact that they are now starting to monetize their investments,

493
00:27:44,480 --> 00:27:48,360
Speaker 1: their massive investments in AI. And so as long as

494
00:27:48,400 --> 00:27:51,000
Speaker 1: that continues, and as long as those other companies can

495
00:27:51,040 --> 00:27:53,399
Speaker 1: start to make money out of the huge sums that

496
00:27:53,400 --> 00:27:56,080
Speaker 1: they are spending on and video chips and on broader

497
00:27:56,200 --> 00:27:59,080
Speaker 1: kind of investments in the AI platforms, then in Video

498
00:27:59,160 --> 00:28:02,520
Speaker 1: will keep booming. An AI itself will continue to boom,

499
00:28:02,520 --> 00:28:04,880
Speaker 1: but it does all feel a little bit precarious, right,

500
00:28:04,920 --> 00:28:08,320
Speaker 1: and the expectations are just so so high for this company.

501
00:28:08,320 --> 00:28:12,720
Speaker 1: And I'm sorry that was very dull, very straight to compet.

502
00:28:12,840 --> 00:28:15,159
Speaker 1: Oh no, I don't believe. So I just feel just

503
00:28:15,440 --> 00:28:18,399
Speaker 1: look across it at Natalie's hopeful face waiting for an

504
00:28:18,520 --> 00:28:22,680
Speaker 1: Nvidia chip pun or something, and unfortunately, on this particular occasion,

505
00:28:23,119 --> 00:28:24,800
Speaker 1: you are not going to get it.

506
00:28:24,960 --> 00:28:27,520
Speaker 2: Michael, It's okay, do you know what the heater is?

507
00:28:27,520 --> 00:28:31,680
Speaker 2: Are gonna hate, hate, hate, but I would just encourage

508
00:28:31,720 --> 00:28:35,200
Speaker 2: you to just just shake it off, my friend, shake it.

509
00:28:35,160 --> 00:28:38,520
Speaker 1: Off, Adam, Please put us all out of our misery.

510
00:28:38,680 --> 00:28:46,200
Speaker 4: So look, Taylor Swift and Travis Kelcey really fascinating, but

511
00:28:46,400 --> 00:28:50,640
Speaker 4: not as big as business impact as in video. It

512
00:28:50,760 --> 00:28:55,520
Speaker 4: is a multi multi billion dollar quarter alone. The profits

513
00:28:55,560 --> 00:29:00,680
Speaker 4: are eye watering, the numbers are completely staggering. So I

514
00:29:00,720 --> 00:29:03,560
Speaker 4: know this may shock everybody that I'm picking a business

515
00:29:03,600 --> 00:29:08,000
Speaker 4: story over Tayte and Travis's engagement, and good luck to them,

516
00:29:08,080 --> 00:29:12,000
Speaker 4: well done, but in video wins well, I'm Michael.

517
00:29:11,880 --> 00:29:13,480
Speaker 1: Thank you, Adam.

518
00:29:13,600 --> 00:29:15,880
Speaker 3: I just had to just two stories a piece.

519
00:29:15,760 --> 00:29:18,240
Speaker 1: Go in there and just the chips fall where they may.

520
00:29:18,760 --> 00:29:19,720
Speaker 1: That's the market Chips.

521
00:29:19,800 --> 00:29:24,080
Speaker 2: That's fine, I like, I understand. I mean, did Taylor

522
00:29:24,120 --> 00:29:28,160
Speaker 2: Swift offer an estimated ten billion dollars economic impact in

523
00:29:28,200 --> 00:29:33,760
Speaker 2: the US alone? Yeah? But like sure, sure chips, chips.

524
00:29:33,480 --> 00:29:35,640
Speaker 3: I get like, I get it, and even bigger profits

525
00:29:35,840 --> 00:29:36,760
Speaker 3: from chips.

526
00:29:36,720 --> 00:29:37,880
Speaker 2: I get it.

527
00:29:37,920 --> 00:29:40,560
Speaker 1: To all. What was the score breakdown? Adam?

528
00:29:40,720 --> 00:29:41,280
Speaker 3: Okay?

529
00:29:41,640 --> 00:29:46,800
Speaker 4: Michael eighty eight points, Natalie eighty eight points.

530
00:29:47,360 --> 00:29:51,120
Speaker 3: We need a tiebreaker of some kind or maybe we don't.

531
00:29:51,160 --> 00:29:53,600
Speaker 2: Maybe next week, Yeah, let's do it on how many

532
00:29:53,600 --> 00:29:57,040
Speaker 2: puns did Michael fell to her stories? Well, like Natalie wins.

533
00:29:57,160 --> 00:29:59,280
Speaker 1: Ah, you know what, I'm happy to call this a

534
00:29:59,360 --> 00:30:03,880
Speaker 1: tie and that means then next week it is double

535
00:30:03,960 --> 00:30:08,440
Speaker 1: or nothing, double or nothing. Next week, let's do it

536
00:30:08,760 --> 00:30:13,400
Speaker 1: because after that Sean Alena is back, So technically next

537
00:30:13,400 --> 00:30:17,320
Speaker 1: weekend will be your final weekend edition for a little while. Yeah,

538
00:30:17,400 --> 00:30:20,520
Speaker 1: so it is double or nothing, no pressure.

539
00:30:20,320 --> 00:30:23,280
Speaker 2: Okay, can we I feel can we bring in like

540
00:30:23,320 --> 00:30:26,520
Speaker 2: an additional like external adjudication, maybe one that gets like

541
00:30:26,800 --> 00:30:29,760
Speaker 2: my Taylor Swift which chang's the judge.

542
00:30:30,000 --> 00:30:33,960
Speaker 1: No, because if you can't use a music category in

543
00:30:34,000 --> 00:30:37,479
Speaker 1: the way and win and win with Adam's subjective bias,

544
00:30:37,600 --> 00:30:41,600
Speaker 1: then I'm not going to give you any any leeway

545
00:30:41,640 --> 00:30:42,720
Speaker 1: on that honorable draw.

546
00:30:43,000 --> 00:30:45,160
Speaker 3: You both will play good game, good work.

547
00:30:45,240 --> 00:30:47,800
Speaker 1: Thank you very much, Adam, Thank you, Michael, thank you, Natalie,

548
00:30:47,880 --> 00:30:50,800
Speaker 1: thank you. Remember head on to Fearangreed dot com dot

549
00:30:50,800 --> 00:30:53,360
Speaker 1: au sign up for our free daily newsletter. I'll put

550
00:30:53,400 --> 00:30:55,880
Speaker 1: a link in today's show notes as well, and make

551
00:30:55,880 --> 00:30:58,040
Speaker 1: sure you're following the podcast. I'm Michael Thompson and that

552
00:30:58,120 --> 00:30:59,840
Speaker 1: was Fear and Greed. Have a great weekend.