1 00:00:03,960 --> 00:00:07,530 Michael Thompson: Sydney and Melbourne leader bounced back in house prices after another 2 00:00:07,530 --> 00:00:11,459 Michael Thompson: strong weekend for auctions. The trade minister says Beijing is 3 00:00:11,460 --> 00:00:15,570 Michael Thompson: only weeks away from allowing Bali exports. And the US 4 00:00:15,570 --> 00:00:19,860 Michael Thompson: debt ceiling crisis is over, hopefully, providing relief for equity 5 00:00:19,860 --> 00:00:24,238 Michael Thompson: markets. It's Monday the 29th of May, 2023. Welcome to 6 00:00:24,239 --> 00:00:28,260 Michael Thompson: Fear & Greed, Australia's most popular business podcast. I'm Michael Thompson 7 00:00:28,320 --> 00:00:29,880 Michael Thompson: and good morning, Sean Aylmer. 8 00:00:30,240 --> 00:00:31,410 Sean Aylmer: Good morning, Michael. 9 00:00:31,830 --> 00:00:34,498 Michael Thompson: Sean, after the show, your interview today is with Daniel 10 00:00:34,500 --> 00:00:37,980 Michael Thompson: Shrimski, the managing director of Vanguard Australia. 11 00:00:38,820 --> 00:00:42,510 Sean Aylmer: Yes, so it's all about what's happening in the superannuation 12 00:00:42,510 --> 00:00:46,049 Sean Aylmer: world and the people who end up not just financially 13 00:00:46,050 --> 00:00:49,348 Sean Aylmer: better off, but mentally better off in terms of saving 14 00:00:49,348 --> 00:00:52,019 Sean Aylmer: for retirement. And guess what? They're the ones that use 15 00:00:52,019 --> 00:00:55,650 Sean Aylmer: financial planners. Clearly, that's something very close to our hearts. 16 00:00:55,650 --> 00:00:57,900 Sean Aylmer: We talk about that all the time. It's a great 17 00:00:58,140 --> 00:01:01,080 Sean Aylmer: opportunity to talk to Daniel who runs, I mean the 18 00:01:01,080 --> 00:01:04,800 Sean Aylmer: Australian arm of a massive fund manager. And we talk 19 00:01:04,800 --> 00:01:07,800 Sean Aylmer: about all sorts of things around planners, superannuation. Great chat. 20 00:01:08,069 --> 00:01:10,049 Michael Thompson: Yeah, it's a really good one. It's coming up later 21 00:01:10,049 --> 00:01:12,720 Michael Thompson: on. Definitely worth a list this morning. The main story 22 00:01:12,720 --> 00:01:15,630 Michael Thompson: though, Sean, Sydney and Melbourne are leading a bounce back 23 00:01:15,630 --> 00:01:18,869 Michael Thompson: in house prices with first home buyers and investors back 24 00:01:18,870 --> 00:01:19,560 Michael Thompson: in the market. 25 00:01:20,039 --> 00:01:21,869 Sean Aylmer: Figures this week are expected to show that in the 26 00:01:21,870 --> 00:01:25,260 Sean Aylmer: two largest capital cities, prices are up close to 1% for 27 00:01:25,980 --> 00:01:29,789 Sean Aylmer: the month of May and could rise by 10% this calendar 28 00:01:29,789 --> 00:01:33,928 Sean Aylmer: year. A result even the most optimistic of forecasters weren't 29 00:01:33,930 --> 00:01:36,720 Sean Aylmer: talking about just a few months ago. It isn't quite 30 00:01:36,720 --> 00:01:39,059 Sean Aylmer: a lay down majeure. There could still be more misery 31 00:01:39,090 --> 00:01:41,940 Sean Aylmer: for homeowners if the Reserve Bank lists interest rates next 32 00:01:41,940 --> 00:01:45,539 Sean Aylmer: week, but certainly, momentum has shifted, especially in Sydney and 33 00:01:45,539 --> 00:01:49,140 Sean Aylmer: Melbourne. Longtime market watcher, Shane Oliver from AMP says prices 34 00:01:49,140 --> 00:01:52,320 Sean Aylmer: could rise 10% or more this year in Sydney, particularly, 35 00:01:52,590 --> 00:01:56,460 Sean Aylmer: helped by low stock and strong migration. He says there's 36 00:01:56,460 --> 00:01:58,740 Sean Aylmer: also a bit of FOMO out there in the market 37 00:01:58,770 --> 00:02:00,359 Sean Aylmer: at the moment. And we seem to have seen that over 38 00:02:00,630 --> 00:02:04,979 Sean Aylmer: the weekend. People see that the market may have bottomed 39 00:02:04,980 --> 00:02:07,980 Sean Aylmer: or plateaued, therefore they want to jump in. 40 00:02:09,060 --> 00:02:11,460 Michael Thompson: Sean, the auction results over the weekend, do they back 41 00:02:11,460 --> 00:02:13,380 Michael Thompson: the idea that the market has turned? Because a week 42 00:02:13,380 --> 00:02:16,530 Michael Thompson: ago the preliminary clearance rate was very high. 43 00:02:17,130 --> 00:02:20,490 Sean Aylmer: Was, and this week it was even higher. It hit 75. 44 00:02:20,490 --> 00:02:25,200 Sean Aylmer: 9%. That's the highest since November 2021 according to CoreLogic. 45 00:02:25,800 --> 00:02:30,360 Sean Aylmer: Sydney came in at 78. 5%, Melbourne at 77. 1%. 46 00:02:30,360 --> 00:02:33,389 Sean Aylmer: Among the smaller capitals, auction volumes rose in Brisbane and 47 00:02:33,389 --> 00:02:37,380 Sean Aylmer: Adelaide. Adelaide recorded the highest clearance rate of 81. 8%, 48 00:02:37,380 --> 00:02:41,639 Sean Aylmer: followed by Canberra on 67.8% and Brisbane, just a bit 49 00:02:41,639 --> 00:02:42,750 Sean Aylmer: above 60%. 50 00:02:43,380 --> 00:02:45,750 Michael Thompson: And what about first home buyers? They're back it seems. 51 00:02:46,320 --> 00:02:48,090 Sean Aylmer: Look, it looks that way. I mean, the most recent 52 00:02:48,090 --> 00:02:51,000 Sean Aylmer: Bureau of Statistics figures, which is March data, shows they 53 00:02:51,000 --> 00:02:54,750 Sean Aylmer: rose nearly 16% during that month having fallen 4% in 54 00:02:54,750 --> 00:02:57,120 Sean Aylmer: February. Still a long way from where they were in 55 00:02:57,120 --> 00:03:01,350 Sean Aylmer: January 2021. They're about 50% below that. But certainly, they're 56 00:03:01,350 --> 00:03:04,500 Sean Aylmer: back in the market and that is good news. It 57 00:03:04,500 --> 00:03:07,020 Sean Aylmer: just, later this week, we'll get the official figures from 58 00:03:07,020 --> 00:03:10,530 Sean Aylmer: CoreLogic about how the market performed for the month of 59 00:03:10,530 --> 00:03:13,590 Sean Aylmer: May. Everyone seems to think that it'll be Sydney certainly 60 00:03:13,590 --> 00:03:17,189 Sean Aylmer: be up by more than 1%. Melbourne around about that 61 00:03:17,250 --> 00:03:21,328 Sean Aylmer: amount. The market momentum is very much positive. 62 00:03:21,600 --> 00:03:24,779 Michael Thompson: Yeah, certainly seems that way, Sean. And we actually had 63 00:03:24,840 --> 00:03:26,790 Michael Thompson: a note from a listener over the last couple of 64 00:03:26,790 --> 00:03:30,148 Michael Thompson: days, Raphael, who got in contact with us, with obviously 65 00:03:30,150 --> 00:03:32,489 Michael Thompson: a very interesting take on the whole thing. And he 66 00:03:32,490 --> 00:03:36,000 Michael Thompson: said that that sure, while the rising house prices are 67 00:03:36,240 --> 00:03:39,450 Michael Thompson: a terrific outcome for property owners and for investors, there's 68 00:03:39,450 --> 00:03:42,330 Michael Thompson: obviously the other side of the equation, which is this, 69 00:03:42,330 --> 00:03:45,629 Michael Thompson: the rental crisis. And for anyone who doesn't actually own 70 00:03:45,630 --> 00:03:48,420 Michael Thompson: their property, this is not necessarily such good news. 71 00:03:48,809 --> 00:03:50,969 Sean Aylmer: Yeah, absolutely. I mean, he's right. If you're trying to 72 00:03:50,969 --> 00:03:53,129 Sean Aylmer: get into the market, it is very, very difficult when 73 00:03:53,129 --> 00:03:57,180 Sean Aylmer: house prices are rising. And the rental crisis now is 74 00:03:57,180 --> 00:04:01,410 Sean Aylmer: as bad as any time I've can remember. It's not 75 00:04:01,410 --> 00:04:03,569 Sean Aylmer: all good news when house price rises. That's the point 76 00:04:03,570 --> 00:04:04,710 Sean Aylmer: and that's a very fair point. 77 00:04:05,340 --> 00:04:08,370 Michael Thompson: Now, local share market, Sean, how did they finish up 78 00:04:08,370 --> 00:04:09,149 Michael Thompson: on Friday? 79 00:04:09,599 --> 00:04:16,500 Sean Aylmer: The S&P/ASX 200 finished up 0.2% to 7, 155 points. Could have been much 80 00:04:16,500 --> 00:04:18,720 Sean Aylmer: worse, but for the rally in tech stocks. Why is 81 00:04:18,720 --> 00:04:22,289 Sean Aylmer: Tech Global jumped another 1. 7%? That means it's up about 82 00:04:22,559 --> 00:04:27,628 Sean Aylmer: 115% from its low last June. Next DC, the tech 83 00:04:27,630 --> 00:04:31,860 Sean Aylmer: infrastructure group jumped nearly 4%. Artificial intelligence group, Brainchip Holdings 84 00:04:31,860 --> 00:04:35,279 Sean Aylmer: and tech networking company, Megaport, they were the best on 85 00:04:35,279 --> 00:04:37,680 Sean Aylmer: the day. Among the top 200 at least, both rising 5. 86 00:04:38,070 --> 00:04:42,690 Sean Aylmer: 6%. Outside the tech sector, not so good, really. The 87 00:04:42,690 --> 00:04:45,839 Sean Aylmer: fall for last week, in fact was 1. 7%. On 88 00:04:45,839 --> 00:04:49,050 Sean Aylmer: Friday, the banks mostly ended in positive territory. The big 89 00:04:49,080 --> 00:04:52,001 Sean Aylmer: miners outperformed as the price of iron ore rose. (inaudible) 90 00:04:52,001 --> 00:04:54,870 Sean Aylmer: metals closed up more than 3%. Rare was 2.2% 91 00:04:55,589 --> 00:04:59,549 Sean Aylmer: higher. BHP closed at almost one and 5% better. Worse than the 92 00:04:59,550 --> 00:05:03,630 Sean Aylmer: day was Fisher & Paykel Healthcare, which fell 5% after it 93 00:05:03,630 --> 00:05:06,600 Sean Aylmer: outlined a 34% drop in net profit for the full 94 00:05:06,600 --> 00:05:07,830 Sean Aylmer: year to the end of March. 95 00:05:08,250 --> 00:05:11,130 Michael Thompson: Now, Sean, it's we're in the middle of the Memorial 96 00:05:11,130 --> 00:05:14,010 Michael Thompson: Day long weekend in the US so you'd be forgiven 97 00:05:14,010 --> 00:05:16,019 Michael Thompson: for thinking that it'd be a bit of a quieter 98 00:05:16,020 --> 00:05:18,509 Michael Thompson: time in the US. Uh- huh, that's not the case. 99 00:05:18,509 --> 00:05:21,389 Michael Thompson: We've got negotiators on both sides of politics. The Republicans 100 00:05:21,389 --> 00:05:25,290 Michael Thompson: and Democrats have agreed to raise the US debt ceiling, 101 00:05:25,290 --> 00:05:29,190 Michael Thompson: removing one of the key uncertainties that are affecting financial markets. 102 00:05:29,490 --> 00:05:32,370 Sean Aylmer: Yes, and that uncertainty has been a key reason for 103 00:05:32,370 --> 00:05:36,570 Sean Aylmer: equity markets, including the ASX falling. President Joe Biden and 104 00:05:36,570 --> 00:05:39,870 Sean Aylmer: speaker, Kevin McCarthy, over the weekend reached an agreement in 105 00:05:39,870 --> 00:05:43,140 Sean Aylmer: principle to lift the debt limit for two years while 106 00:05:43,140 --> 00:05:46,710 Sean Aylmer: cutting and capping some government spending. Congressional passage of the 107 00:05:46,710 --> 00:05:50,459 Sean Aylmer: plan before June 5, when the treasuries is projected to 108 00:05:50,460 --> 00:05:54,089 Sean Aylmer: exhaust its ability to pay its obligations is not assured, 109 00:05:54,089 --> 00:05:57,419 Sean Aylmer: particularly in the house where Republicans hold a narrow majority 110 00:05:57,420 --> 00:06:00,180 Sean Aylmer: in the chamber. But the fact that Biden and McCarthy 111 00:06:00,180 --> 00:06:03,960 Sean Aylmer: have agreed, certainly will help. Michael, do you have any 112 00:06:03,960 --> 00:06:06,210 Sean Aylmer: idea what the debt ceiling is? I didn't, so I 113 00:06:06,210 --> 00:06:07,020 Sean Aylmer: went and looked it up. 114 00:06:08,040 --> 00:06:10,890 Michael Thompson: No, but I know it's going to be a phenomenal number. 115 00:06:11,520 --> 00:06:17,549 Sean Aylmer: 31.4 trillion US dollars. That's not far off 50 trillion Aussie. 116 00:06:21,059 --> 00:06:24,510 Michael Thompson: I'm sorry. 31. 4 trillion US? 117 00:06:24,570 --> 00:06:29,520 Sean Aylmer: Trillion US dollars. And obviously the debt, that's the ceiling 118 00:06:29,520 --> 00:06:32,909 Sean Aylmer: and they want to expand the ceiling. Clearly, they're at 119 00:06:32,910 --> 00:06:34,860 Sean Aylmer: that level and about to push beyond it. 120 00:06:35,459 --> 00:06:37,680 Michael Thompson: That is just a phenomenal number. 121 00:06:37,860 --> 00:06:41,640 Sean Aylmer: Totally, 31. 4. Anyway, the deal's done. That should help 122 00:06:41,640 --> 00:06:42,510 Sean Aylmer: equity markets. 123 00:06:42,779 --> 00:06:45,089 Michael Thompson: All right. There is plenty happening. We'll be back in 124 00:06:45,089 --> 00:06:47,219 Michael Thompson: a moment with the rest of the day's business news. 125 00:06:53,160 --> 00:06:56,969 Michael Thompson: Sean, trade minister, Don Farrell, expects China will remove its 126 00:06:57,000 --> 00:07:00,930 Michael Thompson: 80% tariffs on Australian Bali exports within the next few weeks. 127 00:07:01,110 --> 00:07:03,990 Sean Aylmer: His comments made in the US over the weekend come 128 00:07:03,990 --> 00:07:06,509 Sean Aylmer: after he met for a third time in two months 129 00:07:06,509 --> 00:07:09,929 Sean Aylmer: with his Chinese counterpart. He said progress on Bali is 130 00:07:09,929 --> 00:07:12,540 Sean Aylmer: being made, although the job isn't done yet. He told 131 00:07:12,540 --> 00:07:15,540 Sean Aylmer: Bloomberg that he expects China to remove the barley tariffs 132 00:07:15,540 --> 00:07:19,230 Sean Aylmer: after Beijing's review, if it's done properly. Now, China has 133 00:07:19,230 --> 00:07:23,040 Sean Aylmer: once again started importing coal. It's importing timber as well. 134 00:07:23,460 --> 00:07:26,099 Sean Aylmer: Barley seems to be next. Farrell was speaking in Detroit 135 00:07:26,099 --> 00:07:29,939 Sean Aylmer: after a meeting of the 11 country comprehensive and progressive Trans- 136 00:07:30,029 --> 00:07:34,170 Sean Aylmer: Pacific partnership. That's a grouping which Beijing wants to join 137 00:07:34,230 --> 00:07:38,400 Sean Aylmer: with Canberra's support. The UK is set to join the Trans- 138 00:07:38,400 --> 00:07:42,180 Sean Aylmer: Pac partnership shortly. Very sensitive area for the Albanese government 139 00:07:42,420 --> 00:07:45,959 Sean Aylmer: given how important China is to our trade relationship. But 140 00:07:45,960 --> 00:07:48,480 Sean Aylmer: of course, in terms of geopolitics, we are much closer 141 00:07:48,480 --> 00:07:51,060 Sean Aylmer: to the US. I must say. I did love the 142 00:07:51,060 --> 00:07:56,400 Sean Aylmer: way Senator Farrell described the tension between trade and geopolitics 143 00:07:56,550 --> 00:08:00,509 Sean Aylmer: and how Australia handles it. He put it simply, " We 144 00:08:00,509 --> 00:08:02,040 Sean Aylmer: can walk and chew gum." 145 00:08:02,520 --> 00:08:03,840 Michael Thompson: Oh, that is fantastic. 146 00:08:04,170 --> 00:08:04,859 Sean Aylmer: Very Aussie. 147 00:08:06,719 --> 00:08:10,440 Michael Thompson: I just love it when any politician just kind of 148 00:08:10,440 --> 00:08:15,179 Michael Thompson: ditches the political speak and just comes out with something 149 00:08:15,179 --> 00:08:15,539 Michael Thompson: like that. 150 00:08:15,990 --> 00:08:18,329 Sean Aylmer: And you got... Don Farrell, I don't know much about 151 00:08:18,330 --> 00:08:21,000 Sean Aylmer: him, but I'm liking him more and. Because remember that 152 00:08:21,000 --> 00:08:24,810 Sean Aylmer: first meeting with his Chinese counterpart? And he finished and 153 00:08:24,810 --> 00:08:26,220 Sean Aylmer: he goes, " Yeah, no, I've asked him down to my 154 00:08:26,220 --> 00:08:29,190 Sean Aylmer: vineyard." Down in Victoria, he's got a vineyard in Victoria. 155 00:08:29,190 --> 00:08:32,429 Sean Aylmer: And he said he'll come along. That's great. 156 00:08:33,030 --> 00:08:35,819 Michael Thompson: It's very, it feels like it's the kind of thing 157 00:08:35,820 --> 00:08:38,340 Michael Thompson: that you would see in local council. 158 00:08:38,340 --> 00:08:39,328 Sean Aylmer: Yeah. Yeah, yeah, yeah. 159 00:08:39,330 --> 00:08:41,609 Michael Thompson: Yet all of a sudden, it's happening on the global 160 00:08:41,609 --> 00:08:44,670 Michael Thompson: stage. Hey, maybe that's what we need. Maybe that's how 161 00:08:44,670 --> 00:08:45,420 Michael Thompson: we cut through. 162 00:08:45,660 --> 00:08:49,290 Sean Aylmer: The two obviously get on very well. The two trade 163 00:08:49,290 --> 00:08:51,988 Sean Aylmer: ministers, because they're meeting each other a lot. Yeah. I 164 00:08:51,990 --> 00:08:53,160 Sean Aylmer: think it's quite fun to watch. 165 00:08:53,429 --> 00:08:57,509 Michael Thompson: Yeah, indeed. And still in politics, Sean, independent Senator, Lidia 166 00:08:57,509 --> 00:08:59,940 Michael Thompson: Thorpe, says she will lodge a claim in the Australian 167 00:08:59,940 --> 00:09:03,929 Michael Thompson: Human Rights Commission against the greens over allegations she was 168 00:09:03,929 --> 00:09:06,240 Michael Thompson: subjected to racism in her former party. 169 00:09:06,720 --> 00:09:09,990 Sean Aylmer: It comes after Senator Thorpe accused Greens senator, Sarah Hanson- 170 00:09:09,990 --> 00:09:13,799 Sean Aylmer: Young, of racism during an exchange in Senator estimates last 171 00:09:13,799 --> 00:09:17,159 Sean Aylmer: week, it occurred while the Greens senator was questioning the 172 00:09:17,160 --> 00:09:21,240 Sean Aylmer: ABC's managing director, David Anderson, over the national broadcaster's handling 173 00:09:21,240 --> 00:09:24,390 Sean Aylmer: of Stan Grant's exit from Q& A. Of course, that 174 00:09:24,390 --> 00:09:28,230 Sean Aylmer: was over racist allegations as well. Senator Thorpe yesterday said 175 00:09:28,440 --> 00:09:31,830 Sean Aylmer: she has received legal advice that she has enough grounds 176 00:09:32,070 --> 00:09:34,799 Sean Aylmer: for a case against the Greens, but we'll leave it 177 00:09:34,799 --> 00:09:37,980 Sean Aylmer: for her lawyers to comment further. She suggested national bodies 178 00:09:37,980 --> 00:09:41,790 Sean Aylmer: like the ABC were founded on institutional racism and that 179 00:09:41,790 --> 00:09:44,910 Sean Aylmer: the nation needs to work harder to ensure racism is 180 00:09:44,910 --> 00:09:48,599 Sean Aylmer: stamped out in all workplaces. A Greens spokesperson yesterday said 181 00:09:48,599 --> 00:09:52,020 Sean Aylmer: the party was not aware of any legal proceedings against 182 00:09:52,020 --> 00:09:54,389 Sean Aylmer: any of its MPs or the party, for the time 183 00:09:54,420 --> 00:09:56,610 Sean Aylmer: being anyway. There's another part to this story. Now Senator 184 00:09:56,610 --> 00:09:59,850 Sean Aylmer: Thorpe defected from the Greens to sit as an independent 185 00:10:00,210 --> 00:10:03,450 Sean Aylmer: over concerns about the party's position on the proposed voice 186 00:10:03,630 --> 00:10:06,720 Sean Aylmer: to parliament. And of course, the Greens support the voice. 187 00:10:07,290 --> 00:10:10,500 Sean Aylmer: Yesterday, Thorpe said she may abstain from voting on the 188 00:10:10,500 --> 00:10:13,410 Sean Aylmer: government's proposed referendum machinery bill in the upper house next 189 00:10:13,439 --> 00:10:16,170 Sean Aylmer: month. Adding she's not part of the no camp. 190 00:10:17,190 --> 00:10:20,250 Michael Thompson: Sean, this is an interesting one. Regional job advertisements grew 191 00:10:20,250 --> 00:10:24,328 Michael Thompson: three times faster than in metropolitan Australia, with demand for 192 00:10:24,330 --> 00:10:28,650 Michael Thompson: doctors and nurses skyrocketing. It seems there's more jobs than 193 00:10:28,650 --> 00:10:30,449 Michael Thompson: there are people in the regions. 194 00:10:31,080 --> 00:10:33,179 Sean Aylmer: Good reason to move to the country, Michael. You're a 195 00:10:33,179 --> 00:10:33,840 Sean Aylmer: country boy. 196 00:10:34,020 --> 00:10:36,300 Michael Thompson: Oh, I would need very little reason to move. 197 00:10:36,450 --> 00:10:37,080 Sean Aylmer: Oh really? 198 00:10:37,200 --> 00:10:40,020 Michael Thompson: Yeah. Oh, absolutely. In a heartbeat. And the beauty of 199 00:10:40,020 --> 00:10:43,319 Michael Thompson: technology is that I could do this from anywhere basically. 200 00:10:43,860 --> 00:10:46,080 Sean Aylmer: Well, why not move back to... Where is home for 201 00:10:46,080 --> 00:10:48,840 Sean Aylmer: you? You've lived in about three or four places in 202 00:10:48,840 --> 00:10:50,220 Sean Aylmer: country New South Wales growing up. 203 00:10:50,910 --> 00:10:54,059 Michael Thompson: The north coast of New South Wales or Bathurst where 204 00:10:54,059 --> 00:10:57,570 Michael Thompson: I went to uni. Or hinti between Wagga and Albury. 205 00:10:57,570 --> 00:10:59,820 Michael Thompson: All over the place. I would go, except I suspect 206 00:10:59,820 --> 00:11:01,170 Michael Thompson: you would miss me too much, Sean. 207 00:11:03,450 --> 00:11:06,299 Sean Aylmer: Anyway, I've got some good news if you do want 208 00:11:06,299 --> 00:11:06,628 Sean Aylmer: to move though. 209 00:11:06,629 --> 00:11:10,170 Michael Thompson: Yeah, go on. My feelings are hurt, so please go on. 210 00:11:11,250 --> 00:11:14,189 Sean Aylmer: Demand for workers in regions hit record levels last year, 211 00:11:14,190 --> 00:11:18,118 Sean Aylmer: Michael, with December recording a 10% annual increase in the 212 00:11:18,120 --> 00:11:22,559 Sean Aylmer: number of roles advertised, outpacing growth in capital cities. That 213 00:11:22,559 --> 00:11:25,800 Sean Aylmer: came into about 3%. Late last year, the count of 214 00:11:25,800 --> 00:11:30,059 Sean Aylmer: online regional jobs advertised by jobs and schools, Australia was 215 00:11:30,059 --> 00:11:34,470 Sean Aylmer: more than 94, 000, which is double the pre- pandemic level. 216 00:11:34,770 --> 00:11:37,650 Sean Aylmer: The top four categories for vacancies in regional Australia are 217 00:11:37,650 --> 00:11:42,449 Sean Aylmer: medical practitioners and nurses, general inquiry clerks, call center workers 218 00:11:42,450 --> 00:11:48,210 Sean Aylmer: and receptionists, carers and aides, and salespeople and sales assistants. 219 00:11:48,270 --> 00:11:50,160 Michael Thompson: What's a general inquiry clerk? 220 00:11:50,639 --> 00:11:54,330 Sean Aylmer: Oh, front desk. People at the front desk I would imagine. 221 00:11:54,540 --> 00:11:56,580 Michael Thompson: Oh, so it's essentially reception. 222 00:11:57,660 --> 00:12:01,260 Sean Aylmer: Yeah. Well, the category is general inquiry clerks, call center 223 00:12:01,260 --> 00:12:04,650 Sean Aylmer: workers and receptionists. I'm not quite sure what the distinction 224 00:12:04,650 --> 00:12:08,040 Sean Aylmer: between receptionists and general inquiry clerks are. Probably not much, 225 00:12:08,040 --> 00:12:08,490 Sean Aylmer: I'm guessing. 226 00:12:08,670 --> 00:12:11,670 Michael Thompson: No. If they're all grouped together, they're probably all fairly 227 00:12:11,670 --> 00:12:14,429 Michael Thompson: similar I'd imagine. But I don't think anyone would get that 228 00:12:14,429 --> 00:12:16,828 Michael Thompson: on their business card, would they? I mean, you could 229 00:12:16,830 --> 00:12:19,380 Michael Thompson: understand someone having call center on their business card or 230 00:12:19,380 --> 00:12:22,380 Michael Thompson: receptionist on their business card. I've never seen someone get 231 00:12:22,380 --> 00:12:24,780 Michael Thompson: general inquiry clerk on their business card. 232 00:12:25,260 --> 00:12:29,189 Sean Aylmer: No, but do you think you get receptionists anymore? This is 233 00:12:29,190 --> 00:12:33,780 Sean Aylmer: something from the Regional Australia Institute. And even the term 234 00:12:33,780 --> 00:12:37,200 Sean Aylmer: receptionist, I don't know that I'd use receptionist anymore. 235 00:12:38,010 --> 00:12:40,920 Michael Thompson: No, it's usually director of first impressions or something like that. 236 00:12:40,920 --> 00:12:44,789 Sean Aylmer: Or something like that. That's right. Exactly. Anyway, Regional Australia 237 00:12:44,790 --> 00:12:47,789 Sean Aylmer: Institute, Chief Executive Officer, Liz Ritchie, who of course, has 238 00:12:47,790 --> 00:12:51,299 Sean Aylmer: been on our program, said the roles represent a total 239 00:12:51,299 --> 00:12:54,870 Sean Aylmer: of $ 1. 76 billion in direct wages paid to residents 240 00:12:54,870 --> 00:13:00,600 Sean Aylmer: of Regional Australia. She highlighted that the estimated 1, 670 advertised childcare 241 00:13:00,600 --> 00:13:06,419 Sean Aylmer: roles in regional Australia could potentially enable about 11 or 12, 000 parents 242 00:13:06,420 --> 00:13:10,200 Sean Aylmer: and guardians to participate in the workforce. Interesting. 243 00:13:10,859 --> 00:13:12,750 Michael Thompson: If you could come up with your own job title, 244 00:13:13,260 --> 00:13:17,189 Michael Thompson: wouldn't you go president of front office smiles or something 245 00:13:17,190 --> 00:13:17,670 Michael Thompson: like that? 246 00:13:17,760 --> 00:13:20,099 Sean Aylmer: I love the fact, once we started that conversation, then 247 00:13:20,099 --> 00:13:22,319 Sean Aylmer: I went on for the rest of the story. Clearly, 248 00:13:22,349 --> 00:13:24,059 Sean Aylmer: you didn't listen to a word of it. It was 249 00:13:24,059 --> 00:13:27,810 Sean Aylmer: all about what's a good job title for yourself. 250 00:13:28,830 --> 00:13:30,990 Michael Thompson: Fair. Anyway. Okay, I'll work on this maybe later in 251 00:13:30,990 --> 00:13:31,590 Michael Thompson: the week, we can... 252 00:13:32,190 --> 00:13:33,420 Sean Aylmer: We can come up with something. 253 00:13:33,660 --> 00:13:37,890 Michael Thompson: Give ourselves new job titles. Sean, retail sales. Feels a 254 00:13:37,890 --> 00:13:40,799 Michael Thompson: bit flat going from kind of job titles to retail sales. 255 00:13:40,920 --> 00:13:42,270 Sean Aylmer: Well, they were flat last month. 256 00:13:42,270 --> 00:13:44,519 Michael Thompson: Perfect segue in that case. Because this was across the 257 00:13:44,520 --> 00:13:48,958 Michael Thompson: country, fairly flat last month. A lower outcome than economists 258 00:13:48,958 --> 00:13:49,590 Michael Thompson: were expecting. 259 00:13:49,920 --> 00:13:52,348 Sean Aylmer: Yeah, it basically just shows that spending has really slowed 260 00:13:52,350 --> 00:13:55,770 Sean Aylmer: in recent months. In fact, annual growth in spending rose 261 00:13:55,890 --> 00:13:58,110 Sean Aylmer: just a little over 4% in the 12 months at the end 262 00:13:58,110 --> 00:14:01,530 Sean Aylmer: of April. 12 months to the end of August last year 263 00:14:01,530 --> 00:14:04,949 Sean Aylmer: with about 19%. It just shows how much it's fallen. And 264 00:14:04,949 --> 00:14:07,410 Sean Aylmer: these are nominal numbers. In real terms, when you take 265 00:14:07,410 --> 00:14:11,790 Sean Aylmer: inflation into account, retail spending is definitely going backwards. Spending 266 00:14:11,790 --> 00:14:14,910 Sean Aylmer: on household goods, eating out, and food were all lower. 267 00:14:15,120 --> 00:14:18,780 Sean Aylmer: But the cooler weather helped some areas, clothing, footwear, department 268 00:14:18,780 --> 00:14:21,750 Sean Aylmer: store spending. None of this is really that much of 269 00:14:21,750 --> 00:14:24,269 Sean Aylmer: a surprise I suppose. It's pretty clear higher interest rates, 270 00:14:24,270 --> 00:14:27,990 Sean Aylmer: inflation and other cost of living factors are really starting 271 00:14:27,990 --> 00:14:29,100 Sean Aylmer: to bite consumers. 272 00:14:29,760 --> 00:14:32,970 Michael Thompson: Billionaire, Mike Cannon- Brookes has prevailed in a fight with 273 00:14:32,970 --> 00:14:36,809 Michael Thompson: Andrew Forrest for control of Australia's biggest renewable energy project, 274 00:14:36,809 --> 00:14:41,700 Michael Thompson: Sean. The 30 billion Sun Cable export venture to Singapore. 275 00:14:42,090 --> 00:14:44,580 Sean Aylmer: Yes. We talked about it late last week. The Australian 276 00:14:44,580 --> 00:14:47,460 Sean Aylmer: reported that it was about to happen. It has happened now. 277 00:14:47,460 --> 00:14:51,479 Sean Aylmer: It's official, Sun Cable was placed into voluntary administration in 278 00:14:51,480 --> 00:14:54,570 Sean Aylmer: January, of course, after Dr. Forrest and Mr. Cannon- Brookes 279 00:14:54,570 --> 00:14:58,020 Sean Aylmer: clashed over funding management strategy of the company. The voluntary 280 00:14:58,020 --> 00:15:01,830 Sean Aylmer: administrators late last week said, Mr. Cannon- Brookes's Grok Ventures 281 00:15:01,980 --> 00:15:06,210 Sean Aylmer: plans to continue to progress the Australia- Asia Powerlink project 282 00:15:06,210 --> 00:15:09,330 Sean Aylmer: to a final investment decision with stage one to deliver 283 00:15:09,330 --> 00:15:13,859 Sean Aylmer: 900 megawatts of generation into Darwin and about 1. 8 gigawatts 284 00:15:13,860 --> 00:15:17,609 Sean Aylmer: of energy supplies into Singapore. There's still plenty of skepticism 285 00:15:17,609 --> 00:15:21,240 Sean Aylmer: about the Sun Cable's plan to construct a 4, 200 kilometer 286 00:15:21,570 --> 00:15:25,710 Sean Aylmer: undersea link to Singapore. Which, Mike, would be five times 287 00:15:25,710 --> 00:15:27,750 Sean Aylmer: bigger than the longest submarine link. I want to know 288 00:15:27,750 --> 00:15:29,700 Sean Aylmer: whether you were listening last week. Do you remember where 289 00:15:29,700 --> 00:15:31,769 Sean Aylmer: that one went? I bet you remember the name. Do 290 00:15:31,770 --> 00:15:32,250 Sean Aylmer: you remember? 291 00:15:35,129 --> 00:15:35,130 Michael Thompson: Yeah, was it the Viking Link? 292 00:15:35,130 --> 00:15:35,131 Sean Aylmer: Yes. It was. 293 00:15:35,131 --> 00:15:36,900 Michael Thompson: And it was in Scandinavia somewhere. 294 00:15:37,920 --> 00:15:41,010 Sean Aylmer: Ah, no. You need to do better than that. 295 00:15:41,100 --> 00:15:47,609 Michael Thompson: Denmark to Norway. Do they need it? Oh God, I'm 296 00:15:47,610 --> 00:15:50,669 Michael Thompson: going to fail geography here. Do they need an undersea 297 00:15:50,670 --> 00:15:52,859 Michael Thompson: link or do they have a land borderer? God, I 298 00:15:52,859 --> 00:15:55,620 Michael Thompson: should not have volunteered countries just then. 299 00:16:00,090 --> 00:16:01,140 Sean Aylmer: Britain to Denmark. 300 00:16:02,490 --> 00:16:03,540 Michael Thompson: I was kind of close. 301 00:16:04,349 --> 00:16:05,010 Sean Aylmer: Well, Denmark. 302 00:16:05,370 --> 00:16:06,959 Michael Thompson: Yeah, got half of it. 303 00:16:07,590 --> 00:16:09,569 Sean Aylmer: Oh, just confidence was excellent. 304 00:16:09,870 --> 00:16:12,810 Michael Thompson: Oh, well no, I was hoping you wouldn't remember. There's always a 305 00:16:12,840 --> 00:16:13,979 Michael Thompson: chance that you'll have forgotten. 306 00:16:13,980 --> 00:16:15,630 Sean Aylmer: That's true. I wouldn't have asked otherwise. 307 00:16:15,810 --> 00:16:19,470 Michael Thompson: Yeah. In international news, Sean, a Chinese- made aircraft to 308 00:16:19,470 --> 00:16:23,790 Michael Thompson: rival Boeing and Airbus undertook its maiden commercial flight yesterday, 309 00:16:24,030 --> 00:16:27,210 Michael Thompson: six months after being delivered to China, Eastern Airlines. 310 00:16:27,509 --> 00:16:30,750 Sean Aylmer: The plane from the commercial aircraft Corp of China, or 311 00:16:30,750 --> 00:16:36,540 Sean Aylmer: COMAC, carried 128 passengers landed safely at Beijing. The manufacturer 312 00:16:36,540 --> 00:16:39,809 Sean Aylmer: first started developing the narrow- body air airliner back in 313 00:16:39,809 --> 00:16:44,999 Sean Aylmer: 2008. Production began in late 2011, but it wasn't until 314 00:16:45,000 --> 00:16:49,410 Sean Aylmer: September last year that the C919 received official certification to 315 00:16:49,410 --> 00:16:52,950 Sean Aylmer: fly. According to Bloomberg, China wants to disrupt the dominance 316 00:16:52,950 --> 00:16:57,269 Sean Aylmer: of Boeing and Airbus in commercial jetliner manufacturing. Now, given 317 00:16:57,330 --> 00:17:02,490 Sean Aylmer: Airbus's A320neo family and Boeing 737 MAX jets have a 318 00:17:02,490 --> 00:17:06,180 Sean Aylmer: full order book through to the end of this decade, 319 00:17:06,869 --> 00:17:11,700 Sean Aylmer: any carrier wanting narrow- body jets sooner, well, they will 320 00:17:11,700 --> 00:17:14,910 Sean Aylmer: need an alternative. And Commercial Aircraft Corp of China might 321 00:17:14,910 --> 00:17:15,750 Sean Aylmer: provide them with one. 322 00:17:16,230 --> 00:17:20,158 Michael Thompson: Finally, Sean, this next story, this one. 323 00:17:20,160 --> 00:17:23,879 Sean Aylmer: Sometimes you just need a story because it's just too 324 00:17:23,879 --> 00:17:25,050 Sean Aylmer: ridiculous to be true. 325 00:17:25,170 --> 00:17:28,050 Michael Thompson: Well, where do you find these sometimes? This is about 326 00:17:28,290 --> 00:17:32,099 Michael Thompson: a government official in India has been suspended from his 327 00:17:32,099 --> 00:17:37,530 Michael Thompson: job after he ordered a water reservoir to be drained 328 00:17:38,460 --> 00:17:41,910 Michael Thompson: so that he could retrieve his smartphone, which he dropped 329 00:17:41,910 --> 00:17:43,829 Michael Thompson: while taking a selfie, of course. 330 00:17:44,249 --> 00:17:49,080 Sean Aylmer: Of course. The food inspector dropped his Samsung smartphone in 331 00:17:49,080 --> 00:17:52,500 Sean Aylmer: something called Kherkatta Dam in Central India, The Times of 332 00:17:52,500 --> 00:17:57,388 Sean Aylmer: India newspaper has reported. The inspector then told local divers 333 00:17:57,388 --> 00:17:59,759 Sean Aylmer: to jump into the reservoir to find the phone, claiming 334 00:17:59,760 --> 00:18:04,380 Sean Aylmer: it had sensitive government data. That failed, so he did 335 00:18:04,380 --> 00:18:06,898 Sean Aylmer: what any sensible food inspector would do. He asked for 336 00:18:06,900 --> 00:18:10,349 Sean Aylmer: the reservoir to be emptied using diesel pumps. Over the 337 00:18:10,349 --> 00:18:13,259 Sean Aylmer: next three days, more than 2 million liters of water 338 00:18:13,259 --> 00:18:16,769 Sean Aylmer: was pumped out. That apparently is enough to irrigate about 339 00:18:16,888 --> 00:18:20,398 Sean Aylmer: 15,000 acres of land. This is all according to a 340 00:18:20,400 --> 00:18:23,010 Sean Aylmer: story on Bloomberg. The food inspector told local media the 341 00:18:23,010 --> 00:18:26,158 Sean Aylmer: water in the reservoir was unusable for irrigation and that 342 00:18:26,160 --> 00:18:28,980 Sean Aylmer: he'd received permission from a senior official to drain it. None of 343 00:18:29,550 --> 00:18:32,428 Sean Aylmer: that seems to be true. Irony is they found the 344 00:18:32,429 --> 00:18:35,249 Sean Aylmer: phone, Michael. Guess what? Didn't work. It was waterlogged. 345 00:18:35,759 --> 00:18:41,340 Michael Thompson: Oh, what was he expecting? Honestly. Sean, I reckon you 346 00:18:41,340 --> 00:18:45,688 Michael Thompson: have just found probably the most unusual story of the year. 347 00:18:46,230 --> 00:18:47,369 Sean Aylmer: Yes, possibly. 348 00:18:48,599 --> 00:18:51,359 Michael Thompson: That is just fantastic. And I just love that the food 349 00:18:51,359 --> 00:18:53,399 Michael Thompson: inspector actually had the authority or the- 350 00:18:53,400 --> 00:18:54,540 Sean Aylmer: Yes, that's what I thought. 351 00:18:55,000 --> 00:18:56,071 Michael Thompson: (inaudible) to do this. 352 00:18:56,071 --> 00:18:59,610 Sean Aylmer: Yes. 2 million liters of water over three days. It wasn't... 353 00:19:02,638 --> 00:19:04,859 Sean Aylmer: There's a story that the local media took photos of 354 00:19:04,859 --> 00:19:07,710 Sean Aylmer: him just sitting by the diesel pumps under a red 355 00:19:07,710 --> 00:19:09,449 Sean Aylmer: umbrella, just watching. 356 00:19:10,080 --> 00:19:13,710 Michael Thompson: Just waiting. Waiting to retrieve his phone. Oh, well that 357 00:19:13,710 --> 00:19:15,418 Michael Thompson: is just an absolute cracker. I don't know how we 358 00:19:15,420 --> 00:19:17,820 Michael Thompson: go from there to anywhere else. I think we'll just 359 00:19:17,820 --> 00:19:20,158 Michael Thompson: wrap it up. Up next is the Fear & Greed Daily 360 00:19:20,160 --> 00:19:24,178 Michael Thompson: interview. Daniel Shrimski, managing director of Vanguard Australia is your 361 00:19:24,179 --> 00:19:24,720 Michael Thompson: guest today. 362 00:19:25,109 --> 00:19:28,079 Sean Aylmer: Yes. It's all about a research report that Vanguard have 363 00:19:28,080 --> 00:19:32,070 Sean Aylmer: put out about superannuation and saving for retirement. Those that are 364 00:19:32,100 --> 00:19:34,500 Sean Aylmer: more comfortable, those that are planning, that type of thing. 365 00:19:34,830 --> 00:19:35,550 Sean Aylmer: Interesting chat. 366 00:19:35,880 --> 00:19:37,830 Michael Thompson: Yes. Coming up next in the Fear & Greed playlist on 367 00:19:37,830 --> 00:19:41,638 Michael Thompson: your podcast platform or at fearandgreed.com.au. And as well, Sean, 368 00:19:41,638 --> 00:19:43,739 Michael Thompson: we have Fear & Greed the week ahead with our resident 369 00:19:43,740 --> 00:19:46,379 Michael Thompson: economist, Stephen Koukoulas. A big week for Stephen. 370 00:19:46,770 --> 00:19:50,609 Sean Aylmer: Plenty going on. I think he's been relaxing a little 371 00:19:50,609 --> 00:19:52,888 Sean Aylmer: too much in the last couple of weeks, but this 372 00:19:52,890 --> 00:19:55,890 Sean Aylmer: week, we've got lots of data coming out. Of course, 373 00:19:55,890 --> 00:20:00,090 Sean Aylmer: we've got interest rates next week. He's very excited this 374 00:20:00,090 --> 00:20:00,810 Sean Aylmer: week, I would say. 375 00:20:01,138 --> 00:20:03,869 Michael Thompson: Yeah. Yeah. Big, big busy week. And that's all covered in 376 00:20:03,869 --> 00:20:05,218 Michael Thompson: the week ahead. Thank you very much, Sean. 377 00:20:05,430 --> 00:20:06,120 Sean Aylmer: Thank you, Michael. 378 00:20:06,180 --> 00:20:08,970 Michael Thompson: It's Monday the 29th of May, 2023. Make sure you're 379 00:20:08,970 --> 00:20:12,840 Michael Thompson: following the podcast. Join us online on LinkedIn, on Instagram and 380 00:20:12,840 --> 00:20:15,359 Michael Thompson: Twitter and Facebook. And you can stay up to date on all the 381 00:20:15,359 --> 00:20:18,450 Michael Thompson: business news with Alexa and your Amazon Echo smart speaker. 382 00:20:18,690 --> 00:20:21,630 Michael Thompson: Simply say, " Alexa, play the Fear & Greed podcast." To catch 383 00:20:21,630 --> 00:20:24,419 Michael Thompson: the loudest episode, you can grab yours now at amazon. com. 384 00:20:24,990 --> 00:20:27,660 Michael Thompson: au. I'm Michael Thompson and that was Fear & Greed. Have 385 00:20:27,660 --> 00:20:28,170 Michael Thompson: a great day.