1 00:00:04,160 --> 00:00:06,680 Speaker 1: Welcome to the weekend edition of The Fast Five Business 2 00:00:06,680 --> 00:00:09,240 Speaker 1: News by Fear and Greed. I'm Michael Thompson and Hello 3 00:00:09,320 --> 00:00:10,000 Speaker 1: Sean Aylmer. 4 00:00:10,160 --> 00:00:11,560 Speaker 2: Hello Michael Sean. 5 00:00:11,800 --> 00:00:13,840 Speaker 1: On weekdays, it's all about the Fast five, the top 6 00:00:13,840 --> 00:00:16,160 Speaker 1: five business stories in five minutes. On the weekend, we still, 7 00:00:16,160 --> 00:00:17,880 Speaker 1: of course keep it to five minutes, but we are 8 00:00:17,880 --> 00:00:20,240 Speaker 1: going to pick out the biggest business story of the week, 9 00:00:20,640 --> 00:00:23,800 Speaker 1: the most remarkable story, a sleeper story, one that's flying 10 00:00:23,840 --> 00:00:26,840 Speaker 1: under the radar a little bit, and our favorite business 11 00:00:26,880 --> 00:00:31,640 Speaker 1: related story. What was the biggest story this week? Do 12 00:00:31,640 --> 00:00:32,080 Speaker 1: you reckon? 13 00:00:32,120 --> 00:00:34,239 Speaker 2: I really think it was the economy. The big one 14 00:00:34,280 --> 00:00:36,640 Speaker 2: was the annual inflation figure for the twelve months to 15 00:00:36,720 --> 00:00:38,680 Speaker 2: the end of April. It came in at three point 16 00:00:38,720 --> 00:00:43,240 Speaker 2: six percent. It looks like inflation at best is flatlining. 17 00:00:43,280 --> 00:00:45,239 Speaker 2: It might even be rising, and we all know what 18 00:00:45,280 --> 00:00:47,720 Speaker 2: that means for interest rates. Nothing's going to happen for 19 00:00:47,760 --> 00:00:51,080 Speaker 2: a while. The trimmed mean measure of inflation, the Reserve 20 00:00:51,120 --> 00:00:53,360 Speaker 2: Bank likes that one takes out really volatile items like 21 00:00:53,400 --> 00:00:56,080 Speaker 2: fruit and veggies. It ticked up the four point one percent. 22 00:00:56,320 --> 00:00:59,000 Speaker 2: It isn't good. This is happening while we have really 23 00:00:59,040 --> 00:01:03,440 Speaker 2: weak retails going on. We have a dreadful construction sector. 24 00:01:03,480 --> 00:01:06,600 Speaker 2: Building approval figures this week dipped. In fact, we're running 25 00:01:06,600 --> 00:01:08,840 Speaker 2: about one hundred and sixty three thousand houses a year 26 00:01:08,880 --> 00:01:11,440 Speaker 2: the government's two hundred and forty thousand houses a year 27 00:01:11,480 --> 00:01:14,000 Speaker 2: to somehow address the housing crisis. The good news in 28 00:01:14,040 --> 00:01:17,080 Speaker 2: the economy's business investment that is up. We also had 29 00:01:17,120 --> 00:01:19,280 Speaker 2: the Reserve Bank chief economists there a Hunter coming out 30 00:01:19,280 --> 00:01:21,760 Speaker 2: this week saying that the Central Bank Board is absolutely 31 00:01:21,800 --> 00:01:24,680 Speaker 2: focused on the fact that inflation is clearly still above 32 00:01:24,680 --> 00:01:27,480 Speaker 2: the target ban. Put all that together, we have a 33 00:01:27,640 --> 00:01:29,959 Speaker 2: weak economy and we are not going to get any 34 00:01:30,040 --> 00:01:32,759 Speaker 2: relief around interest rates anytime soon. 35 00:01:32,840 --> 00:01:35,040 Speaker 1: Michael, Yeah, that was the biggest story of the week. 36 00:01:35,040 --> 00:01:36,759 Speaker 1: It was also a big week though for a couple 37 00:01:36,800 --> 00:01:40,080 Speaker 1: of Australian companies on the world stage. Very quick mention 38 00:01:40,160 --> 00:01:43,839 Speaker 1: of these two BHP the big Australian seventy five billion 39 00:01:43,880 --> 00:01:47,440 Speaker 1: dollar bid for rival minor Anglo American. It had until 40 00:01:47,560 --> 00:01:50,040 Speaker 1: late Wednesday night to make a firm revised bid. It 41 00:01:50,080 --> 00:01:53,680 Speaker 1: couldn't need more time. Anglo refused. So now BHP retreats 42 00:01:54,040 --> 00:01:55,880 Speaker 1: and they can't do anything else for six months. In 43 00:01:55,920 --> 00:01:58,160 Speaker 1: the meantime, maybe we'll see someone else, maybe Rio Tinto 44 00:01:58,280 --> 00:02:00,480 Speaker 1: coming in now that we know that Anglo is on 45 00:02:00,560 --> 00:02:02,680 Speaker 1: the market if the deal is right. And the other 46 00:02:02,680 --> 00:02:05,000 Speaker 1: one Sean was lend Lee's former blue chip company this 47 00:02:05,040 --> 00:02:08,520 Speaker 1: week dumping its aggressive overseas expansion, writing down nearly one 48 00:02:08,520 --> 00:02:10,920 Speaker 1: and a half billion dollars in investments in its construction 49 00:02:11,080 --> 00:02:14,200 Speaker 1: and development operations. Instead, it's going to focus on Australia, 50 00:02:14,280 --> 00:02:16,919 Speaker 1: major change in strategy and really just a big week 51 00:02:17,000 --> 00:02:20,000 Speaker 1: for companies, for ossie companies on the world stage. 52 00:02:20,120 --> 00:02:22,200 Speaker 2: Sure was Michael your most remarkable story? 53 00:02:22,560 --> 00:02:25,320 Speaker 1: Most remarkable? There was only one, really, wasn't there. For 54 00:02:25,320 --> 00:02:28,240 Speaker 1: the first time in history, a former US president has 55 00:02:28,280 --> 00:02:31,040 Speaker 1: been convicted of a crime. Donald Trump found guilty this 56 00:02:31,080 --> 00:02:33,960 Speaker 1: week of thirty four counts of falsifying business records over 57 00:02:34,000 --> 00:02:36,360 Speaker 1: hush money payments to a porn star. A jury of 58 00:02:36,360 --> 00:02:39,000 Speaker 1: twelve New Yorkers found him guilty. He'll now be sentenced 59 00:02:39,000 --> 00:02:42,000 Speaker 1: in July. Potential for a whole range of different penalties, probation, 60 00:02:42,160 --> 00:02:45,000 Speaker 1: that kind of thing. Jail is a real possibility. If 61 00:02:45,040 --> 00:02:47,120 Speaker 1: he is jailed, he can still run as the Republican 62 00:02:47,120 --> 00:02:50,120 Speaker 1: candidate for the election in November. This is all very 63 00:02:50,280 --> 00:02:53,760 Speaker 1: very unknown. It's all unprecedented. This has never happened before. 64 00:02:53,880 --> 00:02:56,120 Speaker 1: People watching the trial were tipping that he would be 65 00:02:56,160 --> 00:02:59,400 Speaker 1: found guilty. Trump himself was probably expecting to be found guilty, 66 00:02:59,440 --> 00:03:02,839 Speaker 1: considering the before. He said that mother Theresa couldn't beat 67 00:03:02,880 --> 00:03:05,639 Speaker 1: these charges. The charges are rigged. He said it again afterwards, 68 00:03:05,639 --> 00:03:08,000 Speaker 1: saying it's a rigged trial by a conflicted judge who 69 00:03:08,040 --> 00:03:11,320 Speaker 1: is corrupt. The real verdict is going to be November five, 70 00:03:11,440 --> 00:03:14,640 Speaker 1: by the people. I am a very innocent man. Where 71 00:03:14,639 --> 00:03:17,280 Speaker 1: to now. A lot of Republicans don't seem too faced, 72 00:03:17,680 --> 00:03:19,960 Speaker 1: those in the campaign saying they're focused on the polls, 73 00:03:20,000 --> 00:03:22,480 Speaker 1: not on the verdict, really turning it into an asset. 74 00:03:22,639 --> 00:03:26,040 Speaker 1: Portraying him as a victim of the system, a political 75 00:03:26,080 --> 00:03:30,360 Speaker 1: prisoner was one tweet from the Republican campaign from Trump's campaign, 76 00:03:30,600 --> 00:03:32,440 Speaker 1: and it's worth noting that in the hour or two 77 00:03:32,600 --> 00:03:34,800 Speaker 1: after the decision, Trump was still a hot favorite to 78 00:03:34,800 --> 00:03:38,600 Speaker 1: win in betting market. So who knows. Just an extraordinary. 79 00:03:37,960 --> 00:03:40,080 Speaker 2: Story, yep, that was most remarkable story the week. Just 80 00:03:40,120 --> 00:03:42,640 Speaker 2: want to quickly mention the fact that the strange superannuation 81 00:03:42,760 --> 00:03:46,640 Speaker 2: industries closing in on four trillion dollars big inflows strong 82 00:03:46,680 --> 00:03:49,680 Speaker 2: returns over the past twelve months means that the sector 83 00:03:49,720 --> 00:03:52,320 Speaker 2: is now worth three point eighty five at trillion dollars, 84 00:03:53,000 --> 00:03:55,320 Speaker 2: still will below the housing sector that's worth about ten 85 00:03:55,480 --> 00:03:58,880 Speaker 2: trillion dollars. But given that the superannuation surcharge is increasing 86 00:03:58,880 --> 00:04:01,839 Speaker 2: from eleven percent to eleven half percent from July one, 87 00:04:02,160 --> 00:04:04,960 Speaker 2: that sector's getting even bigger growing challenge with some of 88 00:04:05,000 --> 00:04:08,080 Speaker 2: those big superfunds. Though, seven hundred thousand baby boomers going 89 00:04:08,080 --> 00:04:10,720 Speaker 2: to retire over the next five years draw down their savings. 90 00:04:11,560 --> 00:04:13,440 Speaker 2: How are they going to manage that? It's a big one. 91 00:04:13,680 --> 00:04:16,800 Speaker 1: Yeah, it certainly is. Can I nominate a sleeper story 92 00:04:16,920 --> 00:04:19,840 Speaker 1: for a short please do so. It's all about evs. 93 00:04:20,480 --> 00:04:22,839 Speaker 1: You would think that, with the extraordinary hype around electric 94 00:04:22,920 --> 00:04:24,680 Speaker 1: vehicles over the last couple of years, that the entire 95 00:04:24,720 --> 00:04:27,440 Speaker 1: world is about to go electric tomorrow. It is not. 96 00:04:27,600 --> 00:04:30,080 Speaker 1: Because this week the old guard of the automobile industry 97 00:04:30,080 --> 00:04:32,159 Speaker 1: stood together and said, nah, we're not done yet. The 98 00:04:32,200 --> 00:04:36,000 Speaker 1: bosses of Toyota, Mazda, and Subaru all pledged to continue 99 00:04:36,000 --> 00:04:39,120 Speaker 1: investing in fuel based technology. Toyota unveiling plans for a 100 00:04:39,160 --> 00:04:42,479 Speaker 1: new generation of internal combustion engines. What they're really focusing 101 00:04:42,560 --> 00:04:44,960 Speaker 1: on here is the presence of an engine alongside a 102 00:04:45,000 --> 00:04:47,760 Speaker 1: battery in a hybrid vehicle. It is. It's a bit 103 00:04:47,760 --> 00:04:50,159 Speaker 1: of a sleeper story because it's the first time really 104 00:04:50,200 --> 00:04:53,360 Speaker 1: that the vehicle makers have actually united and said no, 105 00:04:53,400 --> 00:04:56,040 Speaker 1: we're not going full electric yet there is still life 106 00:04:56,080 --> 00:05:00,279 Speaker 1: here in internal combustion engines. It's probably welcome news to 107 00:05:00,680 --> 00:05:02,680 Speaker 1: a lot of people in countries like Australia where we 108 00:05:02,760 --> 00:05:05,719 Speaker 1: just don't have the infrastructure yet to facilitate this mass 109 00:05:05,960 --> 00:05:09,480 Speaker 1: transition to evs. But really it didn't get that much 110 00:05:09,520 --> 00:05:12,159 Speaker 1: attention this week, but it is a major shift towards 111 00:05:12,160 --> 00:05:14,119 Speaker 1: where we're heading in terms of driving around the place. 112 00:05:14,320 --> 00:05:17,280 Speaker 1: Sure is favorite story, Sean, I know you've been itching 113 00:05:17,320 --> 00:05:17,960 Speaker 1: to do this one. 114 00:05:18,000 --> 00:05:20,120 Speaker 2: Go for it, Yes, the one about Sony Music being 115 00:05:20,200 --> 00:05:22,320 Speaker 2: the front runner to buy the music catalog of British 116 00:05:22,360 --> 00:05:24,560 Speaker 2: rock band Queen, which is expected to fetch about a 117 00:05:24,560 --> 00:05:27,200 Speaker 2: billion US dollars one and a half billion Aussie. Great 118 00:05:27,240 --> 00:05:30,440 Speaker 2: example of another asset class that has developed over recent years. 119 00:05:30,960 --> 00:05:33,680 Speaker 2: Queen has been shopping its music catalog around for more 120 00:05:33,720 --> 00:05:36,560 Speaker 2: than a year. It was talking to Sony and Universal Universes. 121 00:05:36,600 --> 00:05:39,520 Speaker 2: Basically thinks it's a bit rich billion US dollars. If 122 00:05:39,560 --> 00:05:41,080 Speaker 2: it does sell for that, it will be close to 123 00:05:41,080 --> 00:05:43,880 Speaker 2: a record price. It will include recorded music and publishing, 124 00:05:43,880 --> 00:05:46,680 Speaker 2: as well as other income including merchandise and licensing and 125 00:05:46,720 --> 00:05:49,719 Speaker 2: revenue from biopic film by Hami and Rhapsody. Of course, 126 00:05:49,720 --> 00:05:52,400 Speaker 2: we've had Bruce Springsteen do this, Bob Dylan, Neil Young 127 00:05:52,440 --> 00:05:56,320 Speaker 2: more recently Kiss. However, Queen's the big one, most commercially 128 00:05:56,360 --> 00:05:59,440 Speaker 2: successful group in music history, or at least one of them, 129 00:05:59,600 --> 00:06:01,839 Speaker 2: having some more than three hundred million records globally. 130 00:06:02,200 --> 00:06:04,000 Speaker 1: It is a great story, that one. There we go 131 00:06:04,120 --> 00:06:05,880 Speaker 1: five minutes and pretty much everything you need to know 132 00:06:05,880 --> 00:06:08,240 Speaker 1: in the world of business. Thank you, Sean, Thank you Michael. 133 00:06:08,360 --> 00:06:10,120 Speaker 1: We'll be back on Monday morning with the top five 134 00:06:10,160 --> 00:06:12,680 Speaker 1: business stories in five minutes. Don't forget to hit follow 135 00:06:12,720 --> 00:06:16,279 Speaker 1: and please join us online on Instagram, TikTok, LinkedIn, Facebook 136 00:06:16,279 --> 00:06:18,760 Speaker 1: and x Michael Thompson and this is the fast five 137 00:06:18,800 --> 00:06:20,240 Speaker 1: business news by Fear and Greed