1 00:00:03,720 --> 00:00:06,320 Speaker 1: Welcome to the Fear and Green Business Newsday Afternoon Report 2 00:00:06,360 --> 00:00:09,000 Speaker 1: for Wednesday, the twenty sixth of June twenty twenty four. 3 00:00:09,080 --> 00:00:11,400 Speaker 1: Every afternoon, we've got the five stories that happened today 4 00:00:11,400 --> 00:00:13,880 Speaker 1: that you need to know about. Stort Num one inflation 5 00:00:14,040 --> 00:00:16,319 Speaker 1: rose from three point six percent to four percent in 6 00:00:16,360 --> 00:00:18,599 Speaker 1: the year to the end of May, sparking fears for 7 00:00:18,640 --> 00:00:22,120 Speaker 1: a rate rise sometime this year. While the consensus view 8 00:00:22,160 --> 00:00:24,520 Speaker 1: remains that the next move in rates is down, the 9 00:00:24,520 --> 00:00:29,360 Speaker 1: Australian Bureau Statistics data released this morning certainly unsettled markets. 10 00:00:29,560 --> 00:00:32,519 Speaker 1: The SMPASX two hundred was poorly ahead of the inflation 11 00:00:32,600 --> 00:00:34,560 Speaker 1: number and then dropped even further to its low for 12 00:00:34,600 --> 00:00:37,320 Speaker 1: the day. By the close, the benchmark had recovered some 13 00:00:37,400 --> 00:00:40,960 Speaker 1: ground and finished down zero point seven percent to seven 14 00:00:41,080 --> 00:00:43,960 Speaker 1: hundred and eighty three points. The interest rate sensitive sectors 15 00:00:43,960 --> 00:00:47,400 Speaker 1: were hit hardest, led lower by real estate companies. Center 16 00:00:47,440 --> 00:00:49,880 Speaker 1: Group fell three percent, while Goodwin Group was down nearly 17 00:00:49,920 --> 00:00:53,120 Speaker 1: two percent. The surprise spike hit some of the consumer 18 00:00:53,159 --> 00:00:56,920 Speaker 1: discretionary stocks as well. Collins Foods, owner of KFC and 19 00:00:56,960 --> 00:00:59,760 Speaker 1: Taco bell It fell nearly nine percent, and harve In 20 00:00:59,800 --> 00:01:02,800 Speaker 1: Normal was off eight percent. Eagers Automotive dropped three point 21 00:01:02,840 --> 00:01:05,760 Speaker 1: six percent, while leader JB hi Fi ended down more 22 00:01:05,800 --> 00:01:08,800 Speaker 1: than three percent. The bank's ended lower, with Commonwealth Bank 23 00:01:08,800 --> 00:01:10,880 Speaker 1: and A and Z both off one and a half percent. 24 00:01:11,160 --> 00:01:13,960 Speaker 1: West Farmer's QB in South thirty two all fill more 25 00:01:14,000 --> 00:01:16,240 Speaker 1: than two percent. You get the gist. The energy in 26 00:01:16,280 --> 00:01:20,000 Speaker 1: tech stocks did best. Story number two. Australians are leaving 27 00:01:20,000 --> 00:01:24,360 Speaker 1: the mortgage market in unusually large numbers, presumably due to 28 00:01:24,360 --> 00:01:27,560 Speaker 1: one going high interest rates, while those with mortgages are 29 00:01:27,600 --> 00:01:31,200 Speaker 1: increasingly taking advantage of offset accounts. That's the findings of 30 00:01:31,240 --> 00:01:33,479 Speaker 1: the Reserve Bank, which has been looking at the mortgage 31 00:01:33,560 --> 00:01:37,120 Speaker 1: discharge rate, which measures people either paying off their homes 32 00:01:37,440 --> 00:01:39,600 Speaker 1: or getting out of the market. It's running at about 33 00:01:39,600 --> 00:01:42,679 Speaker 1: forty billion dollars per quarter, while the amount of new 34 00:01:42,720 --> 00:01:45,600 Speaker 1: loans is running at eighty billion dollars per quarter. The 35 00:01:45,720 --> 00:01:48,639 Speaker 1: ratio of discharges to new loans is sitting at fifty percent, 36 00:01:48,920 --> 00:01:51,880 Speaker 1: and that's the highest rate since at least two thousand 37 00:01:51,920 --> 00:01:55,080 Speaker 1: and nine, the Reserve Bank says. Taken together, the figures 38 00:01:55,080 --> 00:01:58,960 Speaker 1: suggest that highly leveraged investors, those with polenty of debt 39 00:01:59,280 --> 00:02:03,000 Speaker 1: and homeowners are selling and on average being replaced with 40 00:02:03,080 --> 00:02:06,920 Speaker 1: buyers with a larger deposit storrow number three. Seven West 41 00:02:07,000 --> 00:02:09,400 Speaker 1: Media has announced big changes at the top of the 42 00:02:09,480 --> 00:02:12,680 Speaker 1: organization as it struggles to turn around its ailing profits. 43 00:02:12,880 --> 00:02:15,560 Speaker 1: The head of sales Kurt Burnett, the marketing chief miss 44 00:02:15,560 --> 00:02:18,200 Speaker 1: The Hopkins, and the sports chief Lewis Martin have all 45 00:02:18,280 --> 00:02:21,680 Speaker 1: left the company. It follows the departure of CEO James Warburton, 46 00:02:22,080 --> 00:02:26,160 Speaker 1: legal chief Bruce McWilliam and news chief Craig McPherson two 47 00:02:26,200 --> 00:02:30,520 Speaker 1: months ago. Basically everyone is out except the former chief 48 00:02:30,560 --> 00:02:34,480 Speaker 1: financial officer now CEO Jeff Howard. Seven, along with competitor 49 00:02:34,520 --> 00:02:37,440 Speaker 1: and Nine Entertainment, is struggling with lower free to air 50 00:02:37,480 --> 00:02:41,720 Speaker 1: audiences and a cyclical downturn in AdSpend. Unlike Nine, which 51 00:02:41,760 --> 00:02:44,919 Speaker 1: owned stands, seven doesn't have a streaming service to rely upon. 52 00:02:45,480 --> 00:02:49,160 Speaker 1: Story number four. The world is headed for food wars 53 00:02:49,280 --> 00:02:53,280 Speaker 1: as geopolitical tensions and climate change push countries into conflict 54 00:02:53,360 --> 00:02:56,600 Speaker 1: over waning supplies, according to one of the world's largest 55 00:02:56,639 --> 00:03:00,760 Speaker 1: agricultural commodity traders, Sunny V. Gays. The boss Olham Group, 56 00:03:00,960 --> 00:03:04,320 Speaker 1: one of the world's biggest agricultural trading houses, said many 57 00:03:04,360 --> 00:03:06,800 Speaker 1: wars have been fought over oyal but now there'll be 58 00:03:06,840 --> 00:03:09,840 Speaker 1: bigger wars over food and water. He warned that trade 59 00:03:09,840 --> 00:03:13,400 Speaker 1: barriers imposed by governments seeking to shore up domestic food 60 00:03:13,440 --> 00:03:17,320 Speaker 1: stocks had exacerbated food inflation. According to report in The 61 00:03:17,320 --> 00:03:21,320 Speaker 1: Financial Times, a proliferation of non tariff trade barriers in 62 00:03:21,320 --> 00:03:24,480 Speaker 1: twenty twenty two twelve hundred and sixty six from one 63 00:03:24,600 --> 00:03:28,600 Speaker 1: hundred and fifty four countries by vigases count had created 64 00:03:28,680 --> 00:03:33,040 Speaker 1: an exaggerated demand supply imbalance. Wealthier countries for building up 65 00:03:33,080 --> 00:03:37,520 Speaker 1: surpluses of strategic commodities like food, leading to exaggerated demand 66 00:03:37,720 --> 00:03:41,600 Speaker 1: and in turn higher prices and storing. Number five German 67 00:03:41,720 --> 00:03:45,200 Speaker 1: car making giant Volkswagen will invest up to five billion 68 00:03:45,320 --> 00:03:48,600 Speaker 1: US dollars in a joint venture with US based EV 69 00:03:48,800 --> 00:03:52,240 Speaker 1: maker Rivian. Rivian is a rival to Tesla. Its share 70 00:03:52,240 --> 00:03:55,920 Speaker 1: price jumped almost fifty percent after the announcement was made overnight. 71 00:03:56,240 --> 00:03:59,120 Speaker 1: The two companies who agreed to share technology. Founded in 72 00:03:59,120 --> 00:04:01,440 Speaker 1: two thousand and nine. Rivian has not yet made a 73 00:04:01,520 --> 00:04:05,120 Speaker 1: quarterly profit. According to a report on BBC, VW has 74 00:04:05,120 --> 00:04:08,160 Speaker 1: come under pressure from rivals like Tesla and China's BYD 75 00:04:08,680 --> 00:04:11,360 Speaker 1: as it tries to make the shift from fossil fuel 76 00:04:11,400 --> 00:04:14,960 Speaker 1: powered vehicles into evs. Separately this week, Tesla said it 77 00:04:15,000 --> 00:04:17,640 Speaker 1: would recall most of its eleven thousand cyber trucks sold 78 00:04:17,640 --> 00:04:20,839 Speaker 1: in the US for issues with their windscreen, wipers, and 79 00:04:20,960 --> 00:04:24,240 Speaker 1: exterior trim. That's it for the afternoon report for Wednesday, 80 00:04:24,320 --> 00:04:27,200 Speaker 1: the twenty sixth of June twenty twenty four. Michael Thompson 81 00:04:27,240 --> 00:04:29,200 Speaker 1: and I will be back tomorrow morning with a Thursday 82 00:04:29,320 --> 00:04:32,160 Speaker 1: edition off few and brief business news. I'm Sean Elmer. 83 00:04:32,839 --> 00:04:33,560 Speaker 1: Enjoy your evening.