1 00:00:03,840 --> 00:00:06,880 Speaker 1: It's Friday, the ninth of August twenty twenty four. Welcome 2 00:00:06,960 --> 00:00:09,320 Speaker 1: to the Fast five Business News by Fear and Greed. 3 00:00:09,320 --> 00:00:11,119 Speaker 1: When we give you the top five business stories you 4 00:00:11,200 --> 00:00:13,640 Speaker 1: need to know in just five minutes. I'm Michael Thompson 5 00:00:13,680 --> 00:00:15,040 Speaker 1: and good morning Sean Aylmer. 6 00:00:15,280 --> 00:00:16,800 Speaker 2: Good morning, Michael Sewan. 7 00:00:16,880 --> 00:00:20,480 Speaker 1: Five stories, five minutes. Let's go. Story number one. Former 8 00:00:20,560 --> 00:00:23,720 Speaker 1: Quantus Chief executive Alan Joyce will lose more than nine 9 00:00:23,840 --> 00:00:26,759 Speaker 1: million dollars of his pay after a board commissioned review 10 00:00:27,120 --> 00:00:32,040 Speaker 1: found mistakes made by the airline's management created quote significant 11 00:00:32,200 --> 00:00:34,800 Speaker 1: reputational and customer service issues. 12 00:00:35,120 --> 00:00:37,720 Speaker 2: The governance review, which was announced the mid intense political 13 00:00:37,720 --> 00:00:41,000 Speaker 2: and investor pressure last year, found the deterioration of Quantus's 14 00:00:41,040 --> 00:00:44,720 Speaker 2: relationship with customers and regulators was due to too much 15 00:00:44,840 --> 00:00:48,360 Speaker 2: difference to a long tenured CEO. It found that the 16 00:00:48,360 --> 00:00:51,239 Speaker 2: board didn't always challenge management, and the company ignored non 17 00:00:51,280 --> 00:00:54,280 Speaker 2: financial risks. It also said that Quantus had a command 18 00:00:54,320 --> 00:00:57,960 Speaker 2: and control leadership style with centralized decisions. This created a 19 00:00:58,000 --> 00:01:01,640 Speaker 2: culture with impacted empowerment and a willingness to challenge or 20 00:01:01,680 --> 00:01:04,560 Speaker 2: speak up on issues now. The report also said Quantus 21 00:01:04,600 --> 00:01:08,280 Speaker 2: often had an adversarial approach to engagement with key stakeholders 22 00:01:08,319 --> 00:01:12,360 Speaker 2: and external communications. Mister Joyce led Quantus for fifteen years 23 00:01:12,440 --> 00:01:15,120 Speaker 2: until last year. He'll lose nine point three million dollars 24 00:01:15,319 --> 00:01:17,880 Speaker 2: of his twenty twenty three pay packet, meaning he'll earn 25 00:01:17,959 --> 00:01:21,440 Speaker 2: fourteen point nine million dollars for that year. Incoming chair 26 00:01:21,520 --> 00:01:23,960 Speaker 2: John Mullen said it's important that the board understood what 27 00:01:24,000 --> 00:01:26,840 Speaker 2: went wrong during a turbulent period after the COVID nineteen 28 00:01:26,880 --> 00:01:29,640 Speaker 2: pandemic and learns from its mistakes. 29 00:01:30,280 --> 00:01:32,920 Speaker 1: Sean, what do you make of this? Is Quantas accepting 30 00:01:33,040 --> 00:01:36,000 Speaker 1: enough responsibility or are they throwing Alan Joyce under the bus. 31 00:01:36,480 --> 00:01:39,080 Speaker 2: It's probably closer to throwing Joyce under the bus. Having 32 00:01:39,120 --> 00:01:41,520 Speaker 2: said that the CEO creates a culture and Quantus was 33 00:01:41,520 --> 00:01:44,240 Speaker 2: topped down. Alan Joyce has been made the scapegoat for 34 00:01:44,280 --> 00:01:47,800 Speaker 2: what happened, but he was CEO. He bears the primary blame. 35 00:01:47,920 --> 00:01:52,680 Speaker 2: That's fair. Remember his reputation ahead of all that was fantastic. 36 00:01:52,720 --> 00:01:54,600 Speaker 2: He was involved in setting up Jet Stay. He led 37 00:01:54,600 --> 00:01:56,800 Speaker 2: the group as it built the loyalty program to be 38 00:01:56,920 --> 00:01:59,840 Speaker 2: the most powerful in the country. He stared down pilots 39 00:02:00,040 --> 00:02:03,040 Speaker 2: rounding aircraft in twenty eleven. Certainly shady strength that one 40 00:02:03,280 --> 00:02:06,480 Speaker 2: probably best of all, he got quantus through COVID. He's 41 00:02:06,520 --> 00:02:08,600 Speaker 2: not the first CEA to have a bad end, tarnish 42 00:02:08,680 --> 00:02:12,240 Speaker 2: and otherwise good reputation. Brian Hartzter and Ian rev from 43 00:02:12,240 --> 00:02:15,000 Speaker 2: Westpac and Comwealth Bank respectively put them in that group, 44 00:02:15,360 --> 00:02:19,079 Speaker 2: so to Reserve Bank Governor Phil low all Right. 45 00:02:19,160 --> 00:02:21,359 Speaker 1: Moving on to story number two now and Reserve Bank 46 00:02:21,360 --> 00:02:25,080 Speaker 1: Governor Michelle Bullock was speaking at the Rotary Club in 47 00:02:25,120 --> 00:02:28,240 Speaker 1: our hometown of Armadale in northwestern New South Wales yesterday 48 00:02:28,639 --> 00:02:32,000 Speaker 1: and returning to her local community Sean didn't exactly soften 49 00:02:32,040 --> 00:02:35,600 Speaker 1: her rhetoric. She said, this central Bank won't hesitate to 50 00:02:35,680 --> 00:02:37,480 Speaker 1: lift interest rates if it thinks it needs to. 51 00:02:38,120 --> 00:02:40,480 Speaker 2: In fact, specifically, I know this is not what people 52 00:02:40,560 --> 00:02:43,440 Speaker 2: want to hear, but the alternative of persistently high inflation 53 00:02:43,600 --> 00:02:46,080 Speaker 2: is worse. It hurts everyone. The Reserve Bank and the 54 00:02:46,080 --> 00:02:48,720 Speaker 2: government are at odds over where the government spending is 55 00:02:48,800 --> 00:02:52,520 Speaker 2: hindering the fight against inflation. Yesterday, Miss Bullock said governments 56 00:02:52,520 --> 00:02:55,680 Speaker 2: were doing what they can do to balance their responsibilities 57 00:02:55,680 --> 00:02:59,560 Speaker 2: to fight inflation and spend money on services. She said 58 00:02:59,600 --> 00:03:01,840 Speaker 2: that given where inflation is and the relative strength in 59 00:03:01,880 --> 00:03:03,800 Speaker 2: the labor market and what the Reserve Bank is hearing 60 00:03:03,800 --> 00:03:06,320 Speaker 2: when talking to businesses. There doesn't seem to be anything 61 00:03:06,360 --> 00:03:08,840 Speaker 2: in the market that's going to allow the bank to 62 00:03:08,960 --> 00:03:11,600 Speaker 2: lower interest rates. Michelle Bullet was actually born and bred 63 00:03:11,639 --> 00:03:13,840 Speaker 2: in Armadale. She was ducks and captain of a local 64 00:03:13,919 --> 00:03:16,680 Speaker 2: high school with the university there. Spoke in front of 65 00:03:16,680 --> 00:03:17,880 Speaker 2: a bunch of friends yesterday. 66 00:03:18,200 --> 00:03:21,600 Speaker 1: Yeah, indeed. Storing Number three. Bit of good news for renters. 67 00:03:21,680 --> 00:03:24,919 Speaker 1: The monthly pace of rental growth has slowed to its 68 00:03:24,960 --> 00:03:26,320 Speaker 1: lowest in four years. 69 00:03:26,760 --> 00:03:29,520 Speaker 2: National rents rose just zero point one percent during July, 70 00:03:29,600 --> 00:03:31,959 Speaker 2: which is in stark contrast to the forty percent surgeon 71 00:03:32,000 --> 00:03:34,920 Speaker 2: rents over the past five years. The medium dollar amount 72 00:03:35,040 --> 00:03:37,160 Speaker 2: increase over the five years is about one hundred and 73 00:03:37,160 --> 00:03:40,600 Speaker 2: eighty dollars per week. Call Logic Australia economist Caitlin Ezzi 74 00:03:40,960 --> 00:03:44,440 Speaker 2: said there's a broad rolling trend across the country, even 75 00:03:44,480 --> 00:03:48,520 Speaker 2: though results are different across cities. Rents rows zero point 76 00:03:48,520 --> 00:03:50,760 Speaker 2: six percent in Adelaie, zero point three percent in Melbourne 77 00:03:50,800 --> 00:03:53,240 Speaker 2: and Perth, Flatten, Darwin and Canberra, but they actually fell 78 00:03:53,280 --> 00:03:55,200 Speaker 2: in Sydney, Brisbane and Hobart. 79 00:03:55,440 --> 00:03:58,360 Speaker 1: Story number four plenty going on among the retailers, with 80 00:03:58,560 --> 00:04:03,000 Speaker 1: significant discounting at Meyer's Fashion brand and lower spending across 81 00:04:03,000 --> 00:04:05,160 Speaker 1: its department stores weighing on its profits. 82 00:04:05,320 --> 00:04:08,560 Speaker 2: Sales were down almost three percent last financial year, the 83 00:04:08,600 --> 00:04:11,880 Speaker 2: company warned ahead of its official result next week. Maya 84 00:04:11,920 --> 00:04:14,080 Speaker 2: said sales have been affected by the closure of its 85 00:04:14,080 --> 00:04:17,440 Speaker 2: Brisbane City and Frankston stores, as well as restraint among 86 00:04:17,480 --> 00:04:20,600 Speaker 2: customers who are paying higher mortgages. According to report and 87 00:04:20,600 --> 00:04:22,600 Speaker 2: the finn Review, jairs in the company film more than 88 00:04:22,600 --> 00:04:26,120 Speaker 2: six percent yesterday. Meanwhile, Mosaic Brands, which operates Miller's cadies 89 00:04:26,160 --> 00:04:29,680 Speaker 2: Andy b this week brought in Deloitte to help refinance 90 00:04:29,720 --> 00:04:32,440 Speaker 2: and restructure the business after a pretty tough period where 91 00:04:32,440 --> 00:04:36,159 Speaker 2: sales have slumped. In South Africa's Woolly's Holding or Woolworth's Holding, 92 00:04:36,400 --> 00:04:38,840 Speaker 2: has engaged Boston Consoling Group to advise on how to 93 00:04:38,880 --> 00:04:41,640 Speaker 2: cut millions of dollars from its country road business. Plenty 94 00:04:41,640 --> 00:04:43,159 Speaker 2: of pain in retail land. 95 00:04:43,560 --> 00:04:46,800 Speaker 1: Indeed, there is last one story number five. NASA is 96 00:04:46,839 --> 00:04:52,400 Speaker 1: considering asking Elon Musk's SpaceX to shuttle two astronauts back 97 00:04:52,400 --> 00:04:55,120 Speaker 1: to Earth from the International Space Station following a few 98 00:04:55,120 --> 00:04:58,120 Speaker 1: technical difficulties with the spacecraft that they took to get there. 99 00:04:58,520 --> 00:05:01,640 Speaker 2: Astronauts Sanita Williams and Barry Wilmore, who was supposed to 100 00:05:01,680 --> 00:05:04,520 Speaker 2: return to nearly two months ago, may now stay at 101 00:05:04,560 --> 00:05:08,040 Speaker 2: the station until February. According to Report and Financial Times, 102 00:05:08,320 --> 00:05:10,719 Speaker 2: SpaceX had a mission to the space station planned for 103 00:05:10,800 --> 00:05:14,080 Speaker 2: later this month to deliver crew and supplies, but the 104 00:05:14,200 --> 00:05:17,200 Speaker 2: US Space Agency has now pushed it back until September 105 00:05:17,240 --> 00:05:19,800 Speaker 2: to weigh up whether it should bring the asterouts home. 106 00:05:20,040 --> 00:05:23,080 Speaker 2: The SpaceX mission may carry only two astronauts aboard instead 107 00:05:23,080 --> 00:05:26,159 Speaker 2: of four, that it'd leave two seats for Wilmore and 108 00:05:26,200 --> 00:05:28,000 Speaker 2: Williams to come home early next year. 109 00:05:28,279 --> 00:05:30,360 Speaker 1: All right, there we go, the top five business stories 110 00:05:30,360 --> 00:05:31,000 Speaker 1: in five minutes. 111 00:05:31,040 --> 00:05:32,720 Speaker 2: Thank you Sean, Thank you Michael. 112 00:05:32,880 --> 00:05:35,560 Speaker 1: It is Friday, the ninth of August twenty twenty four. 113 00:05:35,680 --> 00:05:38,320 Speaker 1: Remember to hit follow on the podcast, and if five 114 00:05:38,360 --> 00:05:40,679 Speaker 1: minutes isn't enough, you can find our longer daily show 115 00:05:40,720 --> 00:05:43,640 Speaker 1: called Fear and Greed wherever you listen to podcasts. I'm 116 00:05:43,680 --> 00:05:45,920 Speaker 1: Michael Thompson and that was the fast five business news 117 00:05:45,920 --> 00:05:47,640 Speaker 1: by Fear and Greed. Have a great day.