1 00:00:03,930 --> 00:00:07,619 Michael Thompson: It's Wednesday, the 22nd of September, 2021. Welcome to Fear 2 00:00:07,620 --> 00:00:10,070 Michael Thompson: and Greed, the business podcast that sets you up for 3 00:00:10,070 --> 00:00:13,500 Michael Thompson: a successful day. I'm Michael Thompson, and good morning, Sean Aylmer. 4 00:00:13,870 --> 00:00:14,500 Sean Aylmer: Hi, Michael. 5 00:00:14,770 --> 00:00:17,619 Michael Thompson: Melbourne comes to a standstill as a result of construction 6 00:00:17,620 --> 00:00:21,470 Michael Thompson: workers and anti-vaxx protestors marching through the streets, while Sydney's 7 00:00:21,470 --> 00:00:23,620 Michael Thompson: builders can head back to work on Monday. That's our 8 00:00:23,620 --> 00:00:27,170 Michael Thompson: main story. There's plenty more around. The share market claws 9 00:00:27,170 --> 00:00:31,040 Michael Thompson: back some gains after Monday's absolute pummeling. The federal government 10 00:00:31,040 --> 00:00:34,920 Michael Thompson: pushes to vaccinate under- 12s, and ANZ's boss is worried 11 00:00:34,960 --> 00:00:39,390 Michael Thompson: about cyber attacks on small business. Plus, stay listening for 12 00:00:39,390 --> 00:00:43,330 Michael Thompson: a chat about investing in overseas property. But first, to 13 00:00:43,330 --> 00:00:46,729 Michael Thompson: our top story. There were some pretty disturbing scenes in 14 00:00:46,729 --> 00:00:50,390 Michael Thompson: Melbourne yesterday. A lot of protestors, a lot of police flares. 15 00:00:50,450 --> 00:00:53,850 Michael Thompson: A really ugly scene. The protest shut down part of 16 00:00:53,850 --> 00:00:56,790 Michael Thompson: the city, from the CBD to the West Gate Freeway. 17 00:00:57,010 --> 00:00:59,330 Sean Aylmer: That's right, Michael. It didn't look good at all. It 18 00:00:59,330 --> 00:01:01,550 Sean Aylmer: really all started a couple of weeks ago, with the 19 00:01:01,550 --> 00:01:05,810 Sean Aylmer: decision to only allow limited numbers of construction workers on 20 00:01:05,810 --> 00:01:08,990 Sean Aylmer: site. Then on Monday, there was a violent protest outside 21 00:01:08,990 --> 00:01:12,470 Sean Aylmer: the CFMEU headquarters. That's the main union, of course. The 22 00:01:12,480 --> 00:01:15,680 Sean Aylmer: marchers claimed that the union itself didn't do enough to 23 00:01:15,680 --> 00:01:18,869 Sean Aylmer: stop the mandating of vaccines on work sites that had 24 00:01:18,870 --> 00:01:21,370 Sean Aylmer: come in late last week. Now, keep in mind that 25 00:01:21,370 --> 00:01:24,339 Sean Aylmer: more than 400 cases in Victoria are linked to the 26 00:01:24,340 --> 00:01:27,569 Sean Aylmer: construction industry, so that's why that mandate came in. Then 27 00:01:27,569 --> 00:01:30,899 Sean Aylmer: on Monday night, Victorian Premier Daniel Andrews shut down the 28 00:01:30,910 --> 00:01:34,149 Sean Aylmer: sector. Clearly, he'd had enough. He certainly lost the support 29 00:01:34,190 --> 00:01:37,300 Sean Aylmer: of the construction workers. And yesterday, it was a combination 30 00:01:37,300 --> 00:01:41,420 Sean Aylmer: of construction workers and anti- vaxxers confronting the police. They closed 31 00:01:41,420 --> 00:01:44,470 Sean Aylmer: down the city. The ACTU, which is the peak body 32 00:01:44,470 --> 00:01:46,830 Sean Aylmer: for unions, of course, was frantically saying that it was 33 00:01:46,830 --> 00:01:50,690 Sean Aylmer: the anti- vaxxers and far- right- wing groups that hijacked 34 00:01:50,690 --> 00:01:53,360 Sean Aylmer: the March. Certainly, it wasn't a good look, and certainly, 35 00:01:53,360 --> 00:01:56,680 Sean Aylmer: there were construction workers amidst it. In contrast of all 36 00:01:56,680 --> 00:01:59,480 Sean Aylmer: this, the New South Wales government yesterday said it was 37 00:01:59,480 --> 00:02:03,360 Sean Aylmer: about to lift its 50% limit on construction sites in 38 00:02:03,360 --> 00:02:06,280 Sean Aylmer: Greater Sydney. So that means if you work in construction 39 00:02:06,280 --> 00:02:09,250 Sean Aylmer: and you are vaccinated, you can go back to work 40 00:02:09,250 --> 00:02:11,030 Sean Aylmer: pretty much as normal, from next Monday. 41 00:02:11,590 --> 00:02:13,610 Michael Thompson: I suppose the question that you have to ask after 42 00:02:13,610 --> 00:02:16,600 Michael Thompson: this kind of thing is: Have the protestors actually achieved anything? 43 00:02:17,139 --> 00:02:20,529 Sean Aylmer: Not that I can tell, at least publicly, and maybe 44 00:02:20,530 --> 00:02:24,240 Sean Aylmer: the publicity is what they wanted. But given by far, 45 00:02:24,240 --> 00:02:27,989 Sean Aylmer: the majority of the population is pro- vaccination, I don't 46 00:02:27,990 --> 00:02:31,010 Sean Aylmer: think the protests are actually going to win much public 47 00:02:31,010 --> 00:02:34,480 Sean Aylmer: sympathy. Protest marches haven't been a thing in Australia for 48 00:02:34,480 --> 00:02:37,250 Sean Aylmer: decades, and I just don't think anyone really wants them 49 00:02:37,250 --> 00:02:38,100 Sean Aylmer: to re- emerge. 50 00:02:38,650 --> 00:02:41,520 Michael Thompson: Why do we care so much about construction? And I 51 00:02:41,520 --> 00:02:44,030 Michael Thompson: don't mean that to sound so flippant. It's more about 52 00:02:44,030 --> 00:02:48,490 Michael Thompson: why does the government often make different rules specifically for 53 00:02:48,490 --> 00:02:49,100 Michael Thompson: that sector? 54 00:02:49,560 --> 00:02:52,540 Sean Aylmer: In many ways, the construction sector is the most important 55 00:02:52,540 --> 00:02:56,639 Sean Aylmer: sector in the economy. First, it's a big employer. It's 56 00:02:56,639 --> 00:03:00,420 Sean Aylmer: actually the number- three employer. Only healthcare and retail employ 57 00:03:00,450 --> 00:03:03,630 Sean Aylmer: more people. And it accounts for about 9% of all 58 00:03:03,630 --> 00:03:06,570 Sean Aylmer: workers. But what it does that the other two don't 59 00:03:06,570 --> 00:03:09,310 Sean Aylmer: do so much is it has huge flow- on effects 60 00:03:09,310 --> 00:03:11,419 Sean Aylmer: to the rest of the economy. So when people build 61 00:03:11,419 --> 00:03:14,740 Sean Aylmer: a house, it's the same deal with retail or industrial 62 00:03:14,740 --> 00:03:17,570 Sean Aylmer: space. They need to fit it out. So a house 63 00:03:17,570 --> 00:03:20,880 Sean Aylmer: might cost 250, 000, but the owners can spend half it 64 00:03:20,880 --> 00:03:24,300 Sean Aylmer: again on landscaping, on whitegoods, on homewares. So the flow- 65 00:03:24,300 --> 00:03:27,870 Sean Aylmer: on effect in the construction sector, particularly around residential housing, 66 00:03:28,169 --> 00:03:31,429 Sean Aylmer: is enormous. That's why it often gets special consideration. 67 00:03:31,560 --> 00:03:33,820 Michael Thompson: Okay, so it's a big employer, but it goes a 68 00:03:33,820 --> 00:03:36,210 Michael Thompson: lot further than that. Let's just hope we don't see 69 00:03:36,210 --> 00:03:39,160 Michael Thompson: a repeat, then, of yesterday, today. On to the markets 70 00:03:39,160 --> 00:03:41,410 Michael Thompson: now. What's happened over the last 24 hours? 71 00:03:41,660 --> 00:03:45,580 Sean Aylmer: It's been a much quieter 24 hours than Monday. Overnight, 72 00:03:45,580 --> 00:03:48,780 Sean Aylmer: Wall Street traded ahead of the two- day Federal Reserve meeting. 73 00:03:49,000 --> 00:03:51,580 Sean Aylmer: That's scheduled to kick off later this morning, Australian time, 74 00:03:51,580 --> 00:03:53,520 Sean Aylmer: and we won't know too much about that for another 75 00:03:53,520 --> 00:03:56,480 Sean Aylmer: 48 hours. In the early afternoon, trading in the three key 76 00:03:56,480 --> 00:03:59,550 Sean Aylmer: indices on Wall Street ( that's the S&P 500, the Dow Jones 77 00:03:59,550 --> 00:04:03,500 Sean Aylmer: Industrial Average, and the NASDAQ) were all higher. European markets 78 00:04:03,500 --> 00:04:06,840 Sean Aylmer: were also higher. They bounced back, as well. Locally, yesterday 79 00:04:06,840 --> 00:04:09,300 Sean Aylmer: proved to be a pretty good session. The S& P 80 00:04:09,300 --> 00:04:16,330 Sean Aylmer: A6200 finished up 0. 4% to 7, 274 points, clawing back 81 00:04:16,330 --> 00:04:19,039 Sean Aylmer: some of the falls from the previous day. Now, 10 82 00:04:19,040 --> 00:04:22,730 Sean Aylmer: of the 11 sub- indices were positive, with only the 83 00:04:22,730 --> 00:04:26,140 Sean Aylmer: financial index falling. Energy and technology stocks did best. 84 00:04:26,410 --> 00:04:28,290 Michael Thompson: Yeah, much better day. We'll be back in a moment 85 00:04:28,480 --> 00:04:35,900 Michael Thompson: with the rest of the day's business news. Sean, plenty 86 00:04:35,900 --> 00:04:39,029 Michael Thompson: of stories around this morning. What's the latest COVID news? 87 00:04:39,400 --> 00:04:42,070 Sean Aylmer: Well, the news in New South Wales continues to improve. There were a little over 1, 88 00:04:42,460 --> 00:04:47,020 Sean Aylmer: 000 cases yesterday. Tragically, 10 deaths. That's where the news 89 00:04:47,020 --> 00:04:49,830 Sean Aylmer: has been really dreadful in that state, over the last 90 00:04:49,830 --> 00:04:52,360 Sean Aylmer: week or so, the number of deaths. In other news 91 00:04:52,380 --> 00:04:55,380 Sean Aylmer: from New South Wales, local government areas in the north 92 00:04:55,380 --> 00:04:57,820 Sean Aylmer: of the state, near the Queensland border, will go into 93 00:04:57,820 --> 00:05:00,839 Sean Aylmer: a seven- day lockdown from tonight. The state is on 94 00:05:00,839 --> 00:05:04,460 Sean Aylmer: track to hit 70% full vaccination rate on October 9, 95 00:05:04,630 --> 00:05:07,310 Sean Aylmer: so that would mean some reopening of the state from 96 00:05:07,310 --> 00:05:10,100 Sean Aylmer: the 11th of October. The one thing I liked yesterday there, 97 00:05:10,279 --> 00:05:13,140 Sean Aylmer: Michael, in the middle of the school holidays, the New 98 00:05:13,140 --> 00:05:16,330 Sean Aylmer: South Wales state government said they would allow three children 99 00:05:16,580 --> 00:05:19,080 Sean Aylmer: to gather in a home, as long as the parents 100 00:05:19,080 --> 00:05:22,610 Sean Aylmer: of the child from that home are vaccinated. I'm really 101 00:05:22,610 --> 00:05:23,480 Sean Aylmer: happy about that one. 102 00:05:23,700 --> 00:05:24,839 Michael Thompson: Yeah, popular move, that one. 103 00:05:25,000 --> 00:05:29,190 Sean Aylmer: Definitely. In Victoria, there are 603 cases, and the ACT recorded 104 00:05:29,210 --> 00:05:30,440 Sean Aylmer: 16 new cases. 105 00:05:30,710 --> 00:05:32,919 Michael Thompson: Now, I noticed on Monday night, that the US Food 106 00:05:32,920 --> 00:05:36,910 Michael Thompson: and Drug Administration okayed the Pfizer vaccine for five to 11- year- 107 00:05:36,910 --> 00:05:38,440 Michael Thompson: olds. What's that mean for us here? 108 00:05:38,760 --> 00:05:43,130 Sean Aylmer: Yeah, it's really interesting. Yesterday, Health Minister Greg Hunt urged 109 00:05:43,150 --> 00:05:46,690 Sean Aylmer: Pfizer to seek approval for its vaccine for kids as 110 00:05:46,690 --> 00:05:48,730 Sean Aylmer: young as five. That would follow the lead of the 111 00:05:48,730 --> 00:05:51,920 Sean Aylmer: US FDA. Currently, you need to be 12 years or 112 00:05:51,920 --> 00:05:54,930 Sean Aylmer: older to receive the Pfizer vaccine, but as you said, 113 00:05:54,930 --> 00:05:56,930 Sean Aylmer: it got the okay in the US, and it would 114 00:05:56,930 --> 00:06:00,380 Sean Aylmer: be great if it was suitable for younger children. The 115 00:06:00,380 --> 00:06:04,040 Sean Aylmer: dosage is actually lesser than in adults, but if it 116 00:06:04,040 --> 00:06:06,130 Sean Aylmer: is suitable, hopefully, that can roll out, too. 117 00:06:06,470 --> 00:06:09,779 Michael Thompson: Yeah, absolutely. Now, the fallout from the big submarine announcement 118 00:06:09,779 --> 00:06:12,060 Michael Thompson: last week is continuing, and we'll talk about that in a 119 00:06:12,060 --> 00:06:15,870 Michael Thompson: second. But first, did you cringe when you watched Joe 120 00:06:15,870 --> 00:06:19,420 Michael Thompson: Biden forget Scott Morrison's name? I do have a little 121 00:06:19,600 --> 00:06:21,850 Michael Thompson: bit of sympathy for Joe Biden. I am terrible with 122 00:06:21,850 --> 00:06:24,719 Michael Thompson: names. I'm terrible with faces. But then again, I'm not 123 00:06:24,720 --> 00:06:27,300 Michael Thompson: the US president holding a press conference with two other 124 00:06:27,300 --> 00:06:27,880 Michael Thompson: world leaders. 125 00:06:28,310 --> 00:06:30,480 Sean Aylmer: I still cringe when I think about it. I don't know 126 00:06:30,480 --> 00:06:32,920 Sean Aylmer: who to feel worse for. I mean, Joe Biden for 127 00:06:32,920 --> 00:06:36,830 Sean Aylmer: forgetting, but he must meet hundreds of people a day. 128 00:06:38,080 --> 00:06:42,210 Sean Aylmer: Or Scott Morrison for not looking too goofy. Incredible. I mean, 129 00:06:42,210 --> 00:06:44,780 Sean Aylmer: it was a great photo opportunity for our prime minister, 130 00:06:45,160 --> 00:06:49,010 Sean Aylmer: notwithstanding the gaffe. And certainly, it's needed, because the fallout 131 00:06:49,010 --> 00:06:53,850 Sean Aylmer: from Australia's decision to dump France's $ 90- billion conventional submarine 132 00:06:53,850 --> 00:06:56,860 Sean Aylmer: deal last week and replace it with an $ 80 billion 133 00:06:57,170 --> 00:07:00,610 Sean Aylmer: nuclear sub deal with the US and UK continues to 134 00:07:00,610 --> 00:07:04,360 Sean Aylmer: reverberate. The French are furious, and the European Union is 135 00:07:04,360 --> 00:07:08,479 Sean Aylmer: listening to Paris. The European Union and Australia are set 136 00:07:08,480 --> 00:07:12,530 Sean Aylmer: to recommence free trade talks as from next month. These 137 00:07:12,540 --> 00:07:15,900 Sean Aylmer: talks have been going on for three years, but the French European 138 00:07:15,900 --> 00:07:19,250 Sean Aylmer: Secretary yesterday said keeping one's word was a condition of 139 00:07:19,250 --> 00:07:23,280 Sean Aylmer: trust between democracies and allies, and he's not keen on 140 00:07:23,280 --> 00:07:24,320 Sean Aylmer: the talks continuing. 141 00:07:24,650 --> 00:07:26,660 Michael Thompson: Now, I mentioned at the top of the show, the 142 00:07:26,660 --> 00:07:29,119 Michael Thompson: boss of ANZ, Shayne Elliott, had a bit to say 143 00:07:29,120 --> 00:07:32,730 Michael Thompson: about the preparedness of small businesses, when it comes to cybersecurity. 144 00:07:33,330 --> 00:07:35,500 Sean Aylmer: He called it a massive issue, and it is. He 145 00:07:35,500 --> 00:07:38,970 Sean Aylmer: said small and medium- sized businesses were at higher risk 146 00:07:39,230 --> 00:07:44,020 Sean Aylmer: than ever before. In fact, he said their preparedness was woeful. 147 00:07:44,530 --> 00:07:47,790 Sean Aylmer: Cyber security is one of the big issues of the 148 00:07:47,790 --> 00:07:52,230 Sean Aylmer: next 10, 20, 30 years. Phishing is still the main concern, 149 00:07:52,390 --> 00:07:56,810 Sean Aylmer: so about 90% of cyber attacks still occur because people open 150 00:07:56,810 --> 00:07:58,840 Sean Aylmer: work emails that they shouldn't. 151 00:07:59,170 --> 00:08:02,420 Michael Thompson: Yeah, and some of those emails are actually becoming really convincing, 152 00:08:02,420 --> 00:08:05,780 Michael Thompson: and they actually look quite genuine. And the other thing 153 00:08:05,780 --> 00:08:08,990 Michael Thompson: in this, then, is ransomware becoming a bigger issue. And 154 00:08:08,990 --> 00:08:11,850 Michael Thompson: Nine Entertainment was nearly closed down earlier in the year, 155 00:08:11,850 --> 00:08:15,690 Michael Thompson: and we're probably just fortunate that they were able to shift news bulletins 156 00:08:15,690 --> 00:08:19,630 Michael Thompson: and programs around the country and continue to operate. JBS 157 00:08:19,630 --> 00:08:23,520 Michael Thompson: Meats was hit. Toll Holdings, also, last year. It's a 158 00:08:23,520 --> 00:08:26,450 Michael Thompson: big issue; it just keeps getting bigger. Now, the big 159 00:08:26,450 --> 00:08:30,660 Michael Thompson: corporate takeover this week is Canada's Brookfield Asset Management bidding $ 160 00:08:30,660 --> 00:08:35,370 Michael Thompson: 9.6 billion for energy group AusNet Services. But a bit 161 00:08:35,370 --> 00:08:38,090 Michael Thompson: of drama: An Australian company has made a counter-bid. 162 00:08:38,809 --> 00:08:42,650 Sean Aylmer: It sure has. Pipeline Group APA, it's come over the 163 00:08:42,660 --> 00:08:47,760 Sean Aylmer: top with a $ 9. 9 billion bid. Now, Brookfield bid $ 164 00:08:47,760 --> 00:08:52,979 Sean Aylmer: 9.6 billion on Monday, and it has been granted exclusive 165 00:08:53,050 --> 00:08:56,250 Sean Aylmer: due diligence on AusNet. So that means they get to 166 00:08:56,250 --> 00:08:59,140 Sean Aylmer: look at the books exclusively for the next eight weeks, 167 00:08:59,570 --> 00:09:02,610 Sean Aylmer: but it will be impossible for the board to ignore 168 00:09:02,800 --> 00:09:05,320 Sean Aylmer: the higher bid. Now, there was a bit of criticism around 169 00:09:05,320 --> 00:09:08,640 Sean Aylmer: yesterday, that it did grant due diligence. The board of 170 00:09:08,640 --> 00:09:12,250 Sean Aylmer: AusNet said that they had been through a process, and 171 00:09:12,250 --> 00:09:14,900 Sean Aylmer: it's not the first time they'd heard from APA, and they 172 00:09:14,900 --> 00:09:17,510 Sean Aylmer: thought they had made the right decision at granting that 173 00:09:17,510 --> 00:09:20,559 Sean Aylmer: exclusive due diligence. But there's a fair bit to play 174 00:09:20,559 --> 00:09:23,330 Sean Aylmer: out in this one. Now, APA's share price ended down 175 00:09:23,330 --> 00:09:28,130 Sean Aylmer: nearly 5% yesterday, as a result, but AusNet Services, it 176 00:09:28,130 --> 00:09:31,939 Sean Aylmer: was up 10% yesterday. It jumped 20% on Monday. There 177 00:09:31,940 --> 00:09:35,130 Sean Aylmer: is nothing like price tension to push up a share price. 178 00:09:35,660 --> 00:09:39,700 Michael Thompson: Now, Sean, I know ... Well, I suspect I know what 179 00:09:39,700 --> 00:09:43,540 Michael Thompson: you were doing yesterday: poring over the minutes of the 180 00:09:43,540 --> 00:09:46,980 Michael Thompson: Reserve Bank board meeting from two weeks ago. Did they 181 00:09:46,980 --> 00:09:48,510 Michael Thompson: show us anything that we didn't know? 182 00:09:48,510 --> 00:09:53,380 Sean Aylmer: Hmm. I'm not Stephen Koukoulas, number one. He definitely would 183 00:09:53,380 --> 00:09:56,660 Sean Aylmer: have been poring over them. I must say, I read 184 00:09:56,660 --> 00:09:58,030 Sean Aylmer: them, and then I thought, " Oh, I don't think there's 185 00:09:58,030 --> 00:10:00,520 Sean Aylmer: anything new in that." They showed that the Central Bank 186 00:10:00,530 --> 00:10:02,660 Sean Aylmer: is committed to keeping interest rates low; we sort of 187 00:10:02,660 --> 00:10:06,650 Sean Aylmer: knew that. They also, again, reiterated that interest rates are 188 00:10:06,650 --> 00:10:10,410 Sean Aylmer: on hold until 2024, based on the Reserve Bank's forecast. 189 00:10:11,050 --> 00:10:13,730 Sean Aylmer: Clearly, that's great news for anyone with a mortgage. The 190 00:10:13,730 --> 00:10:16,750 Sean Aylmer: economy will go back at this quarter, due to lockdowns, but 191 00:10:16,750 --> 00:10:18,960 Sean Aylmer: it will then pick up. So there wasn't a lot 192 00:10:18,960 --> 00:10:23,040 Sean Aylmer: new there. It is interesting, just how confident the Central 193 00:10:23,040 --> 00:10:27,210 Sean Aylmer: Bank is about the economy returning to growth, once we 194 00:10:27,210 --> 00:10:30,900 Sean Aylmer: get through this lockdown period in the ACT, New South Wales, 195 00:10:31,059 --> 00:10:31,810 Sean Aylmer: and Victoria. 196 00:10:36,770 --> 00:10:39,930 Michael Thompson: So Sean, what's making headlines elsewhere in the media this morning? 197 00:10:40,290 --> 00:10:43,439 Sean Aylmer: There's a really interesting story in The Australian. According to 198 00:10:43,440 --> 00:10:48,470 Sean Aylmer: the OECD, extra savings, worth $ 230 billion, with a B ... $ 199 00:10:48,610 --> 00:10:52,270 Sean Aylmer: 230 billion will be sitting in bank accounts by the 200 00:10:52,270 --> 00:10:54,780 Sean Aylmer: end of the year, across Australia. And that will be 201 00:10:54,780 --> 00:10:57,540 Sean Aylmer: used to fund a robust economic rebound. Now, when its 202 00:10:57,640 --> 00:11:01,630 Sean Aylmer: economic outlook was released overnight, the OECD cut its forecast for 203 00:11:01,630 --> 00:11:05,160 Sean Aylmer: Australian growth from 5. 1%. That's what it had predicted 204 00:11:05,160 --> 00:11:08,840 Sean Aylmer: back in May. To 4% for this year. That's the biggest 205 00:11:08,840 --> 00:11:11,380 Sean Aylmer: drop for a developed nation it's made. 206 00:11:11,870 --> 00:11:13,830 Michael Thompson: Yeah, well that seems roughly in line, then, with what 207 00:11:13,830 --> 00:11:16,309 Michael Thompson: Gareth Aird from The Commonwealth Bank told us last week, 208 00:11:16,309 --> 00:11:19,090 Michael Thompson: about the amount of money sitting in Commonwealth Bank customers' 209 00:11:19,090 --> 00:11:22,800 Michael Thompson: bank accounts. About $10, 000, I think, more now than before 210 00:11:22,800 --> 00:11:23,439 Michael Thompson: the pandemic. 211 00:11:23,580 --> 00:11:25,270 Sean Aylmer: Yeah, it all does seem to match up. 212 00:11:25,720 --> 00:11:28,500 Michael Thompson: Yeah. Now, let's run through some of the other stories around today. 213 00:11:28,500 --> 00:11:32,450 Michael Thompson: The Roy Morgan Weekly Gauge of Consumer Sentiment rose slightly 214 00:11:32,450 --> 00:11:34,770 Michael Thompson: from last week, although it's still well below its long- 215 00:11:34,770 --> 00:11:37,380 Michael Thompson: term average. Last week, there was a drop in COVID 216 00:11:37,380 --> 00:11:39,610 Michael Thompson: cases in New South Wales, but there was also a 217 00:11:39,610 --> 00:11:40,280 Michael Thompson: fall in employment. 218 00:11:40,770 --> 00:11:42,860 Sean Aylmer: That's true, Michael, and the news didn't get any better for 219 00:11:42,870 --> 00:11:46,280 Sean Aylmer: iron ore companies yesterday, with prices down again. Now, we 220 00:11:46,280 --> 00:11:49,650 Sean Aylmer: know China wants to reduce steel output to lower carbon 221 00:11:49,650 --> 00:11:53,090 Sean Aylmer: emissions, and yesterday, there were some iron ore analysts around 222 00:11:53,090 --> 00:11:56,209 Sean Aylmer: the place saying that the reductions would stay in place 223 00:11:56,210 --> 00:11:59,250 Sean Aylmer: until after next year's Winter Olympics. The reason is that 224 00:11:59,250 --> 00:12:03,020 Sean Aylmer: Beijing wants clean air, at least until the Winter Olympics. 225 00:12:03,210 --> 00:12:06,350 Sean Aylmer: So who would've thought the Winter Olympics could harm BHP? 226 00:12:06,679 --> 00:12:09,150 Michael Thompson: It's not a connection that I would have made easily, 227 00:12:09,150 --> 00:12:10,650 Michael Thompson: so thank you for making it for me. 228 00:12:11,130 --> 00:12:11,260 Sean Aylmer: You're welcome. 229 00:12:11,679 --> 00:12:14,980 Michael Thompson: Now, Katmandu's underlying profit more than doubled in the 12 months 230 00:12:14,980 --> 00:12:17,770 Michael Thompson: to July, but things are tough again under lockdowns. 231 00:12:18,080 --> 00:12:20,210 Sean Aylmer: I love Katmandu. It just makes me feel young. It 232 00:12:20,210 --> 00:12:22,170 Sean Aylmer: makes me feel I can climb mountains and walk the 233 00:12:22,170 --> 00:12:26,250 Sean Aylmer: Inca Trail, when well, Michael, I probably can't. Anyway, I'm 234 00:12:26,250 --> 00:12:27,439 Sean Aylmer: not going to say any more about that. 235 00:12:27,620 --> 00:12:30,080 Michael Thompson: You're sounding, Sean, like the kind of person that buys 236 00:12:30,080 --> 00:12:33,020 Michael Thompson: a four- wheel- drive to only drive in the city. 237 00:12:33,020 --> 00:12:35,160 Michael Thompson: Or better yet, a dual cab ute when they're not 238 00:12:35,160 --> 00:12:35,650 Michael Thompson: a tradie. 239 00:12:36,020 --> 00:12:36,990 Sean Aylmer: And what's wrong with that? 240 00:12:37,480 --> 00:12:40,710 Michael Thompson: Nothing. Nothing at all. Now, what's the key overseas news 241 00:12:40,710 --> 00:12:41,190 Michael Thompson: this morning? 242 00:12:41,520 --> 00:12:44,360 Sean Aylmer: Well, Canadian Prime Minister Justin Trudeau has won a third 243 00:12:44,360 --> 00:12:47,990 Sean Aylmer: term, but still, it's a minority government. He went to 244 00:12:47,990 --> 00:12:50,740 Sean Aylmer: the polls hoping to win a majority, but he didn't 245 00:12:50,740 --> 00:12:53,469 Sean Aylmer: get there. Now, Mr. Trudeau is a big spender, very 246 00:12:53,470 --> 00:12:55,949 Sean Aylmer: keen on environmental change, so we can expect more of 247 00:12:55,950 --> 00:12:58,089 Sean Aylmer: it. The other big global story, at the moment, of 248 00:12:58,090 --> 00:13:02,100 Sean Aylmer: course, is Evergrande. That's the Chinese property giant with $ 300 249 00:13:02,280 --> 00:13:06,490 Sean Aylmer: billion in liabilities. It's due to pay bondholders tomorrow, and 250 00:13:06,490 --> 00:13:09,580 Sean Aylmer: it might default, which could trigger a collapse in the 251 00:13:09,580 --> 00:13:13,350 Sean Aylmer: Chinese real estate market. That's bad, not just for China, 252 00:13:13,760 --> 00:13:16,250 Sean Aylmer: but the global economy. And it does explain a lot 253 00:13:16,250 --> 00:13:18,179 Sean Aylmer: of the choppiness in financial markets at the moment. 254 00:13:18,179 --> 00:13:21,340 Michael Thompson: Yeah, a big story, and we'll be keeping a very close 255 00:13:21,340 --> 00:13:23,860 Michael Thompson: eye on that one. Now, up next is the daily 256 00:13:23,860 --> 00:13:27,160 Michael Thompson: interview, and today, you're talking to Chris Beddingfield from Key 257 00:13:27,160 --> 00:13:29,880 Michael Thompson: Global Investors about investing in real estate. 258 00:13:30,340 --> 00:13:32,809 Sean Aylmer: That's right, Mike, but it goes well beyond buying an 259 00:13:32,809 --> 00:13:35,240 Sean Aylmer: apartment and putting a tenant in it. We're looking at 260 00:13:35,240 --> 00:13:38,809 Sean Aylmer: everything from office towers to industrial buildings right around the 261 00:13:38,809 --> 00:13:42,630 Sean Aylmer: world. We talk about retail, as well as residential. Really 262 00:13:42,630 --> 00:13:43,329 Sean Aylmer: interesting chat. 263 00:13:43,530 --> 00:13:45,559 Michael Thompson: Yeah, good one. That's up next in the Fear and 264 00:13:45,559 --> 00:13:50,469 Michael Thompson: Greed playlist on your podcast platform, or at fearandgreed.com.au. Thank you, Sean. 265 00:13:50,870 --> 00:13:51,530 Sean Aylmer: Thank you, Michael. 266 00:13:51,960 --> 00:13:55,050 Michael Thompson: It's Wednesday, the 22nd of September. Make sure you follow 267 00:13:55,059 --> 00:13:58,020 Michael Thompson: Fear and Greed on LinkedIn, Twitter, and Facebook. And while 268 00:13:58,020 --> 00:14:00,079 Michael Thompson: you're online, why not leave us a review and give 269 00:14:00,080 --> 00:14:03,240 Michael Thompson: us five stars on Apple podcast, Spotify, or wherever you're 270 00:14:03,240 --> 00:14:05,850 Michael Thompson: listening? I'm Michael Thompson, and that was Fear and Greed. 271 00:14:06,100 --> 00:14:06,829 Michael Thompson: Have a great day.