1 00:00:09,360 --> 00:00:12,239 Speaker 1: Get ready for a big jump in insurance premiums in 2 00:00:12,320 --> 00:00:16,439 Speaker 1: part due to leaky pipes. Gaza and the CFMU dominate 3 00:00:16,480 --> 00:00:19,800 Speaker 1: Parliament and would you pay to attend a friend's wedding? 4 00:00:20,000 --> 00:00:22,520 Speaker 1: Welcome to Fear and Greed. Daily business news for people 5 00:00:22,520 --> 00:00:25,320 Speaker 1: who make their own decisions. It is Tuesday, the twentieth 6 00:00:25,320 --> 00:00:28,360 Speaker 1: of August twenty twenty four. Are Michael Thompson and Good Morning, 7 00:00:28,400 --> 00:00:29,080 Speaker 1: Sean Aylmer. 8 00:00:29,560 --> 00:00:31,520 Speaker 2: Good morning, Michael, Sean. 9 00:00:31,560 --> 00:00:34,239 Speaker 1: The main story this morning. Insurance premiums are set to 10 00:00:34,360 --> 00:00:38,400 Speaker 1: rise this financial year, in large part because aging water 11 00:00:38,520 --> 00:00:42,239 Speaker 1: pipes across the country are doing greater damage to houses. 12 00:00:42,920 --> 00:00:46,279 Speaker 2: Yes A sun Court, which owns brands Amy and Gio 13 00:00:46,400 --> 00:00:50,279 Speaker 2: among others, yesterday said general insurance premiums will rise by 14 00:00:50,360 --> 00:00:54,560 Speaker 2: mid to high single digit amounts, and it's the housing 15 00:00:54,760 --> 00:00:57,880 Speaker 2: sector that's causing the rises. In terms of water pipes, 16 00:00:57,920 --> 00:01:01,040 Speaker 2: it's because people now have more bathrooms and fridges that 17 00:01:01,080 --> 00:01:05,160 Speaker 2: dispense ice and chilled water. Also, lower quality piping used 18 00:01:05,200 --> 00:01:08,080 Speaker 2: in construction is hurting, as is the fact that homes 19 00:01:08,080 --> 00:01:10,960 Speaker 2: nowadays are more likely to be open planned, so a 20 00:01:11,040 --> 00:01:14,440 Speaker 2: leak in the kitchen quickly flows through to other rooms. 21 00:01:14,760 --> 00:01:17,319 Speaker 2: Apart from aging water pipes. Houses are now being built 22 00:01:17,319 --> 00:01:21,199 Speaker 2: closer together, meaning damage in one house is more likely 23 00:01:21,319 --> 00:01:23,959 Speaker 2: to result in damage in the neighbors. Households are also 24 00:01:24,000 --> 00:01:27,120 Speaker 2: more likely to own lithium batteries, upping the fire risk. 25 00:01:27,440 --> 00:01:29,959 Speaker 2: Now there is some good news, Michael. The smash repair 26 00:01:30,000 --> 00:01:33,320 Speaker 2: industries bringing on new workers via immigration and apprenticeships, and 27 00:01:33,400 --> 00:01:38,240 Speaker 2: building material costs are plateauing. Those two factors are alleviating 28 00:01:38,400 --> 00:01:41,440 Speaker 2: some of the costs of insurance. But the bottom line 29 00:01:41,480 --> 00:01:44,880 Speaker 2: is premiums are set to rise again even after the 30 00:01:44,959 --> 00:01:48,240 Speaker 2: last financial year sixteen percent increase in motor vehicle premiums 31 00:01:48,520 --> 00:01:50,600 Speaker 2: and ten percent jump in home insurance. 32 00:01:51,240 --> 00:01:55,440 Speaker 1: That's fascinating. Water pipes, lithium batteries. There just there's such 33 00:01:55,560 --> 00:01:58,200 Speaker 1: kind of tangible things that are actually having a meaningful 34 00:01:58,360 --> 00:01:59,960 Speaker 1: impact on premiums. 35 00:02:00,240 --> 00:02:03,760 Speaker 2: Yeah. So we renovated last year and we bought a fridge. 36 00:02:04,240 --> 00:02:05,960 Speaker 2: Very proud of the fact that you can hit ice 37 00:02:06,320 --> 00:02:08,600 Speaker 2: or chilled water from the fridge. 38 00:02:08,800 --> 00:02:10,280 Speaker 1: It's a sign that you've made at sean. 39 00:02:10,360 --> 00:02:13,720 Speaker 2: Yeah, Yeah, totally didn't think much about the plumbing issues. 40 00:02:14,320 --> 00:02:16,040 Speaker 2: Just think is fascinating when you look at all these 41 00:02:16,480 --> 00:02:19,600 Speaker 2: insurance premiums and why they're rising and the houses being 42 00:02:19,600 --> 00:02:22,840 Speaker 2: built closer together, so a problem one house hits another house, 43 00:02:22,880 --> 00:02:25,040 Speaker 2: and things that you never really think about otherwise. 44 00:02:25,360 --> 00:02:29,480 Speaker 1: Yeah, who said insurance was boring? Does this all mean, then, Sean, 45 00:02:29,520 --> 00:02:31,040 Speaker 1: that insurers are making more money? 46 00:02:31,200 --> 00:02:33,600 Speaker 2: Well, it's call. At least is making more money after 47 00:02:33,639 --> 00:02:36,640 Speaker 2: three tough years. Its net profit rose by twelve percent 48 00:02:36,680 --> 00:02:39,240 Speaker 2: to one point two billion dollars last financial year, and 49 00:02:39,480 --> 00:02:42,840 Speaker 2: it up its dividend sharply. Helping the bottom line was 50 00:02:42,880 --> 00:02:46,880 Speaker 2: fewer natural disasters, falling inflation unless pressure on the global 51 00:02:46,919 --> 00:02:51,000 Speaker 2: reinsurance premiums. But some corps second half cash earnings missed 52 00:02:51,080 --> 00:02:55,160 Speaker 2: expectations and initially the group's share price fell. Ultimately, it 53 00:02:55,240 --> 00:02:57,720 Speaker 2: finished the day up one point four percent. CEO Steve 54 00:02:57,800 --> 00:03:01,320 Speaker 2: Johnson said that over the past five years, Suncorp has 55 00:03:01,360 --> 00:03:05,720 Speaker 2: responded to around seven hundred thousand claims costing more than 56 00:03:05,800 --> 00:03:10,040 Speaker 2: nine billion dollars, pretty incredible. Over the twenty twenty four 57 00:03:10,080 --> 00:03:13,639 Speaker 2: financial year, it managed a dozen separate weather events, particularly 58 00:03:13,960 --> 00:03:17,200 Speaker 2: in Queensland in late twenty twenty three, but overall its 59 00:03:17,200 --> 00:03:20,400 Speaker 2: claims were below its allowance. Hence it had a pretty 60 00:03:20,400 --> 00:03:21,000 Speaker 2: good year. 61 00:03:21,400 --> 00:03:24,200 Speaker 1: All right, Sean, local markets, how do they perform yesterday? 62 00:03:24,480 --> 00:03:27,000 Speaker 2: There's in PASX two hundred closed up just a touch 63 00:03:27,080 --> 00:03:31,160 Speaker 2: zero point one percent to seven nine hundred and eighty points. Broadly, 64 00:03:31,160 --> 00:03:34,840 Speaker 2: the utility stocks did best, consumer staples worst. Among the 65 00:03:34,920 --> 00:03:37,400 Speaker 2: large caps, big banks were all higher, miners were lower. 66 00:03:37,520 --> 00:03:41,400 Speaker 2: Weistet Global, James Harding Goodman also were under performers. Aria 67 00:03:41,640 --> 00:03:44,400 Speaker 2: was one of the best. The ASEX is totally dominated 68 00:03:44,440 --> 00:03:47,880 Speaker 2: by profit results at the moment, just very quickly, will 69 00:03:48,000 --> 00:03:50,840 Speaker 2: run through a few before we get into details on 70 00:03:50,880 --> 00:03:53,320 Speaker 2: some of the others a bit later. Property and investor 71 00:03:53,360 --> 00:03:56,240 Speaker 2: and fund manager GPT Group posted a two percent full 72 00:03:56,360 --> 00:04:00,560 Speaker 2: in its half year earnings. Its statutory net loss, though 73 00:04:00,600 --> 00:04:03,360 Speaker 2: it was two hundred and fifty million dollars, mostly due 74 00:04:03,360 --> 00:04:07,040 Speaker 2: to revaluations of its investment property book. We're seeing that 75 00:04:07,080 --> 00:04:09,760 Speaker 2: across the property sector at the moment, just like we 76 00:04:09,800 --> 00:04:13,960 Speaker 2: did the last half year. Bathroom and plumbing products company 77 00:04:14,000 --> 00:04:17,200 Speaker 2: Rese Group. It's listed. Most of us would know Reese 78 00:04:17,320 --> 00:04:20,400 Speaker 2: because of the name on your toilet, though not necessarily 79 00:04:20,440 --> 00:04:22,440 Speaker 2: because you invest in it, because it's actually held by 80 00:04:22,440 --> 00:04:24,960 Speaker 2: the Reese fam or the family that owns the Rees Group, 81 00:04:25,240 --> 00:04:28,600 Speaker 2: so it's not traded a lot anyway. It's share price 82 00:04:28,600 --> 00:04:32,520 Speaker 2: fell four percent, despite lifting full unit profit by eight percent. Basically, 83 00:04:32,560 --> 00:04:36,880 Speaker 2: renovators are trimming back spending. Audio and video software group 84 00:04:37,040 --> 00:04:40,120 Speaker 2: Ordinate reported its half year results. It's share price jumped 85 00:04:40,200 --> 00:04:42,719 Speaker 2: twenty one percent, best of the top two hundred yesterday. 86 00:04:42,920 --> 00:04:45,920 Speaker 2: Financial software provider Iris dropped even after announcing that it 87 00:04:45,960 --> 00:04:49,480 Speaker 2: would reinstate dividends following a fifty percent plus jump in 88 00:04:49,560 --> 00:04:53,320 Speaker 2: earnings and a thirty seven million dollar revenue hole from 89 00:04:53,320 --> 00:04:56,720 Speaker 2: the loss of a contract with Vicinity shopping Centers. Hit 90 00:04:56,800 --> 00:05:00,400 Speaker 2: revenue at outdoor advertising company oh Media as it ported 91 00:05:00,440 --> 00:05:02,400 Speaker 2: an eleven percent drop in earnings. 92 00:05:02,839 --> 00:05:05,159 Speaker 1: And What's happening in international markets. 93 00:05:04,960 --> 00:05:07,320 Speaker 2: Oil declined for the fourth time in five sessions as 94 00:05:07,360 --> 00:05:10,520 Speaker 2: traders attracked at US led efforts to secure a ceasefire 95 00:05:10,520 --> 00:05:13,520 Speaker 2: in the Middle East conflict. Adding to the crude market's 96 00:05:13,640 --> 00:05:17,440 Speaker 2: recent bearish tone, have been further signs of softness in China. 97 00:05:17,560 --> 00:05:21,120 Speaker 2: The top oil importer, Iron Oil, continues it's downward trend, 98 00:05:21,120 --> 00:05:24,120 Speaker 2: with Singapore futures training around ninety seven US dollars a ton. 99 00:05:24,560 --> 00:05:25,880 Speaker 2: At the beginning of the year, it was more than 100 00:05:25,880 --> 00:05:29,080 Speaker 2: one hundred and forty US dollars a ton. Over the weekend, 101 00:05:29,120 --> 00:05:31,640 Speaker 2: Federal Treasure Jim Chalmers said that the lower iron ore 102 00:05:31,680 --> 00:05:34,520 Speaker 2: prices would hit the budget bottom line by up to 103 00:05:34,520 --> 00:05:37,880 Speaker 2: three billion dollars. Gold continues its push through twenty five 104 00:05:37,960 --> 00:05:40,520 Speaker 2: hundred US dollars an ounce, and the OSI dollars buying 105 00:05:40,600 --> 00:05:42,400 Speaker 2: just under sixty seven US cents. 106 00:05:43,080 --> 00:05:45,080 Speaker 1: Sean, A very good time to mention our interview that 107 00:05:45,120 --> 00:05:47,200 Speaker 1: we have coming up after the show. You're speaking with 108 00:05:47,279 --> 00:05:48,960 Speaker 1: vervek Da from the Commonwealth Bank. 109 00:05:49,480 --> 00:05:52,080 Speaker 2: Yeah. In fact, we talked to him about three of 110 00:05:52,080 --> 00:05:56,240 Speaker 2: those commodities. I mentioned oil, gold, and iron ore and 111 00:05:56,279 --> 00:06:00,200 Speaker 2: why their prices are doing what they're doing. Very very 112 00:06:00,279 --> 00:06:05,040 Speaker 2: knowledgeable chap and also able to explain it in plain English. 113 00:06:05,080 --> 00:06:06,599 Speaker 2: So definitely we're worth listen. 114 00:06:07,160 --> 00:06:09,800 Speaker 1: Yeah, the thing about whenever we have vek on, the 115 00:06:09,839 --> 00:06:12,320 Speaker 1: interview will go for about twelve minutes. You will learn 116 00:06:12,360 --> 00:06:15,280 Speaker 1: more in that twelve minutes than you will in any 117 00:06:15,320 --> 00:06:18,080 Speaker 1: other twelve minute period in your week. He just he 118 00:06:18,160 --> 00:06:21,159 Speaker 1: has so much information and he just conveys it so clearly. 119 00:06:21,200 --> 00:06:24,159 Speaker 1: I would very much recommend sticking around for that one. 120 00:06:24,200 --> 00:06:28,160 Speaker 1: It's coming up after the show. Also, Sean, perhaps not 121 00:06:28,279 --> 00:06:30,960 Speaker 1: quite of the same level of information. 122 00:06:31,839 --> 00:06:34,919 Speaker 2: Yes, care for what you say here, Yes, yes. 123 00:06:34,880 --> 00:06:39,960 Speaker 1: Close to at midday today, the next bonus episode of 124 00:06:40,160 --> 00:06:42,760 Speaker 1: Ask Fear and Greed comes out, and that's the podcast 125 00:06:42,760 --> 00:06:46,880 Speaker 1: where listeners send in their questions for you and you 126 00:06:47,000 --> 00:06:49,360 Speaker 1: answer them. And so that's why I say that, yes, 127 00:06:49,400 --> 00:06:53,200 Speaker 1: there is information conveyed. Is it quite at a vecta level, 128 00:06:54,080 --> 00:06:57,440 Speaker 1: maybe not, but it's at a solid Sean ale My level. 129 00:06:57,520 --> 00:07:00,679 Speaker 2: That's right, very solid. Today it's all about exchange funds 130 00:07:01,000 --> 00:07:02,640 Speaker 2: in the influence they have on markets. 131 00:07:03,360 --> 00:07:05,440 Speaker 1: Yeah, it's a really good question that we've got coming 132 00:07:05,440 --> 00:07:07,600 Speaker 1: through today. So if you have your own, feel free 133 00:07:07,640 --> 00:07:09,320 Speaker 1: to send it on through, go to the website Fear 134 00:07:09,320 --> 00:07:12,119 Speaker 1: Andgreed dot com dot au or do it via social media. 135 00:07:12,200 --> 00:07:13,720 Speaker 1: Sean will be back in a moment with the rest 136 00:07:13,720 --> 00:07:23,120 Speaker 1: of the day's business news Sean. Parliament is sitting in 137 00:07:23,120 --> 00:07:26,640 Speaker 1: Canberra this week and the debate over Gaza is capturing 138 00:07:26,680 --> 00:07:28,840 Speaker 1: the headlines and really dominating question time. 139 00:07:29,160 --> 00:07:32,080 Speaker 2: Sure is Prime Minister Anthony Alberinezi accused the Coalition of 140 00:07:32,160 --> 00:07:36,400 Speaker 2: hypocrisy after it attacked Labor for failing to provide appropriate 141 00:07:36,440 --> 00:07:41,320 Speaker 2: security vetting for Palestinian refugees fleeing war torn Gaza coming 142 00:07:41,320 --> 00:07:44,520 Speaker 2: to Australia. The vast majority of the thirteen hundred arrivals 143 00:07:44,520 --> 00:07:49,280 Speaker 2: from Gaza have been granted visitor visas rather than refugee visas, 144 00:07:49,640 --> 00:07:52,360 Speaker 2: meaning they're subject to a different level of security vetting, 145 00:07:52,600 --> 00:07:55,080 Speaker 2: with some approved in less than twenty four hours. During 146 00:07:55,120 --> 00:07:57,920 Speaker 2: Question of time, Missterra Albernezi said the Coalition had similarly 147 00:07:57,960 --> 00:08:01,640 Speaker 2: granted visitor visas to arrival from Gaza and Hamas, a 148 00:08:01,720 --> 00:08:06,600 Speaker 2: listed terrorist organization, controlled the enclave. In response, Opposition leader 149 00:08:06,600 --> 00:08:10,480 Speaker 2: Peter Dunn continued his call for people leaving war torn 150 00:08:10,680 --> 00:08:14,960 Speaker 2: Gaza to be blocked from arriving in Australia until security 151 00:08:15,000 --> 00:08:20,240 Speaker 2: vetting processes were tightened elsewhere. Every state and territory construction 152 00:08:20,360 --> 00:08:24,160 Speaker 2: division of this CFMEU will soon be in administration after 153 00:08:24,160 --> 00:08:28,040 Speaker 2: the government and opposition reached a deal yesterday afternoon that 154 00:08:28,160 --> 00:08:31,680 Speaker 2: guarantees a passage of legislation through both houses this week 155 00:08:31,760 --> 00:08:34,520 Speaker 2: that will enable that and Prime in Estra Anthony Albernez. 156 00:08:34,559 --> 00:08:37,280 Speaker 2: He said the government is working to get gambling reforms 157 00:08:37,520 --> 00:08:42,080 Speaker 2: right amid pressure from labor MPs to implement a full 158 00:08:42,120 --> 00:08:44,439 Speaker 2: ban on online gambling advertising. 159 00:08:44,840 --> 00:08:48,240 Speaker 1: It's a bit going on in politics. West Pac Sean 160 00:08:48,360 --> 00:08:51,080 Speaker 1: yesterday said it's June quarter profit came in flat at 161 00:08:51,080 --> 00:08:54,320 Speaker 1: one point eight billion dollars, and so the very competitive 162 00:08:54,360 --> 00:08:56,120 Speaker 1: mortgage wars have started to cool. 163 00:08:56,840 --> 00:08:59,440 Speaker 2: That's good news for the lenders, and Westpac's share price 164 00:08:59,480 --> 00:09:02,840 Speaker 2: jumped more than than two percent yesterday. Chief executive Peter 165 00:09:02,920 --> 00:09:06,200 Speaker 2: Kings that operating momentum was positive with decent growth in 166 00:09:06,280 --> 00:09:08,920 Speaker 2: deposits and loans, but higher interest rates and cost of 167 00:09:08,960 --> 00:09:12,720 Speaker 2: living pressures are taking their toll on customers, with the 168 00:09:12,800 --> 00:09:16,040 Speaker 2: delinquent loans rising to one point four to two percent 169 00:09:16,400 --> 00:09:19,120 Speaker 2: from one point three to six percent during the quarter. Now, 170 00:09:19,200 --> 00:09:24,160 Speaker 2: Westpac's net interest margin, effectively the bank's profit margin rose slightly, 171 00:09:24,280 --> 00:09:26,679 Speaker 2: demonstrating that some of the heat has come out of 172 00:09:26,720 --> 00:09:30,040 Speaker 2: those mortgage wars. The fact that the net interest margin 173 00:09:30,400 --> 00:09:33,800 Speaker 2: expanded is probably the key reason why Westpac's share price 174 00:09:33,840 --> 00:09:35,160 Speaker 2: outperformed the others yesterday. 175 00:09:35,800 --> 00:09:39,000 Speaker 1: Now, this one was interesting. Sean Am Pohl will cut 176 00:09:39,080 --> 00:09:42,360 Speaker 1: back on the pace of its electric vehicle charger rollout 177 00:09:42,440 --> 00:09:45,920 Speaker 1: as EV sales slow. It's also facing challenges in its 178 00:09:45,920 --> 00:09:48,280 Speaker 1: core aviation and heavy transport markets. 179 00:09:48,600 --> 00:09:51,439 Speaker 2: The fuel refiner and retailer announced ay twenty nine percent 180 00:09:51,480 --> 00:09:53,520 Speaker 2: drop in net profit for the six months to the 181 00:09:53,559 --> 00:09:56,360 Speaker 2: end of June and cut its dividend, sending its share 182 00:09:56,360 --> 00:09:59,600 Speaker 2: price down four and a half percent yesterday. Chief executive 183 00:09:59,640 --> 00:10:03,040 Speaker 2: Matt set a challenge with rolling out new EV chargers 184 00:10:03,480 --> 00:10:06,840 Speaker 2: is actually getting them connected to local distribution networks, as 185 00:10:06,840 --> 00:10:10,120 Speaker 2: well as the fact that sales of EDS has slowed. 186 00:10:10,520 --> 00:10:13,040 Speaker 2: More than two thirds of vm poles fuel sales are 187 00:10:13,120 --> 00:10:15,960 Speaker 2: to aviation and heavy transport operators, and the shift to 188 00:10:16,080 --> 00:10:20,240 Speaker 2: sustainable fuels is challenging for the group. Mister Halliday praised 189 00:10:20,320 --> 00:10:23,320 Speaker 2: the result in tough economic conditions, saying the resilience of 190 00:10:23,480 --> 00:10:27,319 Speaker 2: mpole's local retail elearnings was particularly pleasing and had helped 191 00:10:27,360 --> 00:10:31,280 Speaker 2: offset setbacks at its litten refinery in Brisbane and softer 192 00:10:31,400 --> 00:10:32,400 Speaker 2: international sales. 193 00:10:33,400 --> 00:10:37,240 Speaker 1: Federal Police have been called in Sean to investigate where 194 00:10:37,240 --> 00:10:42,079 Speaker 1: the Regional Express's former chairman and major investor and legally 195 00:10:42,240 --> 00:10:47,559 Speaker 1: recorded the company's final board meeting amid increasingly bitter recriminations 196 00:10:47,600 --> 00:10:49,960 Speaker 1: over the airline's collapse late last month. 197 00:10:50,000 --> 00:10:52,720 Speaker 2: Show and this story just keeps on going, sure does. 198 00:10:52,800 --> 00:10:55,520 Speaker 2: The Australian Federal Police confirmed it had received a report 199 00:10:55,600 --> 00:10:59,200 Speaker 2: of a potential crime last week. According to report in 200 00:10:59,240 --> 00:11:02,040 Speaker 2: the Financial of You, People close to the airline said 201 00:11:02,080 --> 00:11:05,679 Speaker 2: the company's chair John Sharp had spoken to investigators. The 202 00:11:05,760 --> 00:11:09,400 Speaker 2: report to the AFP alleged that lim kim Hi, who 203 00:11:09,600 --> 00:11:13,800 Speaker 2: was deposed as Rex's chair earlier this year, and controlled 204 00:11:13,800 --> 00:11:16,400 Speaker 2: more than fifty percent of the register until administrators that 205 00:11:16,520 --> 00:11:19,080 Speaker 2: EY were called in at the end of last month. 206 00:11:19,760 --> 00:11:23,800 Speaker 2: The allegation is that he illegally recorded the final board meeting. Now. 207 00:11:23,800 --> 00:11:26,960 Speaker 2: Those claims come amid a series falling out between mister 208 00:11:27,000 --> 00:11:30,360 Speaker 2: Limb and other directors, including mister Sharp. Mister Limb was 209 00:11:30,360 --> 00:11:34,160 Speaker 2: removed as executive chair with little explanation in June. He 210 00:11:34,240 --> 00:11:36,760 Speaker 2: later made a push to dump the company's entire board. 211 00:11:37,080 --> 00:11:38,479 Speaker 2: It then went into administration. 212 00:11:38,800 --> 00:11:42,400 Speaker 1: Now this has emerged, lend Lease has fallen to a 213 00:11:42,600 --> 00:11:45,800 Speaker 1: one point five billion dollar annual loss after taking heavy 214 00:11:45,880 --> 00:11:49,920 Speaker 1: right downs on its offshore operations, though it insists that 215 00:11:50,040 --> 00:11:52,320 Speaker 1: its turnaround plan is on track. 216 00:11:52,480 --> 00:11:56,480 Speaker 2: Sean Yes, I reckon len Lee's is in the eye 217 00:11:56,720 --> 00:11:59,680 Speaker 2: of the Maelstrom at the moment, the property developer says 218 00:11:59,679 --> 00:12:01,319 Speaker 2: it is on track to sell Do you like it? 219 00:12:01,920 --> 00:12:05,520 Speaker 1: It's just very, very kind of evocaty oh, you are 220 00:12:05,600 --> 00:12:06,160 Speaker 1: a poet. 221 00:12:06,280 --> 00:12:10,400 Speaker 2: Today the property developer says it's on track to sell 222 00:12:10,440 --> 00:12:13,760 Speaker 2: off the bulk of its international development and building businesses 223 00:12:14,120 --> 00:12:16,200 Speaker 2: in return about four and a half billion dollars of 224 00:12:16,240 --> 00:12:19,720 Speaker 2: capital to Australia Now. It dumped its global ambitions in 225 00:12:19,760 --> 00:12:24,040 Speaker 2: May following pressure from activist investors. Chief executive Tony Lombardo 226 00:12:24,160 --> 00:12:27,200 Speaker 2: yesterday said the company was simplifying its business and the 227 00:12:27,240 --> 00:12:31,120 Speaker 2: results reflect challenging business conditions and the early actions from 228 00:12:31,120 --> 00:12:34,480 Speaker 2: its refreshed strategy. He said the group's priorities are strengthening 229 00:12:34,480 --> 00:12:37,800 Speaker 2: its balance sheet, returning capital to shareholders, investing in its 230 00:12:37,880 --> 00:12:41,560 Speaker 2: local operations, and growing its international investments platform. Then lease 231 00:12:41,559 --> 00:12:44,760 Speaker 2: It's core operating profit after tax rose by two percent 232 00:12:44,800 --> 00:12:47,160 Speaker 2: for the year end of June thirty. The one and 233 00:12:47,160 --> 00:12:50,160 Speaker 2: a half billion dollar net loss included one point four 234 00:12:50,200 --> 00:12:53,680 Speaker 2: billion dollars of impairments and charges on business it's selling off. 235 00:12:54,080 --> 00:12:56,760 Speaker 2: There was also a five hundred and thirteen million dollar 236 00:12:56,880 --> 00:13:01,000 Speaker 2: right off of goodwill, primarily related to its acquisition more 237 00:13:01,040 --> 00:13:05,560 Speaker 2: than twenty years ago of British building firm Bobs Construction, 238 00:13:06,000 --> 00:13:07,679 Speaker 2: which is now being prepared for sale. 239 00:13:08,280 --> 00:13:11,400 Speaker 1: A question without notice, Sean, and I am always afraid 240 00:13:11,440 --> 00:13:14,680 Speaker 1: asking these because I feel like I may expose my 241 00:13:14,760 --> 00:13:17,520 Speaker 1: own ignorance. What does that mean? A right off of 242 00:13:17,600 --> 00:13:20,160 Speaker 1: goodwill if that was an acquisition that was so long ago, 243 00:13:21,600 --> 00:13:24,559 Speaker 1: explain please, Yeah. 244 00:13:24,720 --> 00:13:27,760 Speaker 2: So it's a good question because goodwill as an asset 245 00:13:27,800 --> 00:13:31,760 Speaker 2: and an intangible asset they call it, it isn't depreciated 246 00:13:32,160 --> 00:13:35,960 Speaker 2: as such. And so when they bought Bovs, I have 247 00:13:36,040 --> 00:13:38,559 Speaker 2: no idea how much they paid, but let's use simple figures. 248 00:13:38,960 --> 00:13:41,560 Speaker 2: Maybe its book was worth you know, had fifty dollars 249 00:13:41,600 --> 00:13:44,000 Speaker 2: worth of stuff, and they thought the name and the 250 00:13:44,000 --> 00:13:46,000 Speaker 2: good will was worth another fifty dollars, so they paid 251 00:13:46,040 --> 00:13:49,440 Speaker 2: one hundred dollars for let's say something like that. You 252 00:13:49,480 --> 00:13:52,400 Speaker 2: can't adnetize goodwill. Now we've got to the point where 253 00:13:52,400 --> 00:13:55,040 Speaker 2: the business hasn't worked on its balance sheet. It's got 254 00:13:55,080 --> 00:13:59,440 Speaker 2: that fifty dollars of goodwill sitting there saying, hey, Bovs 255 00:14:00,040 --> 00:14:03,920 Speaker 2: on Len Lisa's balance sheet is worth x amount, which 256 00:14:03,960 --> 00:14:07,280 Speaker 2: includes the fifty bucks of goodwill. That's no longer the case, 257 00:14:07,320 --> 00:14:08,480 Speaker 2: so they have to write it off. 258 00:14:10,080 --> 00:14:12,040 Speaker 1: Look, and that is just a taste of what she 259 00:14:12,120 --> 00:14:15,160 Speaker 1: will get today on ask fear and greed at midday. 260 00:14:15,200 --> 00:14:17,720 Speaker 1: And that was spontaneous, sure, and that was without any planning. 261 00:14:17,760 --> 00:14:20,320 Speaker 1: So you entered that one very well. I feel smarter 262 00:14:21,480 --> 00:14:23,920 Speaker 1: team Australia. Thank you for answering that. By the way, 263 00:14:23,920 --> 00:14:26,840 Speaker 1: Team Australia, which includes the big iron ore producers and 264 00:14:26,880 --> 00:14:30,680 Speaker 1: steel makers, are being hammered by enormous levels of steel 265 00:14:30,840 --> 00:14:33,600 Speaker 1: being sold by Chinese steel mills into the Asian region. 266 00:14:33,840 --> 00:14:36,360 Speaker 1: This is according to Bluescope boss Mark Vasella. 267 00:14:37,280 --> 00:14:41,120 Speaker 2: Yeah so. Bluescope's Australia's largest steel maker, and mister Fassela 268 00:14:41,280 --> 00:14:44,280 Speaker 2: said steel margins had been more than halved thanks to 269 00:14:44,320 --> 00:14:47,280 Speaker 2: the actions of Chinese makers. He said it will hurt 270 00:14:47,280 --> 00:14:50,680 Speaker 2: companies like BHP and Rio Tinto and isn't a great 271 00:14:50,720 --> 00:14:54,640 Speaker 2: outcome for Team Australia. Of course, it's definitely not a 272 00:14:54,680 --> 00:14:57,880 Speaker 2: great outcome for Bluescope. He was speaking after announcing a 273 00:14:57,920 --> 00:15:00,320 Speaker 2: twenty percent drop in net profit on the back of 274 00:15:00,360 --> 00:15:03,000 Speaker 2: a six percent de client in revenue. The collapse in 275 00:15:03,080 --> 00:15:07,360 Speaker 2: steel margins, combined with a housing construction slow down in Australia, 276 00:15:07,560 --> 00:15:10,600 Speaker 2: prompted the company to forecast much weaker earnings for the 277 00:15:10,640 --> 00:15:15,320 Speaker 2: first half of this financial year. Bluescope's share price fill 278 00:15:15,360 --> 00:15:16,920 Speaker 2: more than three percent a. 279 00:15:17,000 --> 00:15:20,840 Speaker 1: Two milk company share price tumbled nineteen percent yesterday, even 280 00:15:20,880 --> 00:15:22,840 Speaker 1: after it said it had won a bigger share of 281 00:15:22,840 --> 00:15:25,640 Speaker 1: the lucrative Chinese infant formula market. 282 00:15:26,360 --> 00:15:29,280 Speaker 2: A two increased earnings for the last financial year by 283 00:15:29,280 --> 00:15:32,160 Speaker 2: nearly eight percent, but it was below expectations, triggering the 284 00:15:32,240 --> 00:15:35,640 Speaker 2: sell off. Not helping was a disappointing outlook from the group. 285 00:15:35,880 --> 00:15:39,200 Speaker 2: The infant formula company, which also sells milk, warned that 286 00:15:39,240 --> 00:15:43,840 Speaker 2: the Chinese markets facing increased competition and challenging macroeconomic conditions. 287 00:15:44,040 --> 00:15:47,080 Speaker 2: Chief executive David borce Lucy said that while China still 288 00:15:47,160 --> 00:15:50,040 Speaker 2: has forty percent of the world's infant market despite the 289 00:15:50,040 --> 00:15:53,080 Speaker 2: falling burst rate, A two is looking to expand elsewhere 290 00:15:53,120 --> 00:15:56,000 Speaker 2: and become more relevant to families over their life cycle, 291 00:15:56,120 --> 00:15:59,280 Speaker 2: nominating the US and Middle East as attractive options. 292 00:16:00,000 --> 00:16:02,960 Speaker 1: Okay, turning to international news now in China's coast guard 293 00:16:03,440 --> 00:16:08,400 Speaker 1: said a Philippines vessel that had ignored repeated warnings deliberately 294 00:16:08,480 --> 00:16:11,840 Speaker 1: collided with a Chinese vessel in a quote unprofessional and 295 00:16:12,000 --> 00:16:13,160 Speaker 1: dangerous manner. 296 00:16:13,400 --> 00:16:17,040 Speaker 2: Which of course raises the question can you collide with 297 00:16:17,080 --> 00:16:20,640 Speaker 2: another vessel in a professional, a non dangerous manner? 298 00:16:21,600 --> 00:16:24,400 Speaker 1: I don't think you actually can. That's a very good point. 299 00:16:24,400 --> 00:16:27,320 Speaker 2: Yes, because the unprofessional and dangerous is actually a quote, 300 00:16:27,520 --> 00:16:31,760 Speaker 2: so two Philippines Coastguard vessels and a quote again illegally 301 00:16:31,920 --> 00:16:36,120 Speaker 2: intruded end quote into waters adjacent to Sabina's Shoal without 302 00:16:36,120 --> 00:16:40,080 Speaker 2: permission in the early hours of yesterday. According to the 303 00:16:40,160 --> 00:16:44,240 Speaker 2: Chinese Coast Guard, a spokesperson garn You went on to 304 00:16:44,280 --> 00:16:48,320 Speaker 2: say that the Philippines has repeatedly provoked and caused trouble, 305 00:16:48,560 --> 00:16:52,840 Speaker 2: violated the temporary arrangements between China and the Philippines. China's 306 00:16:52,840 --> 00:16:56,120 Speaker 2: Coast Guards said it took control measures against the Philippine ships, 307 00:16:56,280 --> 00:16:59,200 Speaker 2: whatever that means. They said it was in accordance with 308 00:16:59,240 --> 00:17:02,960 Speaker 2: the law and warned the Philippines to immediately stop infringement 309 00:17:03,360 --> 00:17:07,960 Speaker 2: in provocation or bear all consequences. According to report on 310 00:17:08,119 --> 00:17:11,359 Speaker 2: Reuter's China and the Philippines that reached a provisional agreement 311 00:17:11,600 --> 00:17:16,200 Speaker 2: last month after repeated altercations near the Second Thomas Shoal. 312 00:17:16,680 --> 00:17:19,120 Speaker 2: Doesn't look like they've lasted for too long. 313 00:17:19,640 --> 00:17:22,600 Speaker 1: Finally, Sean this, well, this last story feels like it 314 00:17:22,640 --> 00:17:24,880 Speaker 1: would be more at home in our sister podcast. How 315 00:17:24,880 --> 00:17:26,719 Speaker 1: do they afford that? Because that's all about kind of 316 00:17:26,840 --> 00:17:31,000 Speaker 1: saving money. This is a new money saving trend coming 317 00:17:31,040 --> 00:17:33,080 Speaker 1: out of the US I just don't know whether it's 318 00:17:33,119 --> 00:17:36,720 Speaker 1: going to catch on charging your wedding guests to attend 319 00:17:36,760 --> 00:17:39,640 Speaker 1: your nuptials. What on earth is going on. 320 00:17:40,119 --> 00:17:42,280 Speaker 2: You'd really find out who your friends are, wouldn't you. 321 00:17:43,880 --> 00:17:46,720 Speaker 2: According to a study by the wedding planning website or Not, 322 00:17:47,200 --> 00:17:50,600 Speaker 2: the average cost of a wedding ceremony and reception in 323 00:17:50,680 --> 00:17:54,600 Speaker 2: twenty twenty three was thirty five thousand US dollars. This 324 00:17:54,680 --> 00:17:56,920 Speaker 2: is in the US, of course, an increase of five 325 00:17:56,960 --> 00:17:59,639 Speaker 2: thousand dollars from the year before. Now they're not surveyed 326 00:17:59,640 --> 00:18:02,639 Speaker 2: about ten thousand couples who had married, According to a 327 00:18:02,680 --> 00:18:05,359 Speaker 2: story in the New York Times, Also, the cost of 328 00:18:05,400 --> 00:18:09,080 Speaker 2: being a guest, even before being asked to pay up, 329 00:18:09,280 --> 00:18:11,600 Speaker 2: is also rising, So the average cost of attending a 330 00:18:11,600 --> 00:18:14,879 Speaker 2: wedding is now about five hundred and eighty dollars, up 331 00:18:14,920 --> 00:18:18,840 Speaker 2: one hundred and twenty dollars from two years earlier. So 332 00:18:19,600 --> 00:18:23,760 Speaker 2: the trend is to start sending out a bill with 333 00:18:23,960 --> 00:18:29,040 Speaker 2: the invite. There is a slight problem. People don't want 334 00:18:29,040 --> 00:18:31,600 Speaker 2: to pay, and often. 335 00:18:31,359 --> 00:18:32,440 Speaker 1: Say that's a problem. 336 00:18:32,680 --> 00:18:35,159 Speaker 2: They prefer not to attend. So it really got going 337 00:18:35,600 --> 00:18:38,679 Speaker 2: about a month ago. New York City couple sparked a 338 00:18:38,760 --> 00:18:42,159 Speaker 2: viral debate over the idea. They invited three hundred and 339 00:18:42,240 --> 00:18:46,280 Speaker 2: fifty people to attend their twelve hour wedding was in 340 00:18:46,320 --> 00:18:48,560 Speaker 2: New York City. There was a bunch of places that 341 00:18:48,560 --> 00:18:52,400 Speaker 2: they were visiting throughout the day. They're charging their guests. 342 00:18:52,920 --> 00:18:58,280 Speaker 2: Of the three hundred and fifty people, sixty attended, but 343 00:18:58,880 --> 00:19:01,040 Speaker 2: they are all now social media start. 344 00:19:02,200 --> 00:19:06,439 Speaker 1: Oh, would you would you attend if someone I mean, 345 00:19:06,840 --> 00:19:08,840 Speaker 1: I think this one were they charging something like four 346 00:19:08,880 --> 00:19:10,719 Speaker 1: hundred and fifty dollars to attend? 347 00:19:10,720 --> 00:19:12,879 Speaker 2: I think I can't quote. Yeah, it was. 348 00:19:13,119 --> 00:19:14,879 Speaker 1: It was somewhere in that range. So if it was 349 00:19:15,160 --> 00:19:18,040 Speaker 1: if it was a you and Jackie heading along to 350 00:19:18,160 --> 00:19:21,240 Speaker 1: this wedding, would you pay nine hundred dollars? And that's 351 00:19:21,280 --> 00:19:24,399 Speaker 1: just to actually attend the kind of the ceremony and 352 00:19:24,440 --> 00:19:27,360 Speaker 1: the reception. If you have to travel somewhere, if you've 353 00:19:27,359 --> 00:19:29,439 Speaker 1: got to fly there and accommodation and all of that, 354 00:19:29,440 --> 00:19:32,120 Speaker 1: that's all extra. Would you do it? I'm trying, I'm 355 00:19:32,160 --> 00:19:33,680 Speaker 1: leading you one particular way here. 356 00:19:33,680 --> 00:19:35,960 Speaker 2: Sure not a chance I might do it? 357 00:19:35,960 --> 00:19:40,440 Speaker 1: From a family, Yeah, yeah, but chance it's your family, 358 00:19:40,480 --> 00:19:42,920 Speaker 1: You'll be paying for the wedding anyway, though, that's right. 359 00:19:43,200 --> 00:19:43,840 Speaker 2: That's so true. 360 00:19:44,200 --> 00:19:46,520 Speaker 1: You'll be the ones, you'll be the one charging other people. Now, 361 00:19:46,560 --> 00:19:50,240 Speaker 1: I would never do it. I just I just don't know. No, no, no, no, 362 00:19:50,240 --> 00:19:53,160 Speaker 1: no no. I think it's ridiculous though, I will raise 363 00:19:53,240 --> 00:19:55,320 Speaker 1: it on how do they afford that? Because we started 364 00:19:55,320 --> 00:20:01,960 Speaker 1: doing the budget battles where can and I compete where 365 00:20:01,960 --> 00:20:04,480 Speaker 1: we use listener kind of tips on how to save 366 00:20:04,560 --> 00:20:08,160 Speaker 1: money and we roped you in to be the adjudicator 367 00:20:08,200 --> 00:20:09,159 Speaker 1: and judge them. 368 00:20:09,280 --> 00:20:10,440 Speaker 2: I'm quite the judge too. 369 00:20:10,840 --> 00:20:14,439 Speaker 1: Yeah, fine job of judging, and you are unpaid for 370 00:20:14,480 --> 00:20:17,240 Speaker 1: that much. Just that's a good way of saving money. 371 00:20:17,400 --> 00:20:18,600 Speaker 2: Yeah, that's good. That's true. 372 00:20:18,640 --> 00:20:21,080 Speaker 1: Actually, So if you want to listen to how today 373 00:20:21,080 --> 00:20:22,720 Speaker 1: afford that, I'll put a link in today's show notes 374 00:20:22,760 --> 00:20:24,160 Speaker 1: so that you can check that one out as well. 375 00:20:24,359 --> 00:20:27,080 Speaker 1: Got we traverse some ground today? Sean Up next to 376 00:20:27,119 --> 00:20:30,040 Speaker 1: the Fear and Greed Daily interview Vivekda from the Commwealth Bank. 377 00:20:30,720 --> 00:20:33,040 Speaker 2: Nothing to do with weddings of the US, All about 378 00:20:33,119 --> 00:20:34,760 Speaker 2: iron ore, gold and oil prices. 379 00:20:35,040 --> 00:20:37,000 Speaker 1: Indeed, it is a great chat. It is up next 380 00:20:37,000 --> 00:20:39,360 Speaker 1: to the Fear and Greed playlist on your podcast platform 381 00:20:39,480 --> 00:20:41,399 Speaker 1: or at Fearangreed dot com. Dot Au. 382 00:20:41,920 --> 00:20:43,760 Speaker 2: Thank you, Sean, thank you Michael. 383 00:20:44,000 --> 00:20:46,720 Speaker 1: It is Tuesday, the twentieth of August twenty twenty four. 384 00:20:46,760 --> 00:20:49,080 Speaker 1: Make sure you're following the podcast and join us online 385 00:20:49,080 --> 00:20:53,560 Speaker 1: on LinkedIn, Instagram, x TikTok, and Facebook. Michael Thompson, and 386 00:20:53,560 --> 00:20:57,720 Speaker 1: that was fear and greed. Have a great day.