1 00:00:03,840 --> 00:00:06,800 Speaker 1: It's Thursday, the twenty ninth of August twenty twenty four. 2 00:00:07,000 --> 00:00:09,720 Speaker 1: Welcome to the Fast five Business News by Fear and Greed. 3 00:00:09,720 --> 00:00:11,560 Speaker 1: Will we give you the top five business stories you 4 00:00:11,600 --> 00:00:14,120 Speaker 1: need to know in just five minutes. Are Michael Thompson 5 00:00:14,120 --> 00:00:15,400 Speaker 1: and Good morning Adam Lang. 6 00:00:15,720 --> 00:00:17,320 Speaker 2: Good morning Michael, Adam. 7 00:00:17,400 --> 00:00:20,520 Speaker 1: Five stories, five minutes. Let's get cracking. Story Number one. 8 00:00:20,640 --> 00:00:24,640 Speaker 1: Inflation is continuing it slow down, with the monthly headline 9 00:00:24,680 --> 00:00:28,280 Speaker 1: Consumer Price Index dropping to three point five percent in 10 00:00:28,320 --> 00:00:30,760 Speaker 1: the year to July. This has been a much anticipated 11 00:00:30,800 --> 00:00:34,279 Speaker 1: measure where everyone's watching very closely given many other countries 12 00:00:34,320 --> 00:00:35,479 Speaker 1: are looking at rate cuts. 13 00:00:35,880 --> 00:00:37,960 Speaker 2: That's right, Michael. In June it was at three point 14 00:00:37,960 --> 00:00:40,920 Speaker 2: eight percent, but now at three point five percent, that's 15 00:00:40,960 --> 00:00:43,040 Speaker 2: in the year to July. It is heading in the 16 00:00:43,120 --> 00:00:45,640 Speaker 2: right direction. However, it still is a bit higher than 17 00:00:45,680 --> 00:00:49,400 Speaker 2: the market consensus of three point four percent. Housing, food 18 00:00:49,440 --> 00:00:52,920 Speaker 2: and non alcoholic beverages, clothing and footwear, and alcohol and 19 00:00:52,960 --> 00:00:56,880 Speaker 2: tobacco were the most important contributors. Fruit and vegetables are up, 20 00:00:57,080 --> 00:01:00,440 Speaker 2: while housing and related expenses were a significant control tributor. 21 00:01:00,760 --> 00:01:04,440 Speaker 2: Even though the government's electricity subsidies did help those Federal 22 00:01:04,440 --> 00:01:07,840 Speaker 2: Treasurer Jim Chalmers said progress in the fight against inflation 23 00:01:07,959 --> 00:01:11,039 Speaker 2: is welcome. This is the final monthly data before the 24 00:01:11,080 --> 00:01:14,680 Speaker 2: Reserve Bank meets in late September. Though most economists have 25 00:01:14,760 --> 00:01:18,520 Speaker 2: not changed their expectations for rates based on this new data, 26 00:01:18,800 --> 00:01:21,760 Speaker 2: February twenty twenty five remains the date most expect the 27 00:01:21,800 --> 00:01:24,800 Speaker 2: Central Bank to cut interest rates. Of course, the RBA 28 00:01:24,920 --> 00:01:28,080 Speaker 2: will look through the headline data to instead focus on 29 00:01:28,160 --> 00:01:31,440 Speaker 2: underlying inflation, which strips out the one off government support 30 00:01:31,480 --> 00:01:32,560 Speaker 2: and some subsidies. 31 00:01:32,959 --> 00:01:34,880 Speaker 1: Yeah, Adam, clearly there's a lot of people under a 32 00:01:34,880 --> 00:01:37,240 Speaker 1: lot of pressure and it must be hitting the retail 33 00:01:37,280 --> 00:01:37,960 Speaker 1: sector hard. 34 00:01:38,440 --> 00:01:42,039 Speaker 2: Definitely is. Michael Deloitte Access Economics actually published a report 35 00:01:42,120 --> 00:01:45,400 Speaker 2: late last night that now estimates Australia has been in 36 00:01:45,440 --> 00:01:49,600 Speaker 2: a retail recession for eighteen months from now until Christmas. 37 00:01:49,720 --> 00:01:52,320 Speaker 2: It's probably going to be brutal for shop owners and 38 00:01:52,400 --> 00:01:53,279 Speaker 2: the retail market. 39 00:01:53,640 --> 00:01:55,800 Speaker 1: Yeah, I suspect it might be right. On a story 40 00:01:55,880 --> 00:01:59,880 Speaker 1: number two now nine, Entertainments profits plummeted twenty two percent 41 00:02:00,440 --> 00:02:03,360 Speaker 1: to two hundred and sixteen point four million dollars, with 42 00:02:03,520 --> 00:02:06,880 Speaker 1: revenues down three percent to mid a week. Television advertising 43 00:02:06,920 --> 00:02:10,000 Speaker 1: market almost a third of nine's revenue is now coming 44 00:02:10,000 --> 00:02:14,320 Speaker 1: from subscriptions and licensing when excluding property listing site domain, 45 00:02:14,440 --> 00:02:17,000 Speaker 1: so advertising remains a crucial component. 46 00:02:17,560 --> 00:02:20,160 Speaker 2: Yeah it does, Michael, and for its part, nine thinks 47 00:02:20,200 --> 00:02:23,440 Speaker 2: the TV market will experience a positive trend going forward, 48 00:02:23,720 --> 00:02:26,520 Speaker 2: with the Paris twenty twenty four Olympic Games putting a 49 00:02:26,520 --> 00:02:29,280 Speaker 2: bit of win back in as sales that has largely 50 00:02:29,360 --> 00:02:32,360 Speaker 2: been behind a ten percent lift, but without these games 51 00:02:32,680 --> 00:02:34,359 Speaker 2: it would have been looking at a low to mid 52 00:02:34,480 --> 00:02:38,120 Speaker 2: single digit declimb. Nine is cutting back one hundred million 53 00:02:38,160 --> 00:02:40,919 Speaker 2: dollars from its cost base over the twenty twenty four 54 00:02:40,960 --> 00:02:44,480 Speaker 2: and twenty twenty five financial years. A fully franked dividend 55 00:02:44,560 --> 00:02:46,760 Speaker 2: of four point five cents a share has been announced, 56 00:02:46,800 --> 00:02:49,040 Speaker 2: and that is eight point five cents for the full year. 57 00:02:49,520 --> 00:02:53,560 Speaker 1: Number three grocery giant Woolworth's net profit fell zero point 58 00:02:53,600 --> 00:02:56,880 Speaker 1: six percent over the last financial year. Those sales increase 59 00:02:56,960 --> 00:03:00,880 Speaker 1: five point six percent, with the Australian supermarket sected behind 60 00:03:00,919 --> 00:03:03,880 Speaker 1: most of the increase. The New Zealand supermarkets dragged down 61 00:03:03,880 --> 00:03:05,840 Speaker 1: the overall results with a one and a half billion 62 00:03:05,840 --> 00:03:06,600 Speaker 1: dollar impairment. 63 00:03:07,200 --> 00:03:10,400 Speaker 2: Yeah they did, Michael, and CEO Brad Banducci, who is 64 00:03:10,480 --> 00:03:13,040 Speaker 2: due to finish in the role next month. Said sales 65 00:03:13,080 --> 00:03:15,440 Speaker 2: for the first two months of the current financial year 66 00:03:15,440 --> 00:03:17,919 Speaker 2: are up three percent. Now. Some of that is due 67 00:03:17,960 --> 00:03:21,639 Speaker 2: to modest price increases. Prices are still going up rather 68 00:03:21,720 --> 00:03:24,440 Speaker 2: than going down at big grocery stores, but there's also 69 00:03:24,520 --> 00:03:28,080 Speaker 2: some growth in terms of item sales. By comparison, Coals 70 00:03:28,160 --> 00:03:31,080 Speaker 2: estimated a three point seven percent lift for the same period. 71 00:03:31,320 --> 00:03:34,880 Speaker 2: Big w which wool Worse owns, is having less success 72 00:03:35,160 --> 00:03:38,880 Speaker 2: with flat sales and discounting needed to attract customers to spend. 73 00:03:39,800 --> 00:03:44,560 Speaker 1: Story number four. Looking overseas, China's biggest retailer, JD dot Com, 74 00:03:44,800 --> 00:03:47,840 Speaker 1: is planning to buy back up to five billion US 75 00:03:47,880 --> 00:03:50,680 Speaker 1: dollars worth of its own shares amid major concerns about 76 00:03:50,680 --> 00:03:52,560 Speaker 1: a decline in consumer purchasing. 77 00:03:53,000 --> 00:03:55,760 Speaker 2: Yeah, Michael, JD dot Com is a massive retailer, and 78 00:03:55,800 --> 00:03:59,200 Speaker 2: it pushed well through its Dune quarter profit estimates, but 79 00:03:59,320 --> 00:04:02,160 Speaker 2: it has been struggling with investor fears about the local 80 00:04:02,200 --> 00:04:05,800 Speaker 2: retail market, particularly after rival teamuh was a big miss 81 00:04:05,840 --> 00:04:09,800 Speaker 2: on revenue expectations. This marks its second share buy back 82 00:04:09,880 --> 00:04:12,640 Speaker 2: for twenty twenty four, having gone through a US three 83 00:04:12,720 --> 00:04:15,640 Speaker 2: billion dollar round previously announced in March and it's a 84 00:04:15,680 --> 00:04:18,480 Speaker 2: theme we're seeing from big digital retailers in the region. 85 00:04:18,680 --> 00:04:20,640 Speaker 2: If you cast your mind back to February, you remember 86 00:04:20,640 --> 00:04:23,279 Speaker 2: that Ali Barber announced a US twenty five billion dollar 87 00:04:23,400 --> 00:04:26,440 Speaker 2: share buyback. We've been talking plenty on fear agreed about 88 00:04:26,480 --> 00:04:29,000 Speaker 2: the slowdown in China, which has included a lot of 89 00:04:29,080 --> 00:04:32,800 Speaker 2: upheople in the sluggish property market. JD dot Com will 90 00:04:32,839 --> 00:04:35,599 Speaker 2: continue to be a litmus test of that market, with 91 00:04:35,760 --> 00:04:38,400 Speaker 2: Walmart's selling off its multi billion dollar holding in the 92 00:04:38,400 --> 00:04:42,400 Speaker 2: business earlier in August to pursue its own interests in China. 93 00:04:42,839 --> 00:04:46,080 Speaker 1: Last one Adam's story Number five. UK Prime Minister Kiir 94 00:04:46,160 --> 00:04:49,480 Speaker 1: Starmer is in Germany in a bid too, in his words, 95 00:04:49,640 --> 00:04:53,560 Speaker 1: reset relations across the region and turn a corner on Brexit. 96 00:04:54,160 --> 00:04:58,040 Speaker 2: Yeah, Michael, Brexit, What Brexit? Keir Starmer is visiting Germany 97 00:04:58,120 --> 00:05:01,200 Speaker 2: to start talks on a new coopera ration treaty. The 98 00:05:01,240 --> 00:05:04,960 Speaker 2: agreement is expected to cover energy, security, technology, science and 99 00:05:04,960 --> 00:05:09,920 Speaker 2: trade opportunities, including improving market access. However, the treaty might 100 00:05:09,960 --> 00:05:12,600 Speaker 2: not come about until early twenty twenty five, so it's 101 00:05:12,640 --> 00:05:15,479 Speaker 2: still very early in the discussions, and that is despite 102 00:05:15,520 --> 00:05:18,839 Speaker 2: a defense agreement already being negotiated and due to be 103 00:05:18,880 --> 00:05:21,520 Speaker 2: finalized in the next few months. Keir Starmer is then 104 00:05:21,600 --> 00:05:24,799 Speaker 2: heading to Paris to talk to French President Immanuel Macron. 105 00:05:25,120 --> 00:05:27,440 Speaker 2: This is all part of his attempt to get trading 106 00:05:27,480 --> 00:05:30,720 Speaker 2: with his neighbors again. If he pulls it off, benefits 107 00:05:30,720 --> 00:05:33,920 Speaker 2: are expected for a range of industries, including the arts scene. 108 00:05:34,040 --> 00:05:37,680 Speaker 2: British labor is trying to reduce border checks on food products, 109 00:05:37,680 --> 00:05:40,640 Speaker 2: but is also trying to reduce paperwork for artists on 110 00:05:40,720 --> 00:05:44,719 Speaker 2: tour and make it easier for citizens to access specific jobs. 111 00:05:45,000 --> 00:05:48,400 Speaker 2: As an aside, it's pretty good timing for his Parisian adventures, 112 00:05:48,400 --> 00:05:51,039 Speaker 2: as the BBC reports that he'll get to attend the 113 00:05:51,040 --> 00:05:53,560 Speaker 2: opening ceremony of the Paralympics while he's there. 114 00:05:54,000 --> 00:05:56,120 Speaker 1: All right, there we go the top five business stories 115 00:05:56,120 --> 00:05:56,760 Speaker 1: in five minutes. 116 00:05:56,760 --> 00:05:58,400 Speaker 2: Thank you, Adam, Thank you Michael. 117 00:05:58,720 --> 00:06:01,320 Speaker 1: It is Thursday, the twenty nine of August twenty twenty four. 118 00:06:01,400 --> 00:06:03,800 Speaker 1: Remember to hit follow on the podcast and if five 119 00:06:03,800 --> 00:06:06,040 Speaker 1: minutes isn't enough, you can find our longer daily show 120 00:06:06,080 --> 00:06:09,359 Speaker 1: called Fear and Greed wherever you listen to podcasts. Michael 121 00:06:09,400 --> 00:06:11,480 Speaker 1: Thompson and that was the fast five business news by 122 00:06:11,520 --> 00:06:15,480 Speaker 1: Fear and Greed have a great day.