1 00:00:06,440 --> 00:00:09,080 Speaker 1: This is the weekend edition of Fear and Greed, daily 2 00:00:09,119 --> 00:00:11,560 Speaker 1: business news for people who make their own decisions. I'm 3 00:00:11,600 --> 00:00:13,560 Speaker 1: Michael Thompson and good morning Sean. 4 00:00:13,600 --> 00:00:14,040 Speaker 2: Aylmer. 5 00:00:14,280 --> 00:00:16,080 Speaker 3: Good morning, Michael, Sean. 6 00:00:16,320 --> 00:00:18,640 Speaker 1: Our weekend show is all about the two of us, 7 00:00:18,640 --> 00:00:20,920 Speaker 1: each nominating what we think is the biggest business story 8 00:00:20,960 --> 00:00:25,360 Speaker 1: of the week, the most remarkable business story, a sleeper story, 9 00:00:25,360 --> 00:00:27,840 Speaker 1: one that's maybe not getting the attention that it probably 10 00:00:27,880 --> 00:00:31,160 Speaker 1: should have or that we feel that it deserves, and 11 00:00:31,200 --> 00:00:36,240 Speaker 1: then our favorite business ish story. And every week. Because 12 00:00:36,280 --> 00:00:38,680 Speaker 1: this is a competition, because we are each nominating our 13 00:00:38,680 --> 00:00:41,479 Speaker 1: own and one of them has to win, we need 14 00:00:41,520 --> 00:00:44,000 Speaker 1: a judge to decide that winner. And that judge is 15 00:00:44,040 --> 00:00:47,560 Speaker 1: our Fear and Greed colleague, Adam Lang Adam, good morning. 16 00:00:47,640 --> 00:00:51,200 Speaker 2: Good morning Michael, and good morning Sean. Judging is my privilege. 17 00:00:51,280 --> 00:00:52,120 Speaker 2: Thank you both for it. 18 00:00:52,760 --> 00:00:54,560 Speaker 3: Well, that's a disappointing start, isn't it. 19 00:00:56,000 --> 00:00:57,880 Speaker 1: Adam, Can you please give us a little bit of 20 00:00:57,920 --> 00:01:00,279 Speaker 1: a rundown of what you are looking for in these 21 00:01:00,320 --> 00:01:01,880 Speaker 1: categories as we go through them today. 22 00:01:02,160 --> 00:01:04,480 Speaker 2: Okay, so in the Battle of the Stories, these are 23 00:01:04,480 --> 00:01:08,360 Speaker 2: the criteria I'm looking for. I want topicality, please, timeliness, 24 00:01:09,040 --> 00:01:12,800 Speaker 2: economic impact, subjective bias, of course, play a bit into 25 00:01:12,800 --> 00:01:17,119 Speaker 2: my subjective bias, if you may. And then melodrama Michael 26 00:01:17,160 --> 00:01:19,520 Speaker 2: admittedly or strong suit, but melodrama is always a bit 27 00:01:19,520 --> 00:01:19,839 Speaker 2: of fun. 28 00:01:20,280 --> 00:01:23,520 Speaker 1: I'm a little wary this week melodrama. I'm a little 29 00:01:23,680 --> 00:01:25,679 Speaker 1: I've been a little under the weather throughout the week, 30 00:01:26,120 --> 00:01:28,920 Speaker 1: and I just don't feel like I'm going to be 31 00:01:28,920 --> 00:01:32,280 Speaker 1: able to quite perform at the level that I normally do. 32 00:01:33,000 --> 00:01:36,080 Speaker 3: Adam, what put your helmet on? Yeah, we're in for 33 00:01:36,120 --> 00:01:36,600 Speaker 3: a doozy. 34 00:01:36,880 --> 00:01:39,520 Speaker 2: This could be a big one. 35 00:01:40,880 --> 00:01:43,360 Speaker 1: Shall we just get into it? Shall we jump into it? 36 00:01:44,319 --> 00:01:47,120 Speaker 1: After a very lengthy preamble. We've discussed everything we need to. 37 00:01:47,440 --> 00:01:49,440 Speaker 1: We know the criteria, we know what Adam is going 38 00:01:49,480 --> 00:01:52,200 Speaker 1: to disregard as he judges the stories. What's the biggest 39 00:01:52,200 --> 00:01:52,880 Speaker 1: one this week. 40 00:01:52,760 --> 00:01:58,640 Speaker 3: Sean Michael. It's clear markets, markets, markets, markets, markets, massive 41 00:01:58,680 --> 00:02:00,960 Speaker 3: week with Wall Street hitting a new closing high, while 42 00:02:01,000 --> 00:02:05,040 Speaker 3: locally the A six two hundred surge basically about a 43 00:02:05,040 --> 00:02:07,560 Speaker 3: week ago, a little bit more. It jumped, then it 44 00:02:07,640 --> 00:02:10,720 Speaker 3: tumbled and then jumped again. It's all about what's going 45 00:02:10,720 --> 00:02:14,120 Speaker 3: to happen to interest rates to the data, Adam, did 46 00:02:14,120 --> 00:02:16,800 Speaker 3: you hear that to the data. In the US, May 47 00:02:16,880 --> 00:02:19,519 Speaker 3: inflation figures were released and they show a general easing 48 00:02:19,560 --> 00:02:20,639 Speaker 3: of price pressures. 49 00:02:20,840 --> 00:02:21,360 Speaker 1: Good news. 50 00:02:21,360 --> 00:02:24,120 Speaker 3: Deecuity markets rallied Wall Street hit a new higher than 51 00:02:24,160 --> 00:02:27,600 Speaker 3: the Fed released it's updated economic projections that made it 52 00:02:27,680 --> 00:02:30,679 Speaker 3: clear there's one rate cut on the horizon this year, 53 00:02:30,880 --> 00:02:34,639 Speaker 3: not three as previously forecast. Current chairs Your Own Power 54 00:02:34,760 --> 00:02:39,240 Speaker 3: said the CPI figures were confidence building, not exactly overwhelming 55 00:02:39,280 --> 00:02:42,280 Speaker 3: support for a few rate cuts is are just confidence building. 56 00:02:43,240 --> 00:02:45,760 Speaker 3: He reiterated that what the Fed does is very much 57 00:02:45,800 --> 00:02:50,600 Speaker 3: dependent on the data. Uninflation in the US is unambiguously falling, 58 00:02:50,680 --> 00:02:53,440 Speaker 3: that is the good news, But when and by how 59 00:02:53,560 --> 00:02:56,560 Speaker 3: much rates will fall, that's a big unknown that's been 60 00:02:56,639 --> 00:02:58,880 Speaker 3: hitting the local market. The big miner is BHP four 61 00:02:58,919 --> 00:03:01,200 Speaker 3: toes QW Metals and Reo tin So was sold off. 62 00:03:01,400 --> 00:03:04,480 Speaker 3: The banks continued their incredible run. National Australian Bank this 63 00:03:04,520 --> 00:03:07,519 Speaker 3: week hit a nine year high. Commonwealth Bank we know 64 00:03:07,680 --> 00:03:12,160 Speaker 3: is close to its record level. Amazing. The text docs 65 00:03:12,160 --> 00:03:14,360 Speaker 3: are doing even better than There are a bunch of 66 00:03:14,400 --> 00:03:17,400 Speaker 3: household names such as Telstra and Woolies that have had 67 00:03:17,520 --> 00:03:22,320 Speaker 3: absolute shockers over the past year. Overall, equities are strong, 68 00:03:22,760 --> 00:03:27,360 Speaker 3: but really jittery, and of course that affects every single 69 00:03:27,480 --> 00:03:31,320 Speaker 3: one of us in this room. In fact, probably, I'm 70 00:03:31,360 --> 00:03:34,960 Speaker 3: happy to say every single listener. We all have super funds, 71 00:03:35,000 --> 00:03:38,520 Speaker 3: don't we. What the market does makes a huge difference 72 00:03:38,720 --> 00:03:43,920 Speaker 3: to an individual's wealth. Massive week for markets, Michael, Yes. 73 00:03:43,920 --> 00:03:47,680 Speaker 1: Good one, Sean. And I love how you started with markets, markets, markets, markets, 74 00:03:47,680 --> 00:03:50,120 Speaker 1: because I can do that too. And in fact, I'm 75 00:03:50,160 --> 00:03:55,520 Speaker 1: going to jobs, jobs, jobs, jobs, jobs. 76 00:03:55,680 --> 00:03:57,800 Speaker 3: I hope this is about Steve jobs, because if they're 77 00:03:57,800 --> 00:04:00,080 Speaker 3: about anything else, you haven't got a hope. 78 00:04:00,240 --> 00:04:02,240 Speaker 1: It is not about Steve jobs. It is about the 79 00:04:02,320 --> 00:04:06,200 Speaker 1: kind of jobs that we all have, the jobs that matter. 80 00:04:06,680 --> 00:04:11,680 Speaker 1: The unemployment rate fell to four percent in May after 81 00:04:11,760 --> 00:04:15,720 Speaker 1: a near forty thousand jump in jobs last month. The 82 00:04:15,800 --> 00:04:18,520 Speaker 1: labor market is in good shape. The labor market is 83 00:04:18,560 --> 00:04:24,560 Speaker 1: in remarkable shape. In fact, despite the weakness of the 84 00:04:24,640 --> 00:04:27,719 Speaker 1: economy over the last couple of quarters, the labor market 85 00:04:27,880 --> 00:04:32,520 Speaker 1: is remarkably strong. There has been some when you look 86 00:04:32,560 --> 00:04:34,719 Speaker 1: into the data, right, and I know we all just 87 00:04:34,880 --> 00:04:37,560 Speaker 1: love a good bit of data. 88 00:04:37,600 --> 00:04:40,920 Speaker 3: There are plenty Michael Kakoules go on, there are. 89 00:04:40,800 --> 00:04:45,560 Speaker 1: Plenty of interesting stats from the ABS. After all, stats 90 00:04:45,800 --> 00:04:49,000 Speaker 1: is obviously what they do. The Bureau Statistics said that 91 00:04:49,040 --> 00:04:53,320 Speaker 1: there are now almost six hundred and sixty thousand unemployed people, 92 00:04:53,400 --> 00:04:55,520 Speaker 1: which is about one hundred and ten thousand fewer than 93 00:04:55,560 --> 00:04:58,120 Speaker 1: in March twenty twenty, just before the pandemic. That's just 94 00:04:58,160 --> 00:05:00,760 Speaker 1: a little kind of little tidbit just to amuse you, 95 00:05:00,800 --> 00:05:03,440 Speaker 1: and you'll be kind of dining out on that one 96 00:05:03,480 --> 00:05:04,040 Speaker 1: for a little while. 97 00:05:04,040 --> 00:05:05,200 Speaker 2: But but. 98 00:05:06,640 --> 00:05:13,840 Speaker 1: Adam, back to the core number here jobs. Why is 99 00:05:13,920 --> 00:05:18,360 Speaker 1: this the biggest story of the week. Well, I would 100 00:05:18,440 --> 00:05:22,200 Speaker 1: think that it's obvious. It's because of the nahru of course, 101 00:05:24,320 --> 00:05:28,520 Speaker 1: is this a country? The non accelerating inflation rate of unemployment? 102 00:05:28,600 --> 00:05:30,120 Speaker 1: And what you need to do here? 103 00:05:30,200 --> 00:05:33,760 Speaker 3: Sorry, can I say something already? He has dishonored himself. 104 00:05:34,000 --> 00:05:38,680 Speaker 3: It's not the non accelerating inflation rate of unemployment. It's 105 00:05:38,680 --> 00:05:42,000 Speaker 3: the non accelerating inflationary rate of unemployment. 106 00:05:42,080 --> 00:05:46,479 Speaker 1: But go on, I am unwell, Sun, you are picking 107 00:05:46,520 --> 00:05:50,159 Speaker 1: on someone who is not able to defend themselves. What 108 00:05:50,320 --> 00:05:53,160 Speaker 1: you need to do here, what you really need to 109 00:05:53,200 --> 00:05:55,080 Speaker 1: do is look at the trend and looking at the 110 00:05:55,080 --> 00:05:59,000 Speaker 1: wages growth numbers, the quarterly numbers. Wages growth peaked last 111 00:05:59,120 --> 00:06:03,120 Speaker 1: year and since then, wages growth has been slowing yet 112 00:06:03,680 --> 00:06:09,240 Speaker 1: yet unemployment has been spectacularly low and stable, and it 113 00:06:09,320 --> 00:06:11,800 Speaker 1: continues to be low and stable. It's now four percent, 114 00:06:11,880 --> 00:06:15,159 Speaker 1: down from four point one percent. This is a bit unusual, 115 00:06:15,360 --> 00:06:19,360 Speaker 1: right that we are seeing wages growth slowing but unemployment 116 00:06:19,480 --> 00:06:23,119 Speaker 1: remaining so low. What this says to me as an 117 00:06:23,120 --> 00:06:28,600 Speaker 1: interested observer, right is that the RBA might just need 118 00:06:28,640 --> 00:06:30,600 Speaker 1: to have a little bit of a look at its 119 00:06:30,680 --> 00:06:34,040 Speaker 1: nayroom modeling, which is something that really that Governor Michelle 120 00:06:34,040 --> 00:06:38,360 Speaker 1: Buloch hasn't hasn't really been able to address directly. So far, 121 00:06:38,839 --> 00:06:41,960 Speaker 1: he's basically been saying, look, haven't We can't really do 122 00:06:42,040 --> 00:06:46,800 Speaker 1: that at this point, but it is time I'm calling it. 123 00:06:47,120 --> 00:06:51,000 Speaker 1: As of today, the Reserve banks nayroom model needs adjusting, 124 00:06:51,000 --> 00:06:53,120 Speaker 1: and of course that'll play into the interest rates decision 125 00:06:53,440 --> 00:06:57,960 Speaker 1: because it means that interest rates can be structurally lower 126 00:06:58,360 --> 00:07:03,520 Speaker 1: starting with rate cuts in twenty four This is very timely, 127 00:07:03,600 --> 00:07:06,520 Speaker 1: of course, feeding into the discussion when the Reserve Bank 128 00:07:06,600 --> 00:07:11,640 Speaker 1: Board meets next week. And because of that intersection of jobs, 129 00:07:11,640 --> 00:07:14,640 Speaker 1: of wages and interest rates in the economy, this is 130 00:07:15,040 --> 00:07:21,480 Speaker 1: the biggest story of the week. Dear, oh dear, that 131 00:07:22,520 --> 00:07:23,360 Speaker 1: was invigorating. 132 00:07:26,120 --> 00:07:28,040 Speaker 3: I had there were reserve bankers out there listening, because 133 00:07:28,040 --> 00:07:30,800 Speaker 3: they'll be invigorated. They'll be thinking themselves, do we have 134 00:07:30,800 --> 00:07:32,600 Speaker 3: a neighbory model? Didn't realize that. 135 00:07:32,440 --> 00:07:32,920 Speaker 2: There we go. 136 00:07:34,200 --> 00:07:36,880 Speaker 1: Now, no questions. I shan't be taking any questions on 137 00:07:36,920 --> 00:07:40,840 Speaker 1: it because I am not well enough to answer any questions. 138 00:07:43,200 --> 00:07:46,800 Speaker 2: Oh my word. Okay. So look, you both started out 139 00:07:46,800 --> 00:07:50,320 Speaker 2: in such similar fashion like Jerry Harvey voicing a Harvey 140 00:07:50,320 --> 00:07:56,800 Speaker 2: Norman ad Sean with markets repeated several times, Michael with 141 00:07:56,960 --> 00:08:02,720 Speaker 2: jobs repeated several times. Excellent opening by both USA markets. 142 00:08:02,720 --> 00:08:06,400 Speaker 2: Impact on interest rates. Look, that does have a massive 143 00:08:06,440 --> 00:08:12,000 Speaker 2: impact on interest rates around the world. So huge story, Michael, 144 00:08:12,520 --> 00:08:17,120 Speaker 2: you had me at Nairou. Now one of the factors 145 00:08:17,160 --> 00:08:20,440 Speaker 2: I should probably bring into this is credibility, because I 146 00:08:20,480 --> 00:08:23,560 Speaker 2: have to say, you spoke about so much stuff which 147 00:08:23,640 --> 00:08:28,679 Speaker 2: I know you know very little about, but utterly convincingly. 148 00:08:29,800 --> 00:08:31,720 Speaker 3: That you are not going to give this win to Michael, 149 00:08:31,760 --> 00:08:32,319 Speaker 3: Are you, Adam? 150 00:08:32,600 --> 00:08:35,120 Speaker 1: I am, Oh dear, have. 151 00:08:35,160 --> 00:08:39,320 Speaker 3: We actually dropped all sensibility in this show? What he 152 00:08:39,480 --> 00:08:41,440 Speaker 3: was talking about was absolute bumpkin. 153 00:08:41,720 --> 00:08:47,080 Speaker 1: May I just say, Adam that yes, I appreciate this 154 00:08:47,280 --> 00:08:50,040 Speaker 1: very much, and I feel like this is a fair 155 00:08:50,120 --> 00:08:54,160 Speaker 1: and just decision, and one that Stephen could coolus and 156 00:08:54,200 --> 00:09:00,199 Speaker 1: I richly deserve because because there is a chance. 157 00:09:00,480 --> 00:09:02,520 Speaker 2: Yes, that you relied on Stephen. 158 00:09:02,640 --> 00:09:04,240 Speaker 1: No, no, no. 159 00:09:05,200 --> 00:09:06,240 Speaker 2: That Stephen wrote it. 160 00:09:06,400 --> 00:09:10,080 Speaker 1: No, but there is a very slim chance that I 161 00:09:10,160 --> 00:09:14,600 Speaker 1: might have said to our good friend, fearing Greets resident economist, 162 00:09:14,559 --> 00:09:17,560 Speaker 1: Stephen could Coulis. I said, Stephen, I'm going to be 163 00:09:17,600 --> 00:09:20,960 Speaker 1: doing jobs as the biggest story of the week. How 164 00:09:20,960 --> 00:09:24,440 Speaker 1: the hell do I do this? And he goes, I've 165 00:09:24,440 --> 00:09:28,000 Speaker 1: got something for you, and he fed me a little line, 166 00:09:28,200 --> 00:09:29,959 Speaker 1: and then I kind of like, okay, all right, I 167 00:09:30,000 --> 00:09:32,160 Speaker 1: can work with this. And I even went back to 168 00:09:32,280 --> 00:09:34,240 Speaker 1: him before I did it, say have I got this 169 00:09:34,320 --> 00:09:36,880 Speaker 1: at all? Right? And he goes, yes, But what about 170 00:09:36,880 --> 00:09:40,800 Speaker 1: if you also said this and between us, you know. 171 00:09:40,760 --> 00:09:44,520 Speaker 2: What he's been coached? Well, yeah, so I would add this, Michael, 172 00:09:45,400 --> 00:09:51,079 Speaker 2: population growth is also very important. Population growth. And then 173 00:09:51,280 --> 00:09:56,000 Speaker 2: next to that, unemployment is still to me a bizarre measure. 174 00:09:56,160 --> 00:09:58,520 Speaker 2: And you know, the ABS measures this. If you work 175 00:09:58,640 --> 00:10:03,680 Speaker 2: one hour or more in that week, you're employed. So 176 00:10:03,840 --> 00:10:06,800 Speaker 2: really it's quite a thin measurement. Unemployment. 177 00:10:06,920 --> 00:10:08,520 Speaker 3: It's quite a thin judgment. 178 00:10:10,920 --> 00:10:13,560 Speaker 2: But Michael, you had me at Nairou. 179 00:10:14,400 --> 00:10:19,880 Speaker 1: Look all, Dad, it was high risk. That was risk, 180 00:10:19,960 --> 00:10:20,600 Speaker 1: high reward. 181 00:10:21,240 --> 00:10:23,959 Speaker 3: You've just discredited the show totally, both of. 182 00:10:23,880 --> 00:10:28,400 Speaker 1: You, Sean Sewn. Why is that unusual? I discredit the 183 00:10:28,440 --> 00:10:33,000 Speaker 1: show every week. This is nothing different, except here I 184 00:10:33,040 --> 00:10:36,280 Speaker 1: actually had some data behind me to discredit myself. 185 00:10:36,320 --> 00:10:39,520 Speaker 3: I actually, I actually take this show seriously. Clearly, I'm 186 00:10:39,559 --> 00:10:45,720 Speaker 3: on my own, Michael, was your most remarkable story. Let's 187 00:10:45,720 --> 00:10:46,319 Speaker 3: just get on with. 188 00:10:46,280 --> 00:10:48,880 Speaker 1: It, all right, moving on to the most remarkable story. 189 00:10:49,400 --> 00:10:53,680 Speaker 1: You know, I was thinking about this, and I feel 190 00:10:53,679 --> 00:10:57,240 Speaker 1: like we don't talk about the tech giants enough on 191 00:10:57,280 --> 00:11:03,280 Speaker 1: this show. I am willing to donate my most remarkable 192 00:11:03,320 --> 00:11:07,480 Speaker 1: category to use it to highlight the achievements of the 193 00:11:07,600 --> 00:11:14,440 Speaker 1: unsung heroes of the S and P five hundred, Microsoft, Microsoft, Apple, 194 00:11:15,840 --> 00:11:20,640 Speaker 1: and in video. Look, I know, I know that these companies, 195 00:11:20,640 --> 00:11:23,560 Speaker 1: particularly in video the chip maker, have been mentioned a 196 00:11:23,559 --> 00:11:25,840 Speaker 1: lot lately. I know I'm being perhaps a little bit 197 00:11:25,840 --> 00:11:30,920 Speaker 1: facetious just for once, but in a remarkable year, right, 198 00:11:31,280 --> 00:11:36,920 Speaker 1: this was a truly remarkable week, and it was Apple's week, 199 00:11:37,600 --> 00:11:42,920 Speaker 1: and at its core very good anyway. It was its 200 00:11:42,920 --> 00:11:47,280 Speaker 1: announcement of how it would incorporate artificial intelligence or Apple 201 00:11:47,360 --> 00:11:51,439 Speaker 1: Intelligence as they are cleverly calling it into its devices. 202 00:11:51,440 --> 00:11:53,800 Speaker 1: There'll be a new version of Siri. What's kind of 203 00:11:53,800 --> 00:11:56,360 Speaker 1: image editing, summarizing of documents, all that kind of thing, 204 00:11:56,400 --> 00:11:59,640 Speaker 1: a big tie up with open ais Chat, GPT, an 205 00:11:59,640 --> 00:12:02,520 Speaker 1: increase in data being processed off device. This is a 206 00:12:02,679 --> 00:12:04,560 Speaker 1: move into a kind of a new space for Apple. 207 00:12:04,880 --> 00:12:09,080 Speaker 1: This was this was big. Actually, you know what, scrap that. 208 00:12:09,360 --> 00:12:15,960 Speaker 1: This was huge, one massive, one of the most significant 209 00:12:16,080 --> 00:12:23,840 Speaker 1: announcements by Apple in years, and investors loved it, absolutely 210 00:12:24,000 --> 00:12:26,480 Speaker 1: lapped it up. In just the first twenty four hours 211 00:12:27,480 --> 00:12:30,280 Speaker 1: after the announcement, Apple share price shot up seven percent 212 00:12:31,440 --> 00:12:33,920 Speaker 1: the week before, and Video had passed Apple to become 213 00:12:33,960 --> 00:12:37,079 Speaker 1: the second largest company on Wall Street. Thanks to AI, 214 00:12:37,240 --> 00:12:40,200 Speaker 1: Apple took back the number two place. Didn't stop there. 215 00:12:40,400 --> 00:12:43,480 Speaker 1: The next day, it went up another five percent leapfrogged 216 00:12:43,520 --> 00:12:49,120 Speaker 1: Microsoft to reclaim the overall crown as the biggest company 217 00:12:49,559 --> 00:12:54,240 Speaker 1: on Wall Street. Massive, massive, massive result. But all three 218 00:12:54,280 --> 00:12:58,040 Speaker 1: of them, really, Apple, Microsoft and Video are just monsters 219 00:12:58,200 --> 00:13:02,079 Speaker 1: worth more than what nine trillion US dollars between them 220 00:13:02,120 --> 00:13:06,440 Speaker 1: around fourteen trillion Australian equal. As you pointed out Sean 221 00:13:06,559 --> 00:13:10,720 Speaker 1: through the week, to all of the Australian residential property 222 00:13:10,720 --> 00:13:14,000 Speaker 1: market and all of our superannuation. And to further illustrate 223 00:13:14,040 --> 00:13:19,319 Speaker 1: the point, it would be enough to buy twenty thousand, 224 00:13:19,480 --> 00:13:23,920 Speaker 1: two hundred and twenty four new Airbus a three eighty 225 00:13:24,040 --> 00:13:30,160 Speaker 1: aircraft that's relevant, or thirty thousand, eight hundred and twenty 226 00:13:30,280 --> 00:13:35,680 Speaker 1: two Boeing Dreamliners. There you go, a useful metric perhaps, 227 00:13:35,920 --> 00:13:38,240 Speaker 1: And I'm mentioning this simply because I haven't got an 228 00:13:38,280 --> 00:13:41,280 Speaker 1: aircraft story in anywhere today. So I think it's a 229 00:13:41,280 --> 00:13:43,320 Speaker 1: good way of kind of killing two birds with one stone, 230 00:13:43,320 --> 00:13:47,880 Speaker 1: mentioning planes and introducing a new metric to demonstrate just 231 00:13:48,520 --> 00:13:56,760 Speaker 1: how enormous, how significant, how overwhelmingly remarkable these companies are 232 00:13:56,800 --> 00:14:00,400 Speaker 1: now and the fact that they just keep on rowing. 233 00:14:00,559 --> 00:14:05,480 Speaker 1: But it was Apple's week, the most remarkable story of 234 00:14:05,600 --> 00:14:07,400 Speaker 1: the week, Sean. 235 00:14:08,080 --> 00:14:11,480 Speaker 3: I'm exhausted me too. If you want a new remarkable, 236 00:14:11,600 --> 00:14:14,520 Speaker 3: like a remarkable throw that's actually new, but that hasn't 237 00:14:14,559 --> 00:14:17,160 Speaker 3: been done dozens and dozens and dozens of times before 238 00:14:18,200 --> 00:14:22,320 Speaker 3: I have one. It's how many companies are leaving the 239 00:14:22,400 --> 00:14:27,120 Speaker 3: AX by my count, thirty two so far this year, 240 00:14:27,160 --> 00:14:30,440 Speaker 3: and a couple more ready to go. This week, we 241 00:14:30,520 --> 00:14:32,720 Speaker 3: had shareholders in Adbry agreed to be sold to an 242 00:14:32,720 --> 00:14:35,760 Speaker 3: Irish group shareholders and CSR agreed to be sold to 243 00:14:35,840 --> 00:14:39,920 Speaker 3: French outfits Saint Sabain. Both have histories dating back to 244 00:14:39,920 --> 00:14:42,440 Speaker 3: the eighteen hundreds. Both will delist from the AX. Some 245 00:14:42,480 --> 00:14:44,320 Speaker 3: of the companies to go this year include as Your 246 00:14:44,360 --> 00:14:47,960 Speaker 3: Minerals Link Administration, Avy Said Minerals, bow Art, Long Year, 247 00:14:47,960 --> 00:14:51,680 Speaker 3: Whisper Costa Group, Cecil Alcombe just goes on. You can 248 00:14:51,680 --> 00:14:55,400 Speaker 3: throw a newcs Mining although it's acquiring was Newmont Resources. 249 00:14:55,480 --> 00:14:58,040 Speaker 3: It has a secondary listing on the AX, but still 250 00:14:58,440 --> 00:15:01,560 Speaker 3: new Quest isn't there years we've seen some very large 251 00:15:01,560 --> 00:15:04,760 Speaker 3: companies disappearing from the exchange. I think Sydney Airport Corporation 252 00:15:05,240 --> 00:15:09,400 Speaker 3: after pay Os middles Michael Michael Michael Michael Michael pay attention. 253 00:15:10,000 --> 00:15:14,000 Speaker 3: I actually was pleasant enough to you to actually watch you. 254 00:15:13,920 --> 00:15:16,160 Speaker 1: Well, you know what, you need to wave your arms around, 255 00:15:17,040 --> 00:15:19,200 Speaker 1: You need to just I just want the story to win. 256 00:15:19,280 --> 00:15:23,400 Speaker 1: You need to be visually engaging, Sean. It's like watching 257 00:15:24,000 --> 00:15:26,000 Speaker 1: a tree deliver a speech. 258 00:15:27,120 --> 00:15:31,600 Speaker 4: What me yeah, yeah, really dull just no, like you 259 00:15:31,640 --> 00:15:35,120 Speaker 4: don't move much, you don't give you were just you 260 00:15:35,160 --> 00:15:39,000 Speaker 4: were just there talking and whereas I I am fully 261 00:15:39,080 --> 00:15:42,280 Speaker 4: kind of just I want to kind of just bring 262 00:15:42,320 --> 00:15:45,160 Speaker 4: you all into it, and I use my arms to 263 00:15:45,240 --> 00:15:45,680 Speaker 4: do that. 264 00:15:46,200 --> 00:15:48,720 Speaker 3: Okay, So we've had a stack of companies leave. The 265 00:15:48,760 --> 00:15:50,920 Speaker 3: scary thing about it is there a very few new 266 00:15:50,920 --> 00:15:53,560 Speaker 3: companies coming along to take their place, just forty five 267 00:15:53,640 --> 00:15:56,120 Speaker 3: IPOs last year compared to the annual average of one 268 00:15:56,160 --> 00:15:58,880 Speaker 3: hundred and twenty. Because many Gomez is floating next week, 269 00:15:58,960 --> 00:16:01,400 Speaker 3: it's any worth about two point two billion dollars. We've 270 00:16:01,400 --> 00:16:04,680 Speaker 3: got the Sigma Healthcare merger with Chemist Warehouse that's supposed 271 00:16:04,720 --> 00:16:06,680 Speaker 3: to be an eight point eight billion dollar merger. Got 272 00:16:06,680 --> 00:16:08,560 Speaker 3: a few hairs on that one though, as we found 273 00:16:08,600 --> 00:16:10,600 Speaker 3: out this week, because the AHRI will C the Competition 274 00:16:10,640 --> 00:16:14,440 Speaker 3: watchdog has some concerns any really big float such as 275 00:16:14,520 --> 00:16:17,440 Speaker 3: Online Graphics Group can be slated for next year. Just 276 00:16:17,480 --> 00:16:19,360 Speaker 3: does it on Wall Street. The capital pools are so 277 00:16:19,480 --> 00:16:23,120 Speaker 3: much bigger they can actually find more money there. Even 278 00:16:23,240 --> 00:16:25,760 Speaker 3: some of the local companies like Life three sixty. This 279 00:16:25,840 --> 00:16:29,520 Speaker 3: week it debuted on Nasdaq simply to lift its profile 280 00:16:29,600 --> 00:16:32,640 Speaker 3: in the US. The cupboard is pretty bare for the ASEX. Now, 281 00:16:32,640 --> 00:16:36,280 Speaker 3: this has got all sorts of problem because superannuation money. 282 00:16:36,800 --> 00:16:39,360 Speaker 3: I'm going back to that superannuation money. It needs to 283 00:16:39,400 --> 00:16:42,480 Speaker 3: find a new home. And many of us want to 284 00:16:42,520 --> 00:16:45,920 Speaker 3: invest our money in OZSI equities. We have twelve percent 285 00:16:45,960 --> 00:16:48,720 Speaker 3: of our pay going into the into our super funds. 286 00:16:49,040 --> 00:16:51,040 Speaker 3: Let's say even thirty or forty percent is going into 287 00:16:51,040 --> 00:16:55,480 Speaker 3: Australian equities right now. Wonder OZSI equities keep rising. There's 288 00:16:55,520 --> 00:16:59,239 Speaker 3: this flow of money into it and not enough big companies. 289 00:16:59,800 --> 00:17:02,840 Speaker 3: Is truly remarkable, highlighted this week by ad Bryer and 290 00:17:02,920 --> 00:17:07,080 Speaker 3: CSR shareholders voting to D list. That is actually what 291 00:17:07,119 --> 00:17:11,800 Speaker 3: a remarkable story looks like as opposed to a Well, 292 00:17:12,119 --> 00:17:14,159 Speaker 3: it's not that Markel's story isn't remarkable, it's just that 293 00:17:14,200 --> 00:17:15,200 Speaker 3: we've done it so many times. 294 00:17:15,200 --> 00:17:20,000 Speaker 2: Adam, Yeah, good story, Michael, Apple intelligence and to Apple's core, 295 00:17:20,200 --> 00:17:26,520 Speaker 2: very good but long running theme. And we've known that 296 00:17:26,840 --> 00:17:31,000 Speaker 2: or suspected speculated that Apple the announcement of the Developers 297 00:17:31,000 --> 00:17:34,679 Speaker 2: Conference would be about AI for some time. So it 298 00:17:34,760 --> 00:17:38,679 Speaker 2: feels less remarkable because it was so expected. So I 299 00:17:38,800 --> 00:17:44,080 Speaker 2: think Sean's story on ASX departures and superannuation having that 300 00:17:44,160 --> 00:17:47,879 Speaker 2: remarkable problem really an incredible challenge that there's just not 301 00:17:48,040 --> 00:17:51,399 Speaker 2: enough space to invest all that money in Australia. So 302 00:17:51,680 --> 00:17:54,600 Speaker 2: I think this has been Sean's story since you did 303 00:17:54,600 --> 00:17:59,000 Speaker 2: it this week, and I think it's an absolutely brilliant point. 304 00:17:59,200 --> 00:18:02,160 Speaker 2: So it is the remarkable story of the week. 305 00:18:02,600 --> 00:18:06,280 Speaker 1: Okay, So I'm just adding this into my notes because 306 00:18:06,600 --> 00:18:11,840 Speaker 1: it clearly shows that Adam's subjective bias is the criteria 307 00:18:11,880 --> 00:18:14,560 Speaker 1: that has the most waiting in this particular one, because 308 00:18:14,600 --> 00:18:15,200 Speaker 1: he's overlooked. 309 00:18:15,320 --> 00:18:20,000 Speaker 3: Really like, nah, Adam, nah, you got me at nahru oh, 310 00:18:20,040 --> 00:18:22,399 Speaker 3: for God's sake, that is just pure subjective bias. 311 00:18:22,720 --> 00:18:26,640 Speaker 2: Yeah, it was brilliant Michael speaking about. 312 00:18:27,320 --> 00:18:29,080 Speaker 3: Actually, mean, that's true. Actually, if I think of it 313 00:18:29,080 --> 00:18:33,200 Speaker 3: that way, Adam Michael giving us an economics lesson. You're right, 314 00:18:33,600 --> 00:18:36,119 Speaker 3: that is the biggest story of the week, not what 315 00:18:36,160 --> 00:18:37,679 Speaker 3: he says, just the fact that he's giving us an 316 00:18:37,680 --> 00:18:38,520 Speaker 3: economics lesson. 317 00:18:39,160 --> 00:18:40,040 Speaker 2: It was wonderful. 318 00:18:40,119 --> 00:18:43,120 Speaker 1: It was really quite exciting. If I'm honest, I can 319 00:18:43,160 --> 00:18:46,440 Speaker 1: suddenly see why method acting. Yes, I can suddenly see 320 00:18:46,480 --> 00:18:49,399 Speaker 1: why all of you economists are always so excited. You 321 00:18:49,440 --> 00:18:52,080 Speaker 1: can see why the kook is so excited. And look, 322 00:18:52,160 --> 00:18:54,280 Speaker 1: I mean, without him, I probably still would have been 323 00:18:54,280 --> 00:18:55,960 Speaker 1: able to do it. If I was honest, I probably 324 00:18:55,960 --> 00:18:58,480 Speaker 1: still would have done it, and I probably still would 325 00:18:58,480 --> 00:19:00,280 Speaker 1: have won. So you know what, thank you Steve for 326 00:19:00,280 --> 00:19:01,800 Speaker 1: your help, but I didn't need it. 327 00:19:01,880 --> 00:19:03,840 Speaker 3: I think I think that was the thanks for nothing, Steve. 328 00:19:04,800 --> 00:19:07,240 Speaker 1: Clearly I could have done that one on my own. 329 00:19:07,600 --> 00:19:10,000 Speaker 2: I reckon, you're on shaky ground there, Michael. 330 00:19:09,800 --> 00:19:12,439 Speaker 1: Yep might be. Anyway, we'll take a quick break. We 331 00:19:12,520 --> 00:19:15,120 Speaker 1: will come back. What do we want all We'll come 332 00:19:15,160 --> 00:19:25,080 Speaker 1: back and find a sleeper story of the week. All right, Sean, 333 00:19:25,119 --> 00:19:27,240 Speaker 1: we are looking for a sleeper story. So this is 334 00:19:27,280 --> 00:19:29,280 Speaker 1: a story that's not getting the attention that we feel 335 00:19:29,320 --> 00:19:33,320 Speaker 1: it deserves, or maybe one that is flying under the 336 00:19:33,400 --> 00:19:36,720 Speaker 1: radar a wee bit. Have you found a good one 337 00:19:36,840 --> 00:19:39,639 Speaker 1: for us this week? I have the sleeper story of 338 00:19:39,680 --> 00:19:40,760 Speaker 1: the week, Adam. 339 00:19:41,280 --> 00:19:44,040 Speaker 3: Forget you, Michael. Is the one about the mining and 340 00:19:44,280 --> 00:19:49,159 Speaker 3: Energy union finding same job, same pay applications against BHPS 341 00:19:49,480 --> 00:19:52,840 Speaker 3: labor higher firms. We didn't hear much about it, but 342 00:19:52,960 --> 00:19:56,000 Speaker 3: this is the big, big test case of the Albanezy 343 00:19:56,080 --> 00:19:58,880 Speaker 3: government's new laws. The application seek to lift the pave 344 00:19:58,960 --> 00:20:01,440 Speaker 3: about seventeen hundred work workers by between ten thousand and 345 00:20:01,480 --> 00:20:04,640 Speaker 3: forty thousand a year. BHP last year said these new 346 00:20:04,760 --> 00:20:07,639 Speaker 3: Albanzi laws or the new government laws would cost the 347 00:20:07,640 --> 00:20:10,360 Speaker 3: company an extra one point three billion dollars a year 348 00:20:10,400 --> 00:20:13,320 Speaker 3: about five thousand full time workers. The CFO then went 349 00:20:13,320 --> 00:20:15,960 Speaker 3: on to say that will flow through to lower dividends 350 00:20:15,960 --> 00:20:18,720 Speaker 3: for shareholders. He put it at about thirty cents per 351 00:20:18,760 --> 00:20:21,879 Speaker 3: dividend lower, very much trying to get the shareholders to 352 00:20:21,960 --> 00:20:25,920 Speaker 3: react against these Albanzi government laws. It's the same job 353 00:20:25,920 --> 00:20:29,520 Speaker 3: at same pay laws. These workers are employed across three 354 00:20:29,560 --> 00:20:32,440 Speaker 3: open cup minds. The case is really complex because it's 355 00:20:32,480 --> 00:20:36,080 Speaker 3: difficult to compare workers on the basis of skills, rosters 356 00:20:36,080 --> 00:20:40,160 Speaker 3: and pay bonuses across the three minds, not just within 357 00:20:40,200 --> 00:20:43,000 Speaker 3: the mind it's one mine itself, but across three minds. 358 00:20:43,480 --> 00:20:46,800 Speaker 3: MEU Queensland President Mitch Hughes was an in fighting voice 359 00:20:46,800 --> 00:20:49,320 Speaker 3: when he said it was important to address BHP's labor 360 00:20:49,400 --> 00:20:54,160 Speaker 3: higher road. He called it why is this case so important? 361 00:20:54,280 --> 00:20:58,840 Speaker 3: One BHP is the biggest user of outsourced labor in 362 00:20:59,119 --> 00:21:03,240 Speaker 3: the coal seat. In the coll sector, it sets the trend. Two. 363 00:21:03,640 --> 00:21:06,760 Speaker 3: The laws haven't been tested yet. Now other applications by 364 00:21:06,880 --> 00:21:11,480 Speaker 3: unions have basically triggered a positive response from employers. So 365 00:21:12,080 --> 00:21:15,080 Speaker 3: Teas last year, for example, agreed to raise the pay 366 00:21:15,200 --> 00:21:18,120 Speaker 3: of labor high workers after THEMEU applied for an order, 367 00:21:18,520 --> 00:21:19,960 Speaker 3: they just said, we're not going to go through the 368 00:21:20,000 --> 00:21:25,840 Speaker 3: court process. We'll just do it three. It's BHP. If 369 00:21:25,880 --> 00:21:29,280 Speaker 3: it loses this fight, not many miners will take on 370 00:21:29,359 --> 00:21:33,480 Speaker 3: the union. If it wins the fight, or any one 371 00:21:33,520 --> 00:21:37,639 Speaker 3: of the initial ten applications by the MEU is lost, 372 00:21:38,880 --> 00:21:40,800 Speaker 3: then that makes it very tough for the union movement 373 00:21:41,400 --> 00:21:44,960 Speaker 3: to apply the whole same job, same pay application. This 374 00:21:45,480 --> 00:21:50,000 Speaker 3: test case, which was announced this week, really will set 375 00:21:50,040 --> 00:21:53,080 Speaker 3: the agenda for mining and the whole same job, same pay. 376 00:21:53,280 --> 00:21:55,959 Speaker 3: Still got a long way to go in getting a result, 377 00:21:56,280 --> 00:21:58,479 Speaker 3: but this is a massive, massive stroke should have been 378 00:21:58,840 --> 00:22:00,960 Speaker 3: This is bigger than Michael's biggest story of the week, 379 00:22:00,960 --> 00:22:03,080 Speaker 3: to be honest. But it's the sleeper story because we 380 00:22:03,160 --> 00:22:04,320 Speaker 3: just didn't talk much about it. 381 00:22:04,760 --> 00:22:10,159 Speaker 1: Michael, there's a good story, Sean. As for me, I 382 00:22:10,280 --> 00:22:13,600 Speaker 1: have never been one to pass up a good story 383 00:22:13,640 --> 00:22:19,560 Speaker 1: about bonds, oh dear, and this one fits perfectly like 384 00:22:19,640 --> 00:22:24,040 Speaker 1: a glove into the sleeper story category. Allow me to explain. 385 00:22:24,800 --> 00:22:28,879 Speaker 1: We learned this week, Adam, that more than one hundred 386 00:22:28,920 --> 00:22:34,879 Speaker 1: investors across five continents bought Australia's first ever green bond, 387 00:22:34,920 --> 00:22:40,119 Speaker 1: including fifteen institutions entirely new to Australian government bonds. The 388 00:22:40,200 --> 00:22:43,280 Speaker 1: final order book, this is all quite remarkable. Really, maybe 389 00:22:43,280 --> 00:22:45,640 Speaker 1: could have been in the remarkable category. The final order 390 00:22:45,680 --> 00:22:49,440 Speaker 1: book of the seven billion dollar ten year offer drew 391 00:22:49,480 --> 00:22:54,960 Speaker 1: twenty three billion dollars in bids. Wow. Two thirds were sold. 392 00:22:55,440 --> 00:23:01,240 Speaker 1: Wow Wow. Two thirds were sold to local call investors. 393 00:23:01,320 --> 00:23:05,239 Speaker 1: And the fascinating part of all of this, right is 394 00:23:05,240 --> 00:23:09,800 Speaker 1: that the Australian Office of Financial Management estimates that the 395 00:23:09,840 --> 00:23:15,919 Speaker 1: issue paid a greenium, a greenium of two basis points 396 00:23:15,920 --> 00:23:19,679 Speaker 1: over nominal bonds, which of course means, as we all 397 00:23:19,720 --> 00:23:24,640 Speaker 1: know sitting here in this room, that these investors are 398 00:23:24,680 --> 00:23:27,600 Speaker 1: willing to accept a slightly lower return to see their 399 00:23:27,680 --> 00:23:33,160 Speaker 1: money doing some good. Why is this a sleeper story? 400 00:23:34,080 --> 00:23:38,840 Speaker 1: Good question, nohlus, Michael, Good question, Michael, and thank you Adam. 401 00:23:39,400 --> 00:23:45,239 Speaker 1: Because it is the Australian government's first green bond, and 402 00:23:45,280 --> 00:23:50,880 Speaker 1: because this is a sign of the times, particularly when 403 00:23:50,920 --> 00:23:54,160 Speaker 1: we are talking about big investors here, super funds, who 404 00:23:54,240 --> 00:23:58,280 Speaker 1: need somewhere to put the billions and billions and billions 405 00:23:58,280 --> 00:24:02,000 Speaker 1: of dollars that we are all feeding in and Increasingly 406 00:24:02,080 --> 00:24:04,399 Speaker 1: members are wanting that money to not just earn a return, 407 00:24:04,840 --> 00:24:09,239 Speaker 1: but to make a difference to help society. And as 408 00:24:09,280 --> 00:24:11,800 Speaker 1: Sean said in Now Fear and Green newsletter this week, 409 00:24:12,080 --> 00:24:16,639 Speaker 1: these are Sean's own words. The success of the first 410 00:24:16,760 --> 00:24:21,160 Speaker 1: ever government green bond and the Greenian paid augurs well 411 00:24:21,480 --> 00:24:26,120 Speaker 1: for the future. That sounds like it's going to become 412 00:24:26,119 --> 00:24:29,479 Speaker 1: a bigger story further down the track. In Sean's own words, 413 00:24:30,359 --> 00:24:34,440 Speaker 1: it is a sleeper story because it's just getting started. 414 00:24:34,920 --> 00:24:37,439 Speaker 1: It is also a sleeper story Adam, that ticks every 415 00:24:37,640 --> 00:24:43,280 Speaker 1: single box in your criteria, Adam, subjective bias, Yes, because 416 00:24:43,320 --> 00:24:47,320 Speaker 1: you love bonds and you love the environment and various 417 00:24:47,359 --> 00:24:55,240 Speaker 1: other things. Economic impact because obviously I've explained why all 418 00:24:55,280 --> 00:24:58,480 Speaker 1: those other things that you look for that I can't remember, 419 00:24:58,840 --> 00:25:07,840 Speaker 1: but they are all ticks there. They are there in abundance, Adam. 420 00:25:07,960 --> 00:25:14,119 Speaker 2: Yes, screenium Bond's good. I just where it fell down 421 00:25:14,240 --> 00:25:18,199 Speaker 2: for me. Michael Yes, was on the sleeper element of it. 422 00:25:19,760 --> 00:25:24,040 Speaker 1: This is the first Australian government green bond and it 423 00:25:24,160 --> 00:25:28,440 Speaker 1: was severely oversubscribed, which tells you the demand is there. 424 00:25:28,720 --> 00:25:32,520 Speaker 1: This is going to be big, big, big, oh God. 425 00:25:33,960 --> 00:25:41,000 Speaker 2: Yes, Yes, Supplementary melodrama, well done. That the sleeper story 426 00:25:41,119 --> 00:25:46,800 Speaker 2: for me is really this same job, same pay legislation. 427 00:25:46,840 --> 00:25:49,879 Speaker 2: It only came in last year under the Fair Work Act. 428 00:25:50,280 --> 00:25:53,280 Speaker 2: And this is a big, big test case. 429 00:25:53,600 --> 00:25:56,080 Speaker 1: So big that everyone's talking about it, which makes it 430 00:25:56,119 --> 00:25:57,080 Speaker 1: not a sleeper story. 431 00:25:57,760 --> 00:26:01,320 Speaker 2: Well no, but this case is new and the outcome 432 00:26:01,400 --> 00:26:04,719 Speaker 2: is yet unknown, and so how this plays out is 433 00:26:05,119 --> 00:26:08,520 Speaker 2: very important and a sleeper story that anyway. That's why 434 00:26:08,600 --> 00:26:10,840 Speaker 2: I've judged it sleeper story of the week. 435 00:26:11,320 --> 00:26:14,320 Speaker 3: Excellent decision, that's all I can say. Leave it at then, 436 00:26:14,880 --> 00:26:18,240 Speaker 3: no feedback, Sean, No, no, Look, I think mine is 437 00:26:18,240 --> 00:26:20,400 Speaker 3: a much better story. But I like the Greenhiam story too, 438 00:26:20,400 --> 00:26:22,720 Speaker 3: you know, yeah, good story. 439 00:26:22,440 --> 00:26:24,679 Speaker 1: Good story. And I thought I'd also wedged you on 440 00:26:24,720 --> 00:26:27,200 Speaker 1: that one, Sean, because it was in your own words 441 00:26:27,240 --> 00:26:30,800 Speaker 1: from the newsletter, the Fear and Greed newsletter Fearangreed dot 442 00:26:30,800 --> 00:26:33,640 Speaker 1: com dot you sign up, pop your email addressing. And 443 00:26:33,880 --> 00:26:36,080 Speaker 1: I thought that there's no way I can be beaten 444 00:26:36,119 --> 00:26:38,959 Speaker 1: now because Sean pretty much acknowledged it's a sleeper story 445 00:26:39,000 --> 00:26:42,600 Speaker 1: in the newsletter. But of course, Sean, you weren't the judge. 446 00:26:42,720 --> 00:26:45,000 Speaker 1: Adam was, and who knows what he's going to like 447 00:26:45,359 --> 00:26:49,800 Speaker 1: you talk a lot, Michael. I am rather fond of 448 00:26:49,800 --> 00:26:50,680 Speaker 1: my own voice. 449 00:26:51,359 --> 00:26:54,440 Speaker 2: There's no real internal monologue, is there, Michael. 450 00:26:54,240 --> 00:26:57,600 Speaker 3: No, that's this. There is no internal monologue. We'll put Adam. 451 00:26:57,760 --> 00:27:01,120 Speaker 1: If there is a monologue, it is to be delivered publicly, 452 00:27:01,320 --> 00:27:06,120 Speaker 1: set out loud. Indeed, shall we, Sean, do you want 453 00:27:06,160 --> 00:27:08,600 Speaker 1: to go first for the favorite story? I think you should. 454 00:27:09,320 --> 00:27:13,600 Speaker 3: Sure, Sure, I mean, I'm not sure that it's my 455 00:27:13,720 --> 00:27:16,440 Speaker 3: favorite story, but it's certainly the most captivating story of 456 00:27:16,480 --> 00:27:20,240 Speaker 3: the week. It's the rise of the far right in 457 00:27:20,400 --> 00:27:26,600 Speaker 3: ultra nationalist parties in Europe, around North America, Europe. Michael, 458 00:27:27,440 --> 00:27:30,600 Speaker 3: this is great. If only listeners could see. Adam has 459 00:27:30,640 --> 00:27:35,720 Speaker 3: actually leaned in forward. Michael has leaned back and yawned. 460 00:27:36,320 --> 00:27:40,280 Speaker 1: It's not a yawn. It is my thoughtful pose. I'm 461 00:27:40,280 --> 00:27:44,440 Speaker 1: a thoughtful recliner Sean, and it's about politics. Of course, 462 00:27:44,480 --> 00:27:46,080 Speaker 1: I'm listening, please go. 463 00:27:46,160 --> 00:27:50,840 Speaker 3: Of course, European elections last weekend far right parties did really, 464 00:27:50,880 --> 00:27:53,359 Speaker 3: really well. They'll hold about a quarter of the seats 465 00:27:53,359 --> 00:27:56,479 Speaker 3: when the European Parliament next sits. That's much higher than 466 00:27:56,480 --> 00:27:59,879 Speaker 3: ever before. It's about twenty percent before big swings in France, Italy, Germany, 467 00:27:59,920 --> 00:28:02,399 Speaker 3: the Netherlands. The performance of the far right in France 468 00:28:02,440 --> 00:28:07,240 Speaker 3: triggered French President Emmanuel mccrn to call a snap election. 469 00:28:07,560 --> 00:28:10,560 Speaker 3: The European voting generally reflects not so much what's happening 470 00:28:10,600 --> 00:28:13,600 Speaker 3: in Europe, but what's happening locally in Macron's move is 471 00:28:13,600 --> 00:28:15,920 Speaker 3: a high risk move basically to cut off the far 472 00:28:16,040 --> 00:28:19,440 Speaker 3: right before they make any further gains. Mccron has made 473 00:28:19,560 --> 00:28:23,479 Speaker 3: the rather extraordinary core for political rivals to rally behind 474 00:28:23,560 --> 00:28:28,000 Speaker 3: his centrist party and fight what he calls extremist fever 475 00:28:28,080 --> 00:28:30,800 Speaker 3: so baths on the left end the right, these far left, 476 00:28:30,880 --> 00:28:35,439 Speaker 3: far right parties. The leader of the French mainstream Conservatives 477 00:28:35,520 --> 00:28:37,840 Speaker 3: was actually booted out of his party. So this is 478 00:28:37,840 --> 00:28:40,600 Speaker 3: the opposition to Macron booted out of his party for 479 00:28:40,720 --> 00:28:44,960 Speaker 3: suggesting a pact with the far right party of Marine 480 00:28:45,160 --> 00:28:50,520 Speaker 3: Le penn Politics in Europe is quite amazing at the moment, 481 00:28:50,640 --> 00:28:53,120 Speaker 3: exactly as North America, because we have the Donald Trump 482 00:28:53,240 --> 00:28:56,600 Speaker 3: Joe Biden thing going on now. The G seven met 483 00:28:56,760 --> 00:29:01,280 Speaker 3: this week basically we had people like Rushi Sunak from 484 00:29:01,280 --> 00:29:04,959 Speaker 3: the UK facing an election. Macron was there, the German 485 00:29:05,080 --> 00:29:09,080 Speaker 3: chancellors and under all sorts of political pressure. The Japanese 486 00:29:09,440 --> 00:29:12,880 Speaker 3: Prime minister is likely to be kicked out later this year. 487 00:29:13,880 --> 00:29:19,400 Speaker 3: The influence of right wing politics is just well, it's scary, 488 00:29:19,920 --> 00:29:22,800 Speaker 3: but it's absolutely captivating to watch. And that was really 489 00:29:22,920 --> 00:29:25,640 Speaker 3: highlighted by those elections in Europe last week, the G 490 00:29:25,760 --> 00:29:28,960 Speaker 3: seven this week, and what's happening with France and Germany 491 00:29:29,000 --> 00:29:34,080 Speaker 3: and Japan and of course the USA. I know it 492 00:29:34,160 --> 00:29:36,280 Speaker 3: was worthy, but I just I think that was a 493 00:29:36,360 --> 00:29:38,920 Speaker 3: very cool story, Michael. Over a year. 494 00:29:39,600 --> 00:29:41,640 Speaker 1: Look, I like to finish on a bit of good news, 495 00:29:42,280 --> 00:29:46,280 Speaker 1: and I particularly like to finish on a bit of 496 00:29:46,280 --> 00:29:49,760 Speaker 1: good news for Australian business and for the Australian economy 497 00:29:49,800 --> 00:29:52,640 Speaker 1: because I feel like that's just more true to the 498 00:29:52,680 --> 00:29:57,600 Speaker 1: criteria than say European politics. But I'm not not really 499 00:29:57,600 --> 00:30:00,440 Speaker 1: looking for the win. I'm just here to to put 500 00:30:00,480 --> 00:30:04,840 Speaker 1: forward a good story. What I liked this week was 501 00:30:04,920 --> 00:30:10,440 Speaker 1: the good news for the local wine industry, and that 502 00:30:10,560 --> 00:30:13,640 Speaker 1: good news was that Trade Minister Don Farrell said that 503 00:30:13,720 --> 00:30:18,240 Speaker 1: local wine makers have sold eighty six million dollars of 504 00:30:18,280 --> 00:30:21,760 Speaker 1: stock to Chinese consumers since April. Now, if you can 505 00:30:21,840 --> 00:30:26,120 Speaker 1: remember April, which wasn't actually that long ago, that was 506 00:30:26,160 --> 00:30:30,640 Speaker 1: when Beijing dropped its punitive tariffs on Ossi exports. Now 507 00:30:30,680 --> 00:30:35,520 Speaker 1: I love this story for two reasons. Number one, Ossie 508 00:30:35,520 --> 00:30:40,120 Speaker 1: wine copped and absolute hammering from these tariffs. So who 509 00:30:40,360 --> 00:30:44,720 Speaker 1: doesn't love seeing our companies getting back into China, which, 510 00:30:44,760 --> 00:30:47,600 Speaker 1: prior to the tariffs was our single biggest export market 511 00:30:47,640 --> 00:30:51,880 Speaker 1: for wine. But the other reason that I love it, 512 00:30:52,000 --> 00:30:54,640 Speaker 1: and Adam, I don't want to speak for you, but 513 00:30:54,720 --> 00:30:56,720 Speaker 1: I suspect this is also the reason why you will 514 00:30:56,720 --> 00:31:02,120 Speaker 1: love this too, is that when those tariffs were imposed, 515 00:31:02,720 --> 00:31:08,960 Speaker 1: the wine industry pivoted. They had to. They found new 516 00:31:09,200 --> 00:31:13,040 Speaker 1: export markets. They increased the amount of wine being sold 517 00:31:13,080 --> 00:31:17,120 Speaker 1: to the UK, to Singapore, to India, to Thailand, a 518 00:31:17,240 --> 00:31:22,720 Speaker 1: bunch of other countries. They diversified and arguably became more resilient. 519 00:31:23,720 --> 00:31:26,000 Speaker 1: Having said that, the industry, of course, isn't out of trouble. 520 00:31:26,120 --> 00:31:28,959 Speaker 1: Last year, a report found that Ossie winemakers have an 521 00:31:29,040 --> 00:31:32,320 Speaker 1: estimated two billion leaders of wine in storage, equivalent to 522 00:31:32,560 --> 00:31:36,520 Speaker 1: almost three billion bottles. So the news this week that 523 00:31:36,640 --> 00:31:40,160 Speaker 1: in just the last eight or nine weeks, eighty six 524 00:31:40,240 --> 00:31:42,360 Speaker 1: million dollars worth of wine has been sold to China, 525 00:31:42,880 --> 00:31:46,080 Speaker 1: while we've also got all of these other new markets 526 00:31:46,960 --> 00:31:50,120 Speaker 1: that Australian winemakers have been able to source and have 527 00:31:50,200 --> 00:31:53,840 Speaker 1: built up connections and relations. They have been innovative, That's 528 00:31:53,880 --> 00:31:57,440 Speaker 1: what they have been, Adam. They have been resilient and 529 00:31:57,640 --> 00:32:01,200 Speaker 1: innovative and now they are finally getting a bit of 530 00:32:01,200 --> 00:32:04,920 Speaker 1: good news back into China. Eighty six million dollars worth 531 00:32:04,960 --> 00:32:09,240 Speaker 1: of wine. Good news, no great news. My favorite story 532 00:32:09,800 --> 00:32:12,920 Speaker 1: of the week and if you are Australian it will 533 00:32:12,960 --> 00:32:15,640 Speaker 1: be yours too. Sorry, I didn't mean to. 534 00:32:15,920 --> 00:32:17,880 Speaker 2: Get quite smelodrama free. 535 00:32:17,760 --> 00:32:19,640 Speaker 1: Yet again nationalistic there at the end. 536 00:32:19,800 --> 00:32:27,000 Speaker 2: Sorry, Okay, both excellent stories. And I know we're not 537 00:32:27,040 --> 00:32:29,240 Speaker 2: a political show and this isn't a political comment, but 538 00:32:29,400 --> 00:32:32,280 Speaker 2: just making those observations Sean as you did, particularly about 539 00:32:32,440 --> 00:32:35,800 Speaker 2: France and Emmanuel Macron calling the snap election. You know, 540 00:32:35,920 --> 00:32:37,840 Speaker 2: sometimes you feel like if you listen to the noise, 541 00:32:37,920 --> 00:32:41,240 Speaker 2: the extremes seem to speak loudest, both on the far 542 00:32:41,360 --> 00:32:44,080 Speaker 2: left the file right, and so if you judged purely 543 00:32:44,120 --> 00:32:49,760 Speaker 2: on conviction and volume over content and ideas, the extremes, 544 00:32:49,840 --> 00:32:52,720 Speaker 2: you can see how there is appeal, but it does 545 00:32:52,840 --> 00:32:56,760 Speaker 2: the contest of ideas sometimes gets lost in that noise. 546 00:32:57,000 --> 00:33:00,160 Speaker 2: I think it is so interesting what is happening, and 547 00:33:00,200 --> 00:33:04,920 Speaker 2: it has massive impact changes of government on the economy 548 00:33:05,120 --> 00:33:07,440 Speaker 2: and impact on the world. So it is an incredible 549 00:33:07,480 --> 00:33:12,040 Speaker 2: story bringing it to Australia and wines and for all 550 00:33:12,040 --> 00:33:14,880 Speaker 2: the reasons you mentioned, Michael, I think you have to 551 00:33:14,920 --> 00:33:16,720 Speaker 2: win this one for favorite story of the week. It's 552 00:33:16,760 --> 00:33:18,520 Speaker 2: just there's so much good in it and where we 553 00:33:18,520 --> 00:33:21,280 Speaker 2: were was in a very bleak place for so many 554 00:33:21,440 --> 00:33:24,680 Speaker 2: vineyards and wine producers. So it's just such a great 555 00:33:24,680 --> 00:33:25,840 Speaker 2: turnaround story. 556 00:33:26,120 --> 00:33:30,400 Speaker 1: And very innovative and resilient, so very innovative too. Yes, 557 00:33:31,680 --> 00:33:33,680 Speaker 1: thank you. I should actually just accept the win rather 558 00:33:33,720 --> 00:33:36,560 Speaker 1: than just seek praise on the various buzzwords I used. 559 00:33:37,640 --> 00:33:39,520 Speaker 1: So what are we two all? Do we have a 560 00:33:40,160 --> 00:33:43,640 Speaker 1: two all? Do we have a breakdown? Do we have 561 00:33:43,680 --> 00:33:45,720 Speaker 1: a winner? Actually that's what we really need. 562 00:33:46,120 --> 00:33:50,640 Speaker 2: Well we do? We do have a winner? Michael eighty 563 00:33:50,680 --> 00:33:55,520 Speaker 2: eight points, Sean ninety one points. 564 00:33:56,120 --> 00:34:00,920 Speaker 1: Oh no, it's because you hate you hate business access stories. 565 00:34:01,400 --> 00:34:05,280 Speaker 1: Don't you like in video? No? I mean clearly, I'm 566 00:34:05,280 --> 00:34:07,320 Speaker 1: assuming that's the one that I've been marked down on. 567 00:34:07,800 --> 00:34:12,320 Speaker 2: But calling tech giants and their growth like a remarkable story, 568 00:34:12,800 --> 00:34:16,640 Speaker 2: it's just become less remarkable for some time now, so 569 00:34:16,719 --> 00:34:20,719 Speaker 2: many companies departing the ASX and so few on the horizon. 570 00:34:20,880 --> 00:34:22,960 Speaker 2: Is a really significant change. 571 00:34:23,560 --> 00:34:29,360 Speaker 1: Hmm, just like it was last year. Sorry, just a 572 00:34:29,480 --> 00:34:32,359 Speaker 1: minus the internal monologue again. Yeah, yeah, there it is. 573 00:34:32,440 --> 00:34:34,919 Speaker 1: Oh my goodness, Okay, well done, Sean. 574 00:34:34,800 --> 00:34:38,120 Speaker 3: Thank you, Michael, thank you. I don't know how to 575 00:34:38,160 --> 00:34:41,399 Speaker 3: accept it, Like I I think you've got. I had 576 00:34:41,400 --> 00:34:46,439 Speaker 3: a moral victory in explaining economics to us, like I'm 577 00:34:46,480 --> 00:34:49,640 Speaker 3: in fact, Adam, Adam, I know this is kind of 578 00:34:49,640 --> 00:34:52,799 Speaker 3: not what we normally do. Yeah, but I'm happy. I'm 579 00:34:52,840 --> 00:34:56,680 Speaker 3: happy knowing they won. I'm happy to concede. 580 00:34:58,120 --> 00:35:01,840 Speaker 1: That is the most generous thing you've ever done. Sean. 581 00:35:02,520 --> 00:35:06,800 Speaker 1: You are just a deeply kind person. 582 00:35:07,160 --> 00:35:10,960 Speaker 2: I love that knowing that I won. I'm happy to concede. 583 00:35:12,040 --> 00:35:15,759 Speaker 1: Oh college, all right, well you know what, let's just 584 00:35:15,840 --> 00:35:16,600 Speaker 1: leave it right there. 585 00:35:16,800 --> 00:35:19,440 Speaker 2: Thank you, Adam, Thank you Michael, and thank you Sean. 586 00:35:20,080 --> 00:35:22,440 Speaker 1: And make sure you're following the podcast and please join 587 00:35:22,520 --> 00:35:27,440 Speaker 1: us online on LinkedIn, Instagram, Facebook, X and TikTok. I'm 588 00:35:27,440 --> 00:35:30,480 Speaker 1: Michael Thompson and Avisphear and Greed. Have a great weekend.