1 00:00:04,120 --> 00:00:06,760 Speaker 1: Welcome to the Saturday edition of the Fast five. Business 2 00:00:06,760 --> 00:00:09,320 Speaker 1: News by Fear and Greed. Are Michael Thompson and Hello 3 00:00:09,400 --> 00:00:12,719 Speaker 1: Sean Aylmer. Hello Michael Sean. On weekdays, it's all about 4 00:00:12,720 --> 00:00:15,000 Speaker 1: the Fast five, the top five business stories in five minutes. 5 00:00:15,040 --> 00:00:17,360 Speaker 1: On the weekend, though we still keep it to five minutes, 6 00:00:17,360 --> 00:00:19,880 Speaker 1: but we're going to pick out the biggest business story 7 00:00:19,960 --> 00:00:23,040 Speaker 1: of the week, the most remarkable business story, a mystery 8 00:00:23,079 --> 00:00:25,760 Speaker 1: category that we change every week, and then our favorite 9 00:00:25,760 --> 00:00:29,040 Speaker 1: business related story. We will jump into it. But before 10 00:00:29,080 --> 00:00:30,840 Speaker 1: we do that, a very quick reminder that if you're 11 00:00:30,840 --> 00:00:33,680 Speaker 1: listening on Spotify and you're listening through the Your Daily 12 00:00:33,720 --> 00:00:36,960 Speaker 1: Drive playlist, please hit follow on the Fast five. The 13 00:00:37,000 --> 00:00:39,320 Speaker 1: Your Daily Drive playlist is going to be disappearing soon 14 00:00:39,440 --> 00:00:42,000 Speaker 1: and you will probably not be able to find the 15 00:00:42,000 --> 00:00:44,600 Speaker 1: Fast five as easily, so just hit follow. Let's jump 16 00:00:44,600 --> 00:00:46,800 Speaker 1: straight into it, shall I go first for the biggest story? 17 00:00:46,800 --> 00:00:47,320 Speaker 2: Sure? So? 18 00:00:48,080 --> 00:00:51,920 Speaker 1: Inflation, right, So we've got the monthly inflation figures this 19 00:00:52,680 --> 00:00:57,520 Speaker 1: week that was for January, and underlying inflation actually rose, 20 00:00:57,720 --> 00:00:59,840 Speaker 1: it went from three point three percent to three point 21 00:00:59,840 --> 00:01:03,680 Speaker 1: five four percent. And headline CPI, which everyone thought a 22 00:01:03,680 --> 00:01:06,200 Speaker 1: lot of economists thought was going to slip a bit 23 00:01:06,240 --> 00:01:08,800 Speaker 1: down to three point seven percent, actually stayed steady at 24 00:01:08,800 --> 00:01:12,640 Speaker 1: three point eight percent. Inflation is being very, very stubborn. 25 00:01:12,840 --> 00:01:14,560 Speaker 1: It is not going the way we need it to. 26 00:01:14,720 --> 00:01:17,520 Speaker 1: Housing is the main culprit. It really does kind of 27 00:01:17,520 --> 00:01:22,120 Speaker 1: put on the agenda an interest rate hike, probably not 28 00:01:22,200 --> 00:01:25,880 Speaker 1: in March, maybe at the next meeting, then after that 29 00:01:25,920 --> 00:01:29,120 Speaker 1: in May, after we get the quarterly inflation data. We 30 00:01:29,160 --> 00:01:32,120 Speaker 1: did also hear from Michelle Bullock, who who through the 31 00:01:32,120 --> 00:01:34,480 Speaker 1: week she she kind of was easing those concerns a 32 00:01:34,520 --> 00:01:37,000 Speaker 1: little bit, just basically saying that inflation isn't just taking 33 00:01:37,040 --> 00:01:40,080 Speaker 1: off again. Yes it is elevated, Yes the labor market 34 00:01:40,160 --> 00:01:43,960 Speaker 1: is tight, and yes the Reserve Bank has a difficult 35 00:01:44,000 --> 00:01:45,480 Speaker 1: job to do in trying to figure out which way 36 00:01:45,520 --> 00:01:49,120 Speaker 1: to go. So not the greatest inflation news this week, 37 00:01:49,160 --> 00:01:51,440 Speaker 1: and may be more likely that we'll see another rate hike. 38 00:01:51,480 --> 00:01:55,040 Speaker 2: Sean, Well, my biggest story of the week is related 39 00:01:55,080 --> 00:01:58,120 Speaker 2: to that because given everything you've said, you would think 40 00:01:58,160 --> 00:02:01,800 Speaker 2: that equity markets would fall, but uh, a couple of 41 00:02:01,840 --> 00:02:06,440 Speaker 2: times this week the ASEX two hundred hit a record high. 42 00:02:06,560 --> 00:02:09,400 Speaker 2: Now we've had some cracking earnings out this week, Woolies 43 00:02:09,440 --> 00:02:11,920 Speaker 2: and Quantas will talk about in a moment. Wise Tech Global, 44 00:02:11,960 --> 00:02:16,760 Speaker 2: Forteskeu Metals Group some really big moves after results. So 45 00:02:16,960 --> 00:02:20,200 Speaker 2: share price is jumping ten percent, falling ten percent. Some 46 00:02:20,360 --> 00:02:23,720 Speaker 2: of the consumer discretionary has been a bit how's your 47 00:02:23,720 --> 00:02:26,120 Speaker 2: mother to be perfectly honest? Not so good, which is 48 00:02:26,160 --> 00:02:29,320 Speaker 2: interesting because that fits into that wholesale spending and the 49 00:02:29,360 --> 00:02:32,840 Speaker 2: interest rates story. But certainly big week for markets, particularly 50 00:02:32,840 --> 00:02:34,680 Speaker 2: because the ASEX two hundred hit a new record. 51 00:02:35,000 --> 00:02:38,840 Speaker 1: Yeah, absolutely, all right, most remarkable. What did you like? 52 00:02:39,560 --> 00:02:42,760 Speaker 2: Look? I think the fact that the government is seriously 53 00:02:42,800 --> 00:02:48,400 Speaker 2: considering considering changing the capital gains tax concession for property investors. 54 00:02:48,720 --> 00:02:50,840 Speaker 2: This week we found out that Treasury's doing work kind 55 00:02:50,880 --> 00:02:53,360 Speaker 2: of taking it from fifty to thirty three percent. Commonealth 56 00:02:53,360 --> 00:02:55,960 Speaker 2: Bank boss Matt Common said he didn't disagree with it. 57 00:02:56,280 --> 00:02:59,320 Speaker 2: That's quite the comment, given he is the country's biggest 58 00:02:59,320 --> 00:03:04,160 Speaker 2: home lender. Guys like Henry Sorry, Bill Kelty, form ac 59 00:03:04,320 --> 00:03:08,000 Speaker 2: TU boss Ken Henry form A, boss of Treasury, Bernie Fraser, 60 00:03:08,120 --> 00:03:12,240 Speaker 2: former boss of RBA, all said yep, we should somewhat 61 00:03:12,720 --> 00:03:16,600 Speaker 2: scale back capal gains tax concessions for property investors. Basically, 62 00:03:16,639 --> 00:03:18,960 Speaker 2: this is how politics works. Government's very happy for this 63 00:03:19,000 --> 00:03:21,840 Speaker 2: debate to be had before it makes it official, probably 64 00:03:21,880 --> 00:03:23,799 Speaker 2: in the budget, but reckon it's going to happen. 65 00:03:24,400 --> 00:03:27,160 Speaker 1: The other Yeah, that is remarkable, especially if it does 66 00:03:27,200 --> 00:03:29,120 Speaker 1: actually pan out the way that it looks like it will. 67 00:03:29,320 --> 00:03:32,560 Speaker 1: The other remarkable one this week was Nvidia's results. So 68 00:03:32,639 --> 00:03:34,400 Speaker 1: it had a quarterly profit I think of forty three 69 00:03:34,480 --> 00:03:37,520 Speaker 1: billion US dollars. It pushed its annual profit then to 70 00:03:37,600 --> 00:03:41,800 Speaker 1: one hundred and twenty billion US. Just these numbers are 71 00:03:41,880 --> 00:03:45,280 Speaker 1: just staggering in the size of them, and they're expecting 72 00:03:45,280 --> 00:03:47,800 Speaker 1: it to get even bigger, a big jump up in 73 00:03:48,480 --> 00:03:51,600 Speaker 1: a revenue for the quarter from last quarter to the 74 00:03:51,680 --> 00:03:53,560 Speaker 1: one that we're currently in at the moment. That the 75 00:03:53,640 --> 00:03:55,760 Speaker 1: end result of all of this, right is that the 76 00:03:55,800 --> 00:03:58,920 Speaker 1: AI boom is booming, at least as far as the 77 00:03:58,960 --> 00:04:01,840 Speaker 1: hardware is can and video supplies. I think that's something 78 00:04:01,880 --> 00:04:05,160 Speaker 1: like ninety three percent of the microchip market in this 79 00:04:05,200 --> 00:04:09,200 Speaker 1: particular space. And you get these big tech companies that 80 00:04:09,400 --> 00:04:13,240 Speaker 1: just cannot get enough. They are spending hundreds of billions 81 00:04:13,240 --> 00:04:17,040 Speaker 1: of dollars, so the demand there is very strong. It 82 00:04:17,120 --> 00:04:20,160 Speaker 1: did initially ease some fears around kind of the demand 83 00:04:20,920 --> 00:04:23,680 Speaker 1: side of the boom, and that helps the local market, 84 00:04:23,720 --> 00:04:26,880 Speaker 1: the local tech stocks. But then kind of those fears 85 00:04:26,880 --> 00:04:29,360 Speaker 1: started to creep back in again about actually, all right, 86 00:04:29,440 --> 00:04:31,800 Speaker 1: but what does it mean then for the companies that 87 00:04:31,880 --> 00:04:34,080 Speaker 1: are going to be affected by the AI boom, the 88 00:04:34,080 --> 00:04:37,760 Speaker 1: software companies for instance, and are the big tech company 89 00:04:37,839 --> 00:04:39,480 Speaker 1: is actually going to be able to make any money 90 00:04:39,560 --> 00:04:43,039 Speaker 1: out of what they're doing? So good demand? Don't know 91 00:04:43,040 --> 00:04:44,960 Speaker 1: whether it's actually solved the question of whether. 92 00:04:44,800 --> 00:04:47,000 Speaker 2: Or not this is a bubble yet sean big our 93 00:04:47,080 --> 00:04:49,960 Speaker 2: main question, Can I tell you our mystery category the 94 00:04:50,320 --> 00:04:53,640 Speaker 2: MVP CEO over the last eight months, I've got a 95 00:04:53,640 --> 00:04:57,400 Speaker 2: pretty good contestant, Amanda bard War, the woman the first 96 00:04:57,480 --> 00:05:01,280 Speaker 2: woman in fact to run Woolworths. It's share price hit 97 00:05:01,320 --> 00:05:04,760 Speaker 2: a seventeen month high this week. It jumped twelve percent 98 00:05:05,160 --> 00:05:07,760 Speaker 2: on one day. It ended up closing up about nine 99 00:05:07,760 --> 00:05:10,080 Speaker 2: percent or so on the back of a strong profit 100 00:05:10,120 --> 00:05:12,279 Speaker 2: result biggest one day rice for bullies in thirty years. 101 00:05:12,279 --> 00:05:16,880 Speaker 2: Goods at a numbers profit, higher sales, higher food sales, 102 00:05:16,880 --> 00:05:20,240 Speaker 2: particularly higher online grocery sales were higher. Now, this is 103 00:05:20,360 --> 00:05:23,440 Speaker 2: a company whose boss, Brad Banducci, stormed out of a 104 00:05:23,480 --> 00:05:26,160 Speaker 2: four corners interview. He ultimately left the company. Amanda Bard 105 00:05:26,480 --> 00:05:28,240 Speaker 2: was left with it still a long way to go 106 00:05:28,279 --> 00:05:31,120 Speaker 2: for Woollies. They've still got reputational issues, They've still got 107 00:05:31,279 --> 00:05:32,919 Speaker 2: their case in front of the a triple C to 108 00:05:32,920 --> 00:05:36,000 Speaker 2: be heard. But wow, it has turned around, at least 109 00:05:36,080 --> 00:05:36,839 Speaker 2: for shareholders. 110 00:05:37,200 --> 00:05:42,600 Speaker 1: Yeah, it's an incredible story. So though Sean is Vanessa 111 00:05:42,680 --> 00:05:45,560 Speaker 1: Hudson's time at Quantas, all right, I'm going to put 112 00:05:45,600 --> 00:05:47,360 Speaker 1: aside my bias. I love planes, But if you just 113 00:05:47,400 --> 00:05:50,599 Speaker 1: put aside that this is it's an incredible story. Record 114 00:05:50,720 --> 00:05:52,839 Speaker 1: underlying profit of one and a half billion dollars for 115 00:05:52,880 --> 00:05:55,640 Speaker 1: the half we heard that this week. Yes, there was 116 00:05:55,760 --> 00:05:58,359 Speaker 1: a nine percent fall in share price after those results 117 00:05:58,400 --> 00:06:01,520 Speaker 1: came out. That's largely due to a pretty uncertain bit 118 00:06:01,560 --> 00:06:05,159 Speaker 1: of a wobbly international outlook. Very strong domestic business, less 119 00:06:05,240 --> 00:06:08,400 Speaker 1: so internationally. But the big picture here, and if we're 120 00:06:08,440 --> 00:06:10,320 Speaker 1: talking kind of over the last eighteen months two and 121 00:06:10,360 --> 00:06:14,039 Speaker 1: a half years, Quantas has share prices up one hundred 122 00:06:14,040 --> 00:06:16,600 Speaker 1: and twenty percent since October twenty twenty three, since the 123 00:06:16,680 --> 00:06:19,680 Speaker 1: days of Alan Joyce. And most importantly I would almost say, 124 00:06:19,720 --> 00:06:23,000 Speaker 1: is that the customer satisfaction scores have rebounded. Staff engagement 125 00:06:23,040 --> 00:06:26,479 Speaker 1: is up because Quantas was in serious, serious trouble. But 126 00:06:26,640 --> 00:06:29,120 Speaker 1: things are turning around, and it is Vanessa Hudson as 127 00:06:29,200 --> 00:06:31,760 Speaker 1: CEO who's done that. It is a pretty incredible story. 128 00:06:32,440 --> 00:06:34,600 Speaker 2: Do you think we've both got our favor the favorite story? 129 00:06:34,920 --> 00:06:36,200 Speaker 1: I think we might be aligned on it. 130 00:06:36,279 --> 00:06:39,680 Speaker 2: Go for it. Donald Trump's State of the Union address 131 00:06:40,120 --> 00:06:43,720 Speaker 2: longest on record, one hundred and seven minutes. We had Heckler's, 132 00:06:43,760 --> 00:06:48,440 Speaker 2: we had ejections, we had very pointed comments from Donald 133 00:06:48,480 --> 00:06:51,400 Speaker 2: Trump on issues from illegal aliens to Supreme Court judge's 134 00:06:51,440 --> 00:06:56,480 Speaker 2: plenty of raithmetas. My favorite comment from Donald Trump. Our 135 00:06:56,560 --> 00:06:58,760 Speaker 2: country is winning again. In fact, we're winning so much 136 00:06:58,800 --> 00:07:00,960 Speaker 2: that we really don't know what to do about it. 137 00:07:01,160 --> 00:07:03,920 Speaker 2: People are asking me, please, please, please, mister President. We're 138 00:07:03,960 --> 00:07:07,919 Speaker 2: winning too much. We can't take it anymore. End quote. Wow, 139 00:07:08,120 --> 00:07:08,919 Speaker 2: what a spectacle. 140 00:07:09,279 --> 00:07:11,280 Speaker 1: I just love the theater of it all. Five minutes 141 00:07:11,320 --> 00:07:12,720 Speaker 1: and pretty much everything you need to know in the 142 00:07:12,720 --> 00:07:15,320 Speaker 1: world of business. Thank you, Sean, Thank you Michael. Don't 143 00:07:15,360 --> 00:07:17,520 Speaker 1: forget to hit follow on the podcast and head along 144 00:07:17,560 --> 00:07:19,680 Speaker 1: to Fearandgreed dot com dot au to sign up for 145 00:07:19,720 --> 00:07:22,360 Speaker 1: our free daily newsletter. I'm Michael Thompson and this is 146 00:07:22,400 --> 00:07:24,360 Speaker 1: the past five business news by fear and greed.