1 00:00:05,920 --> 00:00:08,720 Sean Aylmer: Welcome to the Fear and Greed Business Interview. I'm Sean Aylmer. 2 00:00:08,920 --> 00:00:12,720 Sean Aylmer: Westpac has reported a slight deep in first half earnings, 3 00:00:12,760 --> 00:00:15,200 Sean Aylmer: with an interim profit of three point three billion dollars, 4 00:00:15,240 --> 00:00:17,279 Sean Aylmer: down just a touch on the same period last year. 5 00:00:17,600 --> 00:00:20,360 Sean Aylmer: The result came in slightly blow expectations, with the bank 6 00:00:20,440 --> 00:00:23,000 Sean Aylmer: declaring and interim dividend of seventy six cents per share. 7 00:00:23,480 --> 00:00:26,600 Sean Aylmer: The good news fewer mortgage customers are struggling to make 8 00:00:26,600 --> 00:00:30,440 Sean Aylmer: their payments, and Westpac's also seen strong growth in business landing. 9 00:00:30,480 --> 00:00:33,360 Sean Aylmer: Anthony Miller is the CEO of Westpac. Anthony, Welcome to 10 00:00:33,400 --> 00:00:33,960 Sean Aylmer: Fear and Greed. 11 00:00:34,280 --> 00:00:35,600 Anthony Miller: Thanks Sean. Great to be here. 12 00:00:36,080 --> 00:00:38,960 Sean Aylmer: The highlight and the low light from the result for you. 13 00:00:40,200 --> 00:00:42,760 Anthony Miller: The highlight is that I think at last we can 14 00:00:42,840 --> 00:00:46,320 Anthony Miller: start to see some positivity in terms of, you know, 15 00:00:46,400 --> 00:00:50,880 Anthony Miller: the reduction in stress levels within the business book, delinquencies 16 00:00:50,960 --> 00:00:53,840 Anthony Miller: within the mortgage book, and then you know, and so 17 00:00:53,920 --> 00:00:56,240 Anthony Miller: that's a positive. That just means things are starting to prove. 18 00:00:56,240 --> 00:00:59,040 Anthony Miller: That's not to diminish or devalue the fact that it's 19 00:00:59,080 --> 00:01:01,760 Anthony Miller: still pretty hard going out there, but that's a positive 20 00:01:02,640 --> 00:01:05,880 Anthony Miller: and also very positive to see small businesses just starting 21 00:01:05,920 --> 00:01:08,399 Anthony Miller: to get back on their feet, so to speak, in 22 00:01:08,480 --> 00:01:10,600 Anthony Miller: terms of their free cash flow position. So I really 23 00:01:10,640 --> 00:01:13,920 Anthony Miller: like that aspect of the result, and that lines up 24 00:01:13,959 --> 00:01:15,560 Anthony Miller: also with the fact that we've just got a really 25 00:01:15,600 --> 00:01:17,679 Anthony Miller: strong balance sheet and we're ready to go in case 26 00:01:17,680 --> 00:01:21,400 Anthony Miller: people need help. The challenge on the other side is 27 00:01:21,640 --> 00:01:24,480 Anthony Miller: that there's so much more that we want to get done, 28 00:01:24,560 --> 00:01:26,120 Anthony Miller: and it's just a question of getting it done in 29 00:01:26,200 --> 00:01:28,560 Anthony Miller: the right priority. And so you know, costs are up 30 00:01:28,600 --> 00:01:31,440 Anthony Miller: three percent. I need to be very disciplined around our 31 00:01:31,480 --> 00:01:34,240 Anthony Miller: costs as we go forward, but it costs her up, 32 00:01:34,280 --> 00:01:36,800 Anthony Miller: and they were up necessarily because I've got to invest 33 00:01:36,840 --> 00:01:39,200 Anthony Miller: in a few more bankers and make sure we've got 34 00:01:39,240 --> 00:01:42,880 Anthony Miller: the right resources out there in the marketplace. And also 35 00:01:43,319 --> 00:01:46,120 Anthony Miller: I've got to get you done. And so unit's the 36 00:01:46,200 --> 00:01:49,840 Anthony Miller: other challenge. So while it's a necessary spend, it's still 37 00:01:50,480 --> 00:01:54,400 Anthony Miller: frustrating in terms of it's outcome for the shareholder. But nevertheless, 38 00:01:54,840 --> 00:01:56,720 Anthony Miller: we're thinking long term and we're going after it. 39 00:01:57,000 --> 00:01:59,280 Sean Aylmer: Westpac UNITE, I'll just explain to listeners, is actually the 40 00:01:59,360 --> 00:02:02,440 Sean Aylmer: spending on bringing the technology stacks together effectively. That's right, 41 00:02:02,520 --> 00:02:05,360 Sean Aylmer: because Westpac is a conglomeration of a number of banks 42 00:02:05,400 --> 00:02:07,720 Sean Aylmer: over many years, really hasn't been done, and this is 43 00:02:07,760 --> 00:02:10,239 Sean Aylmer: one of your babies to bring it together. At the 44 00:02:10,360 --> 00:02:13,080 Sean Aylmer: end of that process, how much better or will it 45 00:02:13,120 --> 00:02:17,080 Sean Aylmer: be better Westpac's technology for we users compared to the 46 00:02:17,080 --> 00:02:17,840 Sean Aylmer: other banks. 47 00:02:18,440 --> 00:02:22,280 Anthony Miller: Well, that's a really good summary of it. Soon, so 48 00:02:22,360 --> 00:02:24,920 Anthony Miller: thank you for reading the materials in relation to UNITE 49 00:02:24,960 --> 00:02:27,920 Anthony Miller: at Westpac. Look at the end of your night, what 50 00:02:28,000 --> 00:02:30,880 Anthony Miller: will happen is that rather than us have a multitude 51 00:02:30,880 --> 00:02:33,760 Anthony Miller: of bank systems and a multitude of ways in which 52 00:02:33,800 --> 00:02:38,640 Anthony Miller: we might do credit cards, we do deposit accounts, mortgages, 53 00:02:38,680 --> 00:02:43,400 Anthony Miller: we'll be doing it one way, on one system, following 54 00:02:43,440 --> 00:02:46,120 Anthony Miller: one process. And the outcome of that is that we'll 55 00:02:46,120 --> 00:02:49,079 Anthony Miller: be able to run the bank faster, we'll be able 56 00:02:49,120 --> 00:02:51,560 Anthony Miller: to run the bank more cheaply, we'll be able to 57 00:02:51,639 --> 00:02:53,800 Anthony Miller: change things more cheaply, and we'll be able to do 58 00:02:53,840 --> 00:02:56,640 Anthony Miller: it all without introducing any risk. And so what that 59 00:02:56,680 --> 00:02:59,880 Anthony Miller: then allows us is to go very fast in make 60 00:03:00,240 --> 00:03:04,679 Anthony Miller: things better, delivering better services, better products and better outcomes 61 00:03:04,680 --> 00:03:08,560 Anthony Miller: for the customer. And so that's that UNITE gets us 62 00:03:08,600 --> 00:03:10,960 Anthony Miller: to a point where we can really then start to 63 00:03:11,080 --> 00:03:17,040 Anthony Miller: layer in some incremental service value and product features because 64 00:03:17,040 --> 00:03:20,720 Anthony Miller: we're doing things one way, and so that's that's what 65 00:03:20,800 --> 00:03:22,920 Anthony Miller: Unite delivers for us. And then in other parts of 66 00:03:22,919 --> 00:03:25,720 Anthony Miller: the bank where we have already everything done one way 67 00:03:25,760 --> 00:03:28,880 Anthony Miller: on one system, we're investing at the moment and creating 68 00:03:28,880 --> 00:03:33,480 Anthony Miller: some really exciting new propositions, particularly in the institutional bank 69 00:03:33,960 --> 00:03:35,120 Anthony Miller: and also the business bank. 70 00:03:35,560 --> 00:03:37,040 Sean Aylmer: Okay, I want to get to the big picture in 71 00:03:37,040 --> 00:03:40,600 Sean Aylmer: a moment, your net interest margin, effectively your profit margins 72 00:03:40,600 --> 00:03:44,600 Sean Aylmer: for your vanilla banking let's say steady, I think maybe 73 00:03:44,640 --> 00:03:51,040 Sean Aylmer: down a touch. Where where do banks get there? How 74 00:03:51,080 --> 00:03:53,360 Sean Aylmer: do you increase profitability when you've got this cost side 75 00:03:53,360 --> 00:03:55,880 Sean Aylmer: that's so tough, and I think when I read it, 76 00:03:55,960 --> 00:03:58,800 Sean Aylmer: your forecast for credit growth has actually come down a 77 00:03:58,800 --> 00:04:01,520 Sean Aylmer: bit too. So hand is bank like Westpac, which is 78 00:04:01,520 --> 00:04:04,760 Sean Aylmer: this big organization, kind of get that growth, get that 79 00:04:05,080 --> 00:04:06,480 Sean Aylmer: improvement in profit margins. 80 00:04:06,560 --> 00:04:08,720 Anthony Miller: Well, that's and that's the challenge, you know, Sean, that's 81 00:04:08,720 --> 00:04:10,840 Anthony Miller: the challenge in front of me every day. How do 82 00:04:10,920 --> 00:04:14,560 Anthony Miller: I lift revenue? How do I grow revenue without, if 83 00:04:14,560 --> 00:04:17,559 Anthony Miller: you will, dragging costs up? And one of the areas 84 00:04:17,600 --> 00:04:19,920 Anthony Miller: this as an example to show what we're doing and 85 00:04:19,960 --> 00:04:22,400 Anthony Miller: where the opportunities are for Westpac, particularly given where it 86 00:04:22,480 --> 00:04:24,919 Anthony Miller: is at the moment is in business bank. You know, 87 00:04:24,960 --> 00:04:28,640 Anthony Miller: we provide our business bank customers with a loan, we 88 00:04:28,760 --> 00:04:31,200 Anthony Miller: provide them with a transactional account, but there's all these 89 00:04:31,320 --> 00:04:33,880 Anthony Miller: other things that if they are doing they have a 90 00:04:33,920 --> 00:04:35,800 Anthony Miller: transaction account with us, and they have alone with us, 91 00:04:36,080 --> 00:04:38,040 Anthony Miller: all these other things we should be doing for them. 92 00:04:38,040 --> 00:04:41,240 Anthony Miller: And so, for example, the number of efcts transactions we 93 00:04:41,279 --> 00:04:43,440 Anthony Miller: do for our business bank customers is about half of 94 00:04:43,520 --> 00:04:46,200 Anthony Miller: what our peers are. So what we can and should 95 00:04:46,200 --> 00:04:49,080 Anthony Miller: be doing is more more of those services, more of 96 00:04:49,120 --> 00:04:52,360 Anthony Miller: those businesses, more of that business you know, for our 97 00:04:52,360 --> 00:04:55,359 Anthony Miller: existing customers, and we can grow revenue without having to 98 00:04:55,800 --> 00:04:59,680 Anthony Miller: introduce new risk you know, introduce new products, introduce new systems, 99 00:04:59,720 --> 00:05:01,919 Anthony Miller: and so so that's the stuff that we've got to 100 00:05:01,920 --> 00:05:04,000 Anthony Miller: focus on, and we are after that in terms of 101 00:05:04,040 --> 00:05:06,000 Anthony Miller: business bank. Likewise, there's more we can do in the 102 00:05:06,040 --> 00:05:08,919 Anthony Miller: institutional bank, and i'd say also in the context of 103 00:05:08,960 --> 00:05:12,719 Anthony Miller: consumer in addition to doing the mortgage, which is a tough, 104 00:05:13,360 --> 00:05:16,880 Anthony Miller: low returning product for the bank, what are the other 105 00:05:16,920 --> 00:05:19,159 Anthony Miller: things we can be doing for our customers, And that's 106 00:05:19,240 --> 00:05:24,120 Anthony Miller: new accounts, new style our savings accounts, new personal lending, 107 00:05:24,480 --> 00:05:28,040 Anthony Miller: new card, new card features, etc. And so it's about 108 00:05:28,040 --> 00:05:31,880 Anthony Miller: how do we add these other features that hopefully customers 109 00:05:31,880 --> 00:05:34,960 Anthony Miller: really value and appreciate, and that's how we then grow revenue. 110 00:05:35,200 --> 00:05:37,200 Sean Aylmer: Now we're not an investment podcast, so I'm not asking 111 00:05:37,240 --> 00:05:38,640 Sean Aylmer: you what's going to have you to the share price, 112 00:05:38,680 --> 00:05:41,640 Sean Aylmer: and anyone listening get your own financial advice before making 113 00:05:41,680 --> 00:05:44,760 Sean Aylmer: any investment decisions. When your share price is up twenty 114 00:05:44,800 --> 00:05:47,680 Sean Aylmer: percent or more in the last twelve months, notwithstanding a 115 00:05:47,680 --> 00:05:51,480 Sean Aylmer: bit of a blit today, how do you keep that going? 116 00:05:51,760 --> 00:05:54,480 Sean Aylmer: Anthony Miller see Westpac? How do you keep that running? 117 00:05:55,400 --> 00:05:58,440 Anthony Miller: Well, Look, my focus has got to be about what's 118 00:05:58,520 --> 00:06:01,159 Anthony Miller: the strategy for the banks, the right way for me 119 00:06:01,400 --> 00:06:05,359 Anthony Miller: to take the bank forward and grow revenue, grow the 120 00:06:05,440 --> 00:06:07,880 Anthony Miller: returns for shareholders, And so that's what I'm focused on. 121 00:06:07,920 --> 00:06:11,560 Anthony Miller: And then, of course it's critical that that vision we 122 00:06:11,720 --> 00:06:14,760 Anthony Miller: have and that path we want to follow is shared 123 00:06:14,800 --> 00:06:16,800 Anthony Miller: with the market. And then it's entirely up to the 124 00:06:16,800 --> 00:06:19,400 Anthony Miller: market to make that decision as to whether they buy 125 00:06:19,440 --> 00:06:22,440 Anthony Miller: our shares, whether they believe in that vision we have, 126 00:06:22,640 --> 00:06:25,520 Anthony Miller: they believe in that strategy that we're pursuing. And so 127 00:06:25,560 --> 00:06:28,400 Anthony Miller: it's the death of many a CEO who worries unduly 128 00:06:28,440 --> 00:06:32,280 Anthony Miller: around persuading people to buy their shares. Rather, I'm very 129 00:06:32,279 --> 00:06:35,480 Anthony Miller: fixated on making the share price. Sure it goes up, 130 00:06:35,520 --> 00:06:38,760 Anthony Miller: and I want that for all my shareholders. But my 131 00:06:38,839 --> 00:06:42,160 Anthony Miller: better time and effort is spend on what's our strategy, 132 00:06:42,800 --> 00:06:45,200 Anthony Miller: How are we executing it? Do people understand what we're 133 00:06:45,240 --> 00:06:47,960 Anthony Miller: about and what we're doing well and what we're not 134 00:06:48,040 --> 00:06:50,800 Anthony Miller: doing well? And do they buy into that? And then 135 00:06:50,839 --> 00:06:51,760 Anthony Miller: that's their choice. 136 00:06:52,440 --> 00:06:54,880 Sean Aylmer: Okay, we'll be back in a moment, Anthony. We'll talk 137 00:06:55,000 --> 00:06:57,279 Sean Aylmer: more about some big picture issues, particularly about how you 138 00:06:57,360 --> 00:07:06,400 Sean Aylmer: run one of the major banks in Australia. I'm talking 139 00:07:06,480 --> 00:07:10,240 Sean Aylmer: to Westpac chief executive Anthony Miller. Before the break we 140 00:07:10,240 --> 00:07:12,720 Sean Aylmer: were talking about you were talking about focusing on strategy. 141 00:07:12,880 --> 00:07:16,080 Sean Aylmer: You've had the job since December last year. I presumably 142 00:07:16,080 --> 00:07:17,840 Sean Aylmer: you've got a phone call or something from the chair 143 00:07:17,880 --> 00:07:19,920 Sean Aylmer: saying would you like the job? You say yes, you 144 00:07:19,960 --> 00:07:22,320 Sean Aylmer: sit down. What do you do like? Do you look 145 00:07:22,360 --> 00:07:24,920 Sean Aylmer: after you know ten direct reports? Do you just worry 146 00:07:24,960 --> 00:07:25,680 Sean Aylmer: about strategy? 147 00:07:25,720 --> 00:07:26,320 Anthony Miller: Do you actually? 148 00:07:26,560 --> 00:07:28,160 Sean Aylmer: I mean, I'm sure you do care about the person 149 00:07:28,200 --> 00:07:29,720 Sean Aylmer: in front of the teller in the bank branch in 150 00:07:29,720 --> 00:07:33,360 Sean Aylmer: Western Australia, But like your day to day job, how 151 00:07:33,360 --> 00:07:34,920 Sean Aylmer: do you do it well. 152 00:07:35,400 --> 00:07:39,559 Anthony Miller: It's busy, and i'd be I've been in the seat 153 00:07:40,200 --> 00:07:42,160 Anthony Miller: today as we sit here talking, I've been in the 154 00:07:42,160 --> 00:07:44,760 Anthony Miller: seat one hundred and forty one days. I've worked every 155 00:07:44,800 --> 00:07:48,600 Anthony Miller: single day other than Good Friday, where I took a 156 00:07:48,640 --> 00:07:50,679 Anthony Miller: little bit easier, but otherwise I've been on the tools 157 00:07:50,720 --> 00:07:54,040 Anthony Miller: since then. I mean, it's a labor of love, okay, 158 00:07:54,160 --> 00:07:57,320 Anthony Miller: Like it's a real privilege, real honor to be the CEO, 159 00:07:57,440 --> 00:08:01,120 Anthony Miller: And so I can't work too hard. I can't do 160 00:08:01,280 --> 00:08:03,720 Anthony Miller: enough in terms of what we need to do and 161 00:08:03,760 --> 00:08:05,240 Anthony Miller: what I think we need to do to take the 162 00:08:05,280 --> 00:08:08,720 Anthony Miller: company forward. But you know, my focus was originally about 163 00:08:09,200 --> 00:08:11,720 Anthony Miller: being very clear about what are our five priorities and 164 00:08:11,760 --> 00:08:15,320 Anthony Miller: making sure everyone in the company understood those five priorities. 165 00:08:15,360 --> 00:08:18,160 Anthony Miller: And I've anchored it around the customer and making sure 166 00:08:18,200 --> 00:08:22,280 Anthony Miller: the company is customer obsessed people. I don't think you 167 00:08:22,320 --> 00:08:24,560 Anthony Miller: can have the best customer proposition unless you've got the 168 00:08:24,560 --> 00:08:26,960 Anthony Miller: best people and the best employee proposition. So I'm really 169 00:08:27,000 --> 00:08:29,760 Anthony Miller: focused on how do I lift that employee proposition. It's 170 00:08:29,760 --> 00:08:31,880 Anthony Miller: not just the way you pay people, but it's the 171 00:08:31,920 --> 00:08:34,120 Anthony Miller: way you lead people. It's the way you invest in people, 172 00:08:34,200 --> 00:08:36,920 Anthony Miller: and how do you inspire them to give you their 173 00:08:37,000 --> 00:08:40,760 Anthony Miller: extra their discretionary effort. And then of course things like risk. 174 00:08:40,800 --> 00:08:43,400 Anthony Miller: We've just got to be better consistently at how we 175 00:08:43,440 --> 00:08:46,440 Anthony Miller: manage risk within the bank. That's our job description. But 176 00:08:46,480 --> 00:08:48,280 Anthony Miller: we don't want to just do it. We want to 177 00:08:48,320 --> 00:08:50,960 Anthony Miller: be differentiated by it. So how do I get everyone 178 00:08:51,040 --> 00:08:53,360 Anthony Miller: lined up around that? And then the other thing that 179 00:08:53,559 --> 00:08:56,440 Anthony Miller: was a priority was around change, the fact that the 180 00:08:56,480 --> 00:08:59,960 Anthony Miller: bank has to continue to change and the Unite project 181 00:09:00,200 --> 00:09:01,760 Anthony Miller: is the corner stone to that over the next three 182 00:09:01,800 --> 00:09:04,560 Anthony Miller: or four years. And so how do I make sure 183 00:09:04,600 --> 00:09:08,520 Anthony Miller: that we don't think of changes this burden. But actually, 184 00:09:09,160 --> 00:09:11,440 Anthony Miller: if change is something that's a constant now you know, 185 00:09:11,520 --> 00:09:14,160 Anthony Miller: the regulator, the government, everyone is always asking us to 186 00:09:14,280 --> 00:09:17,079 Anthony Miller: change the way we do things, the changing asking banks 187 00:09:17,080 --> 00:09:19,320 Anthony Miller: to change the way they operate, then how we do 188 00:09:19,400 --> 00:09:23,400 Anthony Miller: it becomes a way to differentiate yourself by doing it better, faster, 189 00:09:23,520 --> 00:09:26,440 Anthony Miller: more safely than our competitors. And so getting people to 190 00:09:26,440 --> 00:09:29,800 Anthony Miller: buy into that vision. And then finally performance, and you 191 00:09:29,800 --> 00:09:32,200 Anthony Miller: know that comes back to just making sure everyone understands 192 00:09:32,200 --> 00:09:35,960 Anthony Miller: we have got to deliver a sustainable return to the shareholder. 193 00:09:36,320 --> 00:09:39,320 Anthony Miller: And so I put that together and I spent my 194 00:09:39,440 --> 00:09:41,640 Anthony Miller: first you know, one hundred and forty one days. Very 195 00:09:41,720 --> 00:09:45,800 Anthony Miller: much engaging with every employee top to bottom about that, 196 00:09:46,440 --> 00:09:48,839 Anthony Miller: and what I've been most delighted with is just how 197 00:09:48,960 --> 00:09:52,360 Anthony Miller: people people are on board for that. You know, people 198 00:09:52,400 --> 00:09:54,600 Anthony Miller: really want to go through it. And there's a real 199 00:09:54,640 --> 00:09:58,319 Anthony Miller: affection within the Westpac group. I mean the employees, see, 200 00:09:58,360 --> 00:10:00,520 Anthony Miller: they love the company. It's a real priv to work 201 00:10:00,559 --> 00:10:03,559 Anthony Miller: with them, and they're so affectionate for the company, and 202 00:10:03,600 --> 00:10:06,319 Anthony Miller: they have so much of an aspiration for where Westpac 203 00:10:07,000 --> 00:10:09,920 Anthony Miller: should be. You know, Australia's oldest company. You know, we're 204 00:10:09,920 --> 00:10:13,040 Anthony Miller: the most significant contributor bar none in terms of the 205 00:10:13,080 --> 00:10:15,880 Anthony Miller: economic development of this country over two hundred years, and 206 00:10:15,920 --> 00:10:19,040 Anthony Miller: so everyone wants to see us you aspiring to be 207 00:10:19,160 --> 00:10:23,280 Anthony Miller: that bank that leads and is, if you will, number one, 208 00:10:23,760 --> 00:10:26,479 Anthony Miller: and so everyone's got behind that. So I'm pretty invigorated 209 00:10:26,480 --> 00:10:29,320 Anthony Miller: by that. But then, of course, you know, the hard 210 00:10:29,320 --> 00:10:31,400 Anthony Miller: work starts. So it's all easy to put the five 211 00:10:31,400 --> 00:10:33,360 Anthony Miller: priorities up there, sure, but it's all about what you 212 00:10:33,440 --> 00:10:34,160 Anthony Miller: do afterwards. 213 00:10:34,320 --> 00:10:37,560 Sean Aylmer: Okay, a few external issues at Donald Trump World. What's 214 00:10:37,600 --> 00:10:40,360 Sean Aylmer: that mean for Australia And I'm talking about the economy, 215 00:10:40,440 --> 00:10:43,079 Sean Aylmer: not Westpact per se. What's that mean for Australia and 216 00:10:43,360 --> 00:10:45,040 Sean Aylmer: the Donald Trump tariff issue. 217 00:10:45,320 --> 00:10:51,720 Anthony Miller: Yeah, so, certainly the uncertainty and the inconsistency that we're 218 00:10:51,760 --> 00:10:54,600 Anthony Miller: seeing out of the US a result of Donald Trump 219 00:10:54,679 --> 00:10:58,520 Anthony Miller: is quite unusual. It's unprecedented, and it is putting at 220 00:10:58,600 --> 00:11:02,760 Anthony Miller: risk global trade and global norms that we as a 221 00:11:02,800 --> 00:11:05,880 Anthony Miller: country have come to rely upon. You know, we are 222 00:11:06,240 --> 00:11:11,560 Anthony Miller: a nation that enjoys the benefits of free trade, free access, 223 00:11:12,080 --> 00:11:15,360 Anthony Miller: uninhabit access to various markets, and so that's a risk 224 00:11:15,440 --> 00:11:17,560 Anthony Miller: for us. Having said that, the one thing we've got 225 00:11:17,600 --> 00:11:19,719 Anthony Miller: to do with, you know, what's going on in the 226 00:11:19,800 --> 00:11:22,560 Anthony Miller: United States is not to react to the headlines, not 227 00:11:22,600 --> 00:11:25,600 Anthony Miller: to react to the announcements, because too often we've seen 228 00:11:25,640 --> 00:11:29,840 Anthony Miller: the announcement and then within the month, certainly within a 229 00:11:29,840 --> 00:11:33,640 Anthony Miller: couple of months, things start to be adjusted reversed. And 230 00:11:33,679 --> 00:11:36,360 Anthony Miller: so the headline and the drama at the start is 231 00:11:36,440 --> 00:11:38,680 Anthony Miller: not what we need to react to. And so, while 232 00:11:39,080 --> 00:11:42,199 Anthony Miller: it does sound dramatic at the moment around the tariffs 233 00:11:42,240 --> 00:11:45,960 Anthony Miller: and what's being imposed and the reciprocal tariff war that 234 00:11:46,000 --> 00:11:48,720 Anthony Miller: seems to be emerging. At the same time, you've seen 235 00:11:48,760 --> 00:11:50,880 Anthony Miller: lots of people highlight they want to do a deal 236 00:11:51,040 --> 00:11:54,080 Anthony Miller: they want to actually agree something alternative, and so I 237 00:11:54,200 --> 00:11:57,640 Anthony Miller: think an element of rationality will take over and so 238 00:11:57,720 --> 00:12:00,960 Anthony Miller: therefore its impact won't be as dramatic. But for Australia, 239 00:12:01,160 --> 00:12:03,280 Anthony Miller: what we've got to do is we've really got to 240 00:12:03,280 --> 00:12:06,160 Anthony Miller: ask ourselves, well, okay, if things are going to change, 241 00:12:06,640 --> 00:12:10,880 Anthony Miller: and in fact, irrespective of Trump, we should be asking ourselves, 242 00:12:11,080 --> 00:12:13,319 Anthony Miller: what more can we do? How else can we better 243 00:12:13,360 --> 00:12:16,000 Anthony Miller: set up Australia. And I think that means starting to 244 00:12:16,040 --> 00:12:19,719 Anthony Miller: think about doing things differently, growing in areas that classically 245 00:12:19,760 --> 00:12:23,000 Anthony Miller: we haven't grown in before, trying not to be entirely 246 00:12:23,040 --> 00:12:26,200 Anthony Miller: reliant upon selling commodities to one or two markets in 247 00:12:26,240 --> 00:12:30,120 Anthony Miller: the world. And so maybe there's a positive lining to 248 00:12:30,320 --> 00:12:32,760 Anthony Miller: the Trump phenomena, which is it asks us to think 249 00:12:32,800 --> 00:12:35,160 Anthony Miller: about things and start to do things differently. And I 250 00:12:35,200 --> 00:12:37,760 Anthony Miller: think the re election of the Labor government on the 251 00:12:37,760 --> 00:12:41,960 Anthony Miller: weekend is first step in affirming that. Actually, as a 252 00:12:41,960 --> 00:12:44,400 Anthony Miller: moment now for Australia really set ourselves apart and start 253 00:12:44,400 --> 00:12:45,000 Anthony Miller: to get going. 254 00:12:45,280 --> 00:12:46,840 Sean Aylmer: So we are running out of time, but I'm just 255 00:12:46,880 --> 00:12:49,920 Sean Aylmer: interested in that we now have a dominant center left 256 00:12:50,320 --> 00:12:53,600 Sean Aylmer: government likely to be in power for six years. If 257 00:12:53,600 --> 00:12:55,640 Sean Aylmer: you're a betting person, you'd say at least six years. 258 00:12:56,160 --> 00:12:58,120 Sean Aylmer: Is that a good or a bad thing for business? 259 00:12:58,440 --> 00:13:02,760 Anthony Miller: So I certainly think the realction of that government and 260 00:13:02,920 --> 00:13:06,040 Anthony Miller: congratulations to the Prime Minister and his team, is a 261 00:13:06,040 --> 00:13:10,960 Anthony Miller: positive for Australia. You know, we are a beacon of certainty, 262 00:13:11,240 --> 00:13:14,920 Anthony Miller: consistency and continuity in a world that is very uncertain 263 00:13:15,520 --> 00:13:19,520 Anthony Miller: and very inconsistent, and that is a real positive. That 264 00:13:19,720 --> 00:13:21,960 Anthony Miller: is a comparative vantage for this country that you know 265 00:13:22,679 --> 00:13:24,720 Anthony Miller: where we've come from and where we're going and so 266 00:13:25,280 --> 00:13:28,120 Anthony Miller: that is something that we must not fail to capture, 267 00:13:28,160 --> 00:13:32,319 Anthony Miller: which is that consistency and continuity. And I would say 268 00:13:32,400 --> 00:13:35,120 Anthony Miller: that you know the fact that even before the election 269 00:13:35,960 --> 00:13:39,000 Anthony Miller: last week the Treasurer was talking about let's start thinking 270 00:13:39,040 --> 00:13:43,600 Anthony Miller: about and driving productivity improvements in Australia highlights that there's 271 00:13:43,600 --> 00:13:48,120 Anthony Miller: a real consistency and certainty that is really important for Australia. 272 00:13:48,160 --> 00:13:50,719 Anthony Miller: And if you think about Australia's success Sean, it's been 273 00:13:50,800 --> 00:13:55,280 Anthony Miller: built on we are classically an importer of capital and talent, 274 00:13:56,320 --> 00:13:59,680 Anthony Miller: and now how do we compete for capital and talent 275 00:14:00,080 --> 00:14:04,079 Anthony Miller: fac that we've got a consistent, certain regime, certain set 276 00:14:04,120 --> 00:14:06,160 Anthony Miller: of policies and we know where they stand. It doesn't 277 00:14:06,160 --> 00:14:08,480 Anthony Miller: mean you agree with everything they do or don't do, 278 00:14:08,600 --> 00:14:11,880 Anthony Miller: but you've got consistency. That's what tracks capital and talent, 279 00:14:11,920 --> 00:14:14,200 Anthony Miller: and I think therefore it sets us up for the 280 00:14:14,240 --> 00:14:16,920 Anthony Miller: next three to four years and I think I'm looking 281 00:14:16,920 --> 00:14:19,160 Anthony Miller: forward to seeing what the new government will do in 282 00:14:19,240 --> 00:14:23,000 Anthony Miller: terms of driving productivity and potentially exploring some other reforms 283 00:14:23,280 --> 00:14:25,760 Anthony Miller: over the course the next term of government. 284 00:14:26,080 --> 00:14:28,320 Sean Aylmer: I can't have a bank CEO without one last question, 285 00:14:28,520 --> 00:14:31,400 Sean Aylmer: interest rates are going to get a cut on May twenty? 286 00:14:31,480 --> 00:14:32,160 Sean Aylmer: Anthony Miller. 287 00:14:32,600 --> 00:14:35,200 Anthony Miller: Well, I've got a lot of faith in my chief economist. 288 00:14:35,200 --> 00:14:37,960 Anthony Miller: I think she's the best chief economist in Australia well 289 00:14:38,080 --> 00:14:41,960 Anthony Miller: credential and she's exceptionally well credentialed. She's also probably one 290 00:14:41,960 --> 00:14:44,800 Anthony Miller: of the most intelligent people I've ever met, persons I've 291 00:14:44,840 --> 00:14:48,120 Anthony Miller: ever met, and so she's forecasting a rate cut in May. 292 00:14:48,200 --> 00:14:51,200 Anthony Miller: So I feel like that's likely. But you know what, 293 00:14:51,800 --> 00:14:54,040 Anthony Miller: it's an uncertain world, and you know who would have 294 00:14:54,040 --> 00:14:56,480 Anthony Miller: thought before the election started six weeks ago that you'd 295 00:14:56,520 --> 00:14:58,640 Anthony Miller: have the result we have. So I think anyone who 296 00:14:58,680 --> 00:15:02,520 Anthony Miller: talks in absolutes and with absolute view on things is 297 00:15:03,080 --> 00:15:06,720 Anthony Miller: treading into dangerous territory. But having said that it does 298 00:15:06,840 --> 00:15:10,280 Anthony Miller: look like the Reserve Bank will world cut rates in May, 299 00:15:10,320 --> 00:15:12,400 Anthony Miller: and certainly that's our forecast as we sit here today. 300 00:15:12,760 --> 00:15:14,520 Sean Aylmer: Anthony, thank you for talking to Fear and Greed. 301 00:15:14,840 --> 00:15:16,760 Anthony Miller: Thanks very much, Sean, real pleasure to be here. 302 00:15:16,840 --> 00:15:19,480 Sean Aylmer: That was Anthony Miller, CEO of Westpac. This is the 303 00:15:19,520 --> 00:15:21,880 Sean Aylmer: Fear and Greed Business Interview. Join us every morning for 304 00:15:21,920 --> 00:15:24,760 Sean Aylmer: the full episode of Fear and Greed. Daily business news 305 00:15:24,760 --> 00:15:27,240 Sean Aylmer: but people who make their own decisions. I'm Johan Elm. 306 00:15:27,480 --> 00:15:33,480 Sean Aylmer: I'm enjoying your day.