Inflation up, growth down; mega data centre deal; Tinder’s push for women

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FEAR & GREED | Business News 17 min 2 speakers 8 chapters transcribed 4 months ago
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What is the main topic discussed in this episode?

Michael Thompson 0:06
Welcome to Fear and Greed, business news you can use today.

What warning did Treasurer Jim Chalmers give about Australia's economy?

Michael Thompson 0:09
Treasurer Jim Chalmers warns Australia could be heading for lower growth and higher inflation. NextDC, Australia's largest data centre company, does a mega deal to build for one tech company as much as it has developed in the last 15 years. And dating app Tinder sets out to be more attractive to women. Plus, National Australia Bank warns on bad debts due to high energy prices and electric vehicle company BYD booms. It is Tuesday, the 21st of April, 2026. I'm Michael Thompson and good morning, Sean Aylmer. Good morning, Michael. this morning, Federal Treasurer Jim Chalmers has warned that the Middle East conflict is already having some serious consequences for the Australian economy and that they are serious now and they could become severe.
Michael Thompson 0:56
He has warned of higher inflation, slower economic growth and the potential for rising unemployment.
Sean Aylmer 1:03
Not a trifecta you want to win, Michael. And that's the environment the federal budget is being set in. Now, it's due out on May 12.

What is the significance of NextDC's mega deal in the data center industry?

Sean Aylmer 1:12
Chalmers said it would include tax productivity and savings goals, though it is somewhat hostage to the global economic turmoil. Having spent late last week in Washington for a G20 summit, the Treasurer said the budget will be about supply chain vulnerabilities... and supply-side reforms. If you read between the lines, supply chain vulnerabilities, all about the energy sector, that'll get a boost. And the supply-side reforms, well, one of the big pain points there is housing. So you can expect changes to housing. Chalmers was at pains yesterday to push back on commentary that the budget bottom line would benefit from a jump in commodity prices. He said that's not necessarily the case.
Michael Thompson 1:52
What he did say, though, Sean, was that consultation has begun on a new policy to allow every taxpayer to deduct $1,000 for their tax return without actually providing receipts. I like that.

How is Tinder trying to attract more women to its platform?

Michael Thompson 2:04
I like this. That's because you just hate keeping receipts in general. So this is music to your ears, right?

How is National Australia Bank responding to rising energy prices?

I do.
Sean Aylmer 2:10
Yes, yes, yes, very true. The Albanese government took the policy to last year's election. It's likely to be introduced for the next financial years, depending on what you earn. You could save up to $470, average saving apparently of just over $200.
Michael Thompson 2:26
Tell I might have stumbled upon a bit of a sore spot for you. Yeah, I don't think you really like that too much. Look, back to the economy though. Sean, Jim Chalmers, he's not painting a pretty picture with this, is he?

What challenges are Australian businesses facing due to high energy prices?

Michael Thompson 2:38
He said there was a sense of economies lurching from one global shock to another and being held hostage to decisions from Washington, Tehran and Tel Aviv.

What factors are contributing to the boom of electric vehicle company BYD?

Michael Thompson 2:48
Chalmers said the budget would present a downside scenario, which would show lower growth and employment and higher price rises.
Sean Aylmer 2:56
And Treasury is in discussions now about how that might look, and it wouldn't look very good. Last week, the IMF warned that the global economy could tip into its third recession this century if the war in the Middle East continues to disrupt the Strait of Hormuz and oil prices. Now, locally, market economists are talking about the chance of inflation heading to 5%, possibly 6%. that would almost certainly mean higher interest rates. And I'm not just talking about one hike, two or three. HSBC chief economist Paul Bloxham, who previously worked at the Reserve Bank, said he now expects to see mild stagflation in the economy. That's growth going backwards and inflation spiking. That is exactly what we do not want.
Sean Aylmer 3:40
Other senior economists, including the former head of Treasury, Martin Parkinson, has said that where it's close to stagflation, if we're not there already, certainly it's a real possibility. Now, stagflation is, since the 1970s, it has been the dirty word in economics. Much worse than inflation, much worse than low economic growth, because it puts the two of them together.
Michael Thompson 4:00
This feels like things have gotten a lot worse very quickly though, right?
Sean Aylmer 4:05
Yeah, I totally agree on that because the government hasn't been seemingly worried about it until, I mean, I'm sure they've been worried about it, but they haven't been talking the economy down until Chalmers went to Washington late last week.

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