SMEs bracing for cost crunch; a2 Milk detects toxins; GameStop bids for eBay

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FEAR & GREED | Business News 16 min 2 speakers 8 chapters transcribed 4 months ago
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Transcript generated automatically by AI and may contain errors.

What is the main topic discussed in this episode?

Juliette Sali 0:06
Welcome to Fear and Greed, business news you can use.

How are rising fuel prices affecting SMEs in Australia?

Juliette Sali 0:09
Today, National Australia Bank warns that rising fuel prices are set to put the squeeze on small and medium-sized businesses. More than $200 billion in value has been wiped off the local share market so far this year, with the healthcare sector most to blame.

What impact has the economic crisis had on the Australian share market?

Juliette Sali 0:24
And ASIC launches an investigation into insider trading at Accent Group.

What insider trading investigation is ASIC conducting?

Juliette Sali 0:29
Plus, A2 Milk recalls a batch of product after detecting a toxin that causes vomiting and diarrhea.

What toxin was detected in A2 Milk products and what are the implications?

Juliette Sali 0:36
And bricks-and-mortar retailer GameStop wants to buy eBay for about US$56 billion.

Why is GameStop interested in acquiring eBay?

Juliette Sali 0:43
It's Tuesday, the 5th of May, 2026. I'm Juliette Sali from Ausbiz, and good morning, Sean Alma.
Sean Alma 0:50
Good morning. Are you enjoying Fear and Greed, Juliette?
Juliette Sali 0:53
It is a lot of fun. I was just telling you off air as well that I've had some nice messages.

What insights did the NAB CEO provide about the current economy?

Juliette Sali 0:58
So it's obviously a very, very popular podcast, which we already knew. So well done to you and Michael.
Sean Alma 1:03
Thank you very much.
Juliette Sali 1:04
Well, the main story this morning, National Australia Bank has warned that rising fuel prices are putting the squeeze on small and medium-sized businesses, even though the sector has held up well so far. Lending to SMEs by the country's largest business lender jumped nearly 5% over the last half year. Now, CEO Andrew Irvine said the current economic crisis and stresses aren't showing up in the numbers yet, but when he talks to customers, you do hear concern and falling levels of confidence. Australia's third largest bank yesterday reported a $3.59 billion profit, excluding a one-off accounting adjustment, which was a touch below expectations.

How is the Australian housing market performing amid economic changes?

Juliette Sali 1:42
And that, along with Irvine's less than optimistic view on lending, set the bank's share price down more than 1% during Monday's trade.
Sean Alma 1:51
Plenty in the result, as always, with the big banks. It included a $300 million extra provision for poorer credit quality. NAB had announced that last week, though thus far, bad debts haven't actually increased. The bottom line was hit with a $949 million charge for a change in accounting policy relating to software. That in part reflected the declining value of that type of asset as AI takes over their functions. Highlights including higher net interest margins, Particularly in home lending, where National Australian Bank is using fewer brokers, Irvine said the bank was being cautious in some sectors. The bank itself talked about agribusiness, commercial real estate, construction, manufacturing and transport.
Sean Alma 2:33
After a pretty extraordinary run from the middle of 2023 to February this year, when NAB's share price nearly doubled, it has come off about 20% since then, including yesterday's drop.
Juliette Sali 2:44
And of course, Sean, it is a very big day for most Australians with the Reserve Bank board set to lift interest rates at 2.30pm Sydney time today. So you spoke to the NAB boss. What did he say about the economy more generally? Does he think rates will go up?
Sean Alma 2:57
He sure does, Juliet. He thinks there'll be one more interest rate increase from the Reserve Bank. He also thinks economic growth will slow down pretty sharply this year to about a 1.5% pace. That means for National Australia Bank, a slowdown in housing, personal and business lending. The NAB economics team is forecasting a rise in unemployment and underlying inflation. None of that sounds like good news to me. However, always a silver lining. NAB reckons there'll be a couple of rate cuts next year. The idea is that the Reserve Bank will lift interest rates today, the brakes will come on, and all of a sudden they'll have to decrease interest rates to kickstart things again just once we get past this spike.
Sean Alma 3:38
Are you looking forward to the press conference this harvest?
Juliette Sali 3:41
Yes, I am. I think it's going to be a really, really interesting meeting. I mean, most people, as you say, are expecting that we will see a hike, but it's going to be really that commentary as well about the concern. Is this going to push Australia into recession? Will they have to pivot, as you mentioned, that Andrew Irvine said that they may have to do towards the latter part of the year?

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