The Saturday Edition | 5 Sep 2026

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FEAR & GREED | Business News 32 min 3 speakers 4 chapters transcribed 17 days ago
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What is the format of the Saturday Edition competition and who are the judges?

Michael Thompson 0:06
This is the Saturday edition of Fear and Greed. Business News You Can News. I'm Michael Thompson and good morning, Natalie MacDonald.
Natalie MacDonald 0:12
Good morning, Michael.
Michael Thompson 0:14
Now, Natalie, the Saturday edition is of course a competition. It is a battle between us to decide uh the biggest and best stories from the last seven days. As always, our judges, Adam Lang. Adam, good morning. Good morning, Michael, and good morning, Natalie.
Natalie MacDonald 0:28
Hi, Adam.
Michael Thompson 0:29
Now, Adam, last week you made uh a judgment overall against me. I have held on to that. What are you looking for in this week's competition? Any changes to your normal criteria? Are you adding in a a mystery element? Well, on the podium
Adam Lang 0:46
at the very top. Is economic impact. Just like when Natalie finished that marathon last weekend. Straight to the podium.
Natalie MacDonald 0:55
I appreciate that reference. Thank you.
Adam Lang 0:58
Amazing achievement. And economic impact supported by topicality and timeliness. I like a little bit of storytelling and a mention or two of some reform ideas would be great.
Michael Thompson 1:09
Oh boy, you are going to love this week. That's a
Adam Lang 1:15
bonanza.
Michael Thompson 1:16
Oh my god, we have got you covered. All right, we will jump straight into the first category, which is our biggest story of the week. I was going to give it a uh an exotic title. That'll do. And I couldn't think of one. I ended up going with bigger story. Why change something if it's not broken? Natalie, would you like to give us your bigger story?
Natalie MacDonald 1:42
Sure. Alrighty. So for my biggest story, I am taking the economy. Because apparently in twenty twenty six the economy doing better than expected is Bad news. Excellent. Love that for us. So GDP grew 0.4% in the June quarter and 2.1% over the year, helped along by household spending. Sounds great. Except a stronger economy is also exactly the kind of thing that could convince the RBA that we can handle another interest rate rise. I don't think we can. And markets are increasingly convinced that that is where we're heading. They're now pricing around a 70% chance of a hike this month, with another move fully priced in by November. Meanwhile, the bond market, yes, hello, you old friend, has decided that mortgages apparently weren't stressful enough.
Natalie MacDonald 2:40
Australian 10-year bond deals have pushed above 5% for the first time in around 15 years. Years pushing up borrowing costs across the economy. So the economy is stronger, rates could be going higher, borrowing costs are already surging. Good news is bad news. Bad news is bad news. Tell me that's not the biggest story once once you've worked out if it's good, bad or somewhere in between.
Michael Thompson 3:05
Yeah, it it may not be the biggest story, but it is certainly the most confusing story, especially the way that you managed to uh mix us all up there at the end. Look, I'm not going to talk down your story. Last week I took uh the strategy of attacking your entry in each category and I I've turned over a new leaf. I'm much more positive, I'm much more happy, I'm much friendlier, but I actually have a bad news story to begin with.
Natalie MacDonald 3:34
Why do I trust this even less than your than your usual operating mode?
Michael Thompson 3:38
No, because I thought I'd just try something new and you know that I I'm I don't like new things and I'll probably just go back to the way that I I was before.
Natalie MacDonald 3:45
All right. Have a fit.
Michael Thompson 3:47
This week, the property downturn, unfortunately, stopped looking like a predominantly Sydney Melbourne problem and started looking a whole lot broader. 93% of capital city suburbs went backwards over winter. This is, according to totality figures, national values are down now 3.6% from their peak. In Sydney's case, which is is leading the way here. It's already down 7.1% and it's falling faster than it did in the last correction. So this is this is actually happening very, very quickly. The big change as well this week is that the forecasts now are getting uglier. They are getting worse. Commonwealth Bank thinks national prices could fall 9%, including 13% in Sydney, 12% in Melbourne. HSBC is going even further.
Michael Thompson 4:39
13% national fall peak to trough. Largely Naturally, because it now expects more interest rate hikes. HSBC is actually tipping two more rate hikes, uh further to your story, which means I get points for your story if you win.

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