00:00:00
Speaker 1: And they could never tear us apart.
00:00:04
Speaker 2: David Kosh on 5AA Breakfast. Nine minutes to eight. David Kosh, Port Adelaide Football Club chairman. We've had the market economic director appealing on 5AA Breakfast the other day. He's about to steal Luke Paddler away from the Adelaide Football Club. But we won't let that get in the way of a friendly otherwise conversation. One of my favourites, Peds. Koshi, you guys better take good care of him. Good morning.
00:00:26
Speaker 1: There you go. Well, it's nice he wants to come to us and we'll leave it up to the list managers to see if they can get it done the afternoon. But yeah, he fits our profile and our needs. And if it all comes off really, welcome him to the club.
00:00:45
Speaker 2: I don't even want to talk about that because it makes me too angry. Trade work, stupid thing. Hey, there's a couple of, I think some really interesting stories knocking around that, Maybe they do or maybe they don't say something more broadly about Australia. We haven't spoken much on the program about the Firmus IPO, Koshi, because it's largely a financial pages kind of story. But for people that don't know, it's this company that builds data centers, wanted to float on the share market, and they came up with a valuation that, as it turns out, people thought was crazy, and they pulled it. So it didn't happen. That's the broad strokes of it. But it started this meta conversation in Australia, Koshi, about well, A, was this just two blokes who were kidding themselves with what they valued their company, or do we more broadly have a problem in Australia with supporting entrepreneurialism and startups and having these sorts of ideas transition in a way where in the US, maybe they're happy to be a bit more speculative, or maybe both those things are true. What do you think?
00:01:45
Speaker 1: Look, I think we are entrepreneurial. We're prepared to back companies and entrepreneurs. Remember, we've For massive companies, we only have a limited amount of financial power just because of the sheer size of the financial market. Look at Canberra, for example, a great Aussie homegrown company, which is worth billions now, but to fund their growth, they had to go off to offshore markets, international markets, quite rightly. But the firm is a good company, good sound financiers. But they just overvalued it on the float. And I talked to my fund manager mates who were part of the roadshow and received the presentation on Firmus saying that it just lacked a lot of detail. And remember, a lot of these big investors are looking after your money and my money because it's our superannuation or our managed fund. So they have to run a lens over where does the valuation stack up? Because ultimately, they've got to deliver in the future on those forecasts they're making. And the consensus was there was too little detail that if they'd come up with better detail and to justify the valuation, everyone would have been happy. But that was lacking. And you know, those investors, fund managers have a responsibility to their clients as well to make sure they're making the right decision.
00:03:21
Speaker 2: I do have some sympathy for them, Akashi, in the sense that it does feel like it as a sort of from the untrained eye that anyone mentions AI or data centers and ask for money at the moment, it doesn't seem to matter what your profit is, you tend to get it.
00:03:32
Speaker 1: I know, it's a hot term. And you look at presentations of mining companies now and they throw in AI. AI is going to reduce our costs. AI is going to do that. And you're going, yeah, well, I suppose so. But it is the hot word to try and capture the imagination of the market. So you've just got to keep it all in perspective.
00:03:58
Speaker 3: Yeah. Koshi, the RBA minutes have come out from the last board meeting where they raised interest rates and they had some interesting comments about fuel and maybe we've been overestimating the way fuel prices have been, pardon the pun.
00:04:15
Speaker 1: Fueling the economy, inflation? Exactly. I think the minutes were interesting because it reflected the discussion behind why they put up interest rates. And yes, fuel is the most obvious because, I don't know about you, but I'm paranoid on the way to work and checking prices on The petrol structure, it's almost become a national pastime. If you can save five cents a litre in a different suburb, you make the detour and go buy it. But yeah, I think they're saying there's a lot more behind the inflation figure and the rise in inflation than just petrol prices at the moment, even though it does have a major ripple effect. And Michelle Bullock in her press conference after the last rate rise was pretty clear on that. It was domestic demand as well as fuel as well. So, yeah, I think the tone of the statement is that we need to be prepared for another rise in the future.
00:05:25
Speaker 2: Hey, Kashi, what's the track record of the IMF been in terms of forecasting conditions in Australia? Because the report they put out this week about unemployment was... rising was somewhat concerning.
00:05:36
Speaker 1: It was concerning. IMF's track record is a little iffy at times, to use a technical term. But remember, the Reserve Bank is also predicting higher unemployment. And you get the economists saying, oh, unemployment needs to get to 5% if we if we need to break the inflation cycle, that's all very good for an economist sitting in an ivory tower. But if you're one of those people that lose their job because unemployment's going to 5% and the devastation, emotional, the stress on your family, you don't wish it on anyone. And if you can get that balance of bringing inflation down while keeping people in a job, That is the magic antidote that we should be aiming for. And that means, as we've said before, all consumers, governments, businesses all pulling together to fight inflation. And it's got to be a concerted effort.
00:06:45
Speaker 2: Yeah.
00:06:45
Speaker 3: All right. It feels like we're doing our part.
00:06:48
Speaker 1: Yep, exactly right. Households.
00:06:49
Speaker 3: Feels like households.
00:06:50
Speaker 2: Mortgage holders. Consumers, particularly mortgage holders.
00:06:53
Speaker 1: Yep, more than enough. And before we go, can I just wish all the chefs and restaurant owners who have been invited to the Michelin launch tonight all the very best and hope you get recognised. It's going to be a big night for South Australia.
00:07:11
Speaker 2: The people don't rate, do they, Koshy? From your perspective as the tourism boss, you'll understand this and articulate better than I will, but The degree to which the Michelin standard is recognised around the world. People travel to go to Michelin-starred restaurants.
00:07:25
Speaker 1: Unbelievable. We're a leader in food and wine in this nation. Michelin makes us a leader in food and wine globally. I have a daughter in London, just an average mum and works in the media over there. She will travel, build holidays... around Michelin restaurants.
00:07:49
Speaker 3: Yeah, I do too.
00:07:50
Speaker 1: And they don't need to be stars. You know, she loves the little ones, sort of the little street stalls in Singapore that get recognised by Michelin that only has a mum and dad there cooking and only one dish. You know, that's what it will do not only for the big end, the big restaurants in Adelaide, but also the suburban ones, the little gems that Michelin will uncover. Yeah.
00:08:15
Speaker 2: Yeah, it's going to be massive. We're going to be speaking with one of the judges that's been in town tomorrow morning on the program as well. Looking forward to doing that. Koshy, great to chat with you, mate. Take care of Luke Padlet.
00:08:25
Speaker 1: Thanks, guys. Thank you. We will.
00:08:27
Speaker 2: That's what I'm afraid of.
Speaker 1: And they could never tear us apart.
00:00:04
Speaker 2: David Kosh on 5AA Breakfast. Nine minutes to eight. David Kosh, Port Adelaide Football Club chairman. We've had the market economic director appealing on 5AA Breakfast the other day. He's about to steal Luke Paddler away from the Adelaide Football Club. But we won't let that get in the way of a friendly otherwise conversation. One of my favourites, Peds. Koshi, you guys better take good care of him. Good morning.
00:00:26
Speaker 1: There you go. Well, it's nice he wants to come to us and we'll leave it up to the list managers to see if they can get it done the afternoon. But yeah, he fits our profile and our needs. And if it all comes off really, welcome him to the club.
00:00:45
Speaker 2: I don't even want to talk about that because it makes me too angry. Trade work, stupid thing. Hey, there's a couple of, I think some really interesting stories knocking around that, Maybe they do or maybe they don't say something more broadly about Australia. We haven't spoken much on the program about the Firmus IPO, Koshi, because it's largely a financial pages kind of story. But for people that don't know, it's this company that builds data centers, wanted to float on the share market, and they came up with a valuation that, as it turns out, people thought was crazy, and they pulled it. So it didn't happen. That's the broad strokes of it. But it started this meta conversation in Australia, Koshi, about well, A, was this just two blokes who were kidding themselves with what they valued their company, or do we more broadly have a problem in Australia with supporting entrepreneurialism and startups and having these sorts of ideas transition in a way where in the US, maybe they're happy to be a bit more speculative, or maybe both those things are true. What do you think?
00:01:45
Speaker 1: Look, I think we are entrepreneurial. We're prepared to back companies and entrepreneurs. Remember, we've For massive companies, we only have a limited amount of financial power just because of the sheer size of the financial market. Look at Canberra, for example, a great Aussie homegrown company, which is worth billions now, but to fund their growth, they had to go off to offshore markets, international markets, quite rightly. But the firm is a good company, good sound financiers. But they just overvalued it on the float. And I talked to my fund manager mates who were part of the roadshow and received the presentation on Firmus saying that it just lacked a lot of detail. And remember, a lot of these big investors are looking after your money and my money because it's our superannuation or our managed fund. So they have to run a lens over where does the valuation stack up? Because ultimately, they've got to deliver in the future on those forecasts they're making. And the consensus was there was too little detail that if they'd come up with better detail and to justify the valuation, everyone would have been happy. But that was lacking. And you know, those investors, fund managers have a responsibility to their clients as well to make sure they're making the right decision.
00:03:21
Speaker 2: I do have some sympathy for them, Akashi, in the sense that it does feel like it as a sort of from the untrained eye that anyone mentions AI or data centers and ask for money at the moment, it doesn't seem to matter what your profit is, you tend to get it.
00:03:32
Speaker 1: I know, it's a hot term. And you look at presentations of mining companies now and they throw in AI. AI is going to reduce our costs. AI is going to do that. And you're going, yeah, well, I suppose so. But it is the hot word to try and capture the imagination of the market. So you've just got to keep it all in perspective.
00:03:58
Speaker 3: Yeah. Koshi, the RBA minutes have come out from the last board meeting where they raised interest rates and they had some interesting comments about fuel and maybe we've been overestimating the way fuel prices have been, pardon the pun.
00:04:15
Speaker 1: Fueling the economy, inflation? Exactly. I think the minutes were interesting because it reflected the discussion behind why they put up interest rates. And yes, fuel is the most obvious because, I don't know about you, but I'm paranoid on the way to work and checking prices on The petrol structure, it's almost become a national pastime. If you can save five cents a litre in a different suburb, you make the detour and go buy it. But yeah, I think they're saying there's a lot more behind the inflation figure and the rise in inflation than just petrol prices at the moment, even though it does have a major ripple effect. And Michelle Bullock in her press conference after the last rate rise was pretty clear on that. It was domestic demand as well as fuel as well. So, yeah, I think the tone of the statement is that we need to be prepared for another rise in the future.
00:05:25
Speaker 2: Hey, Kashi, what's the track record of the IMF been in terms of forecasting conditions in Australia? Because the report they put out this week about unemployment was... rising was somewhat concerning.
00:05:36
Speaker 1: It was concerning. IMF's track record is a little iffy at times, to use a technical term. But remember, the Reserve Bank is also predicting higher unemployment. And you get the economists saying, oh, unemployment needs to get to 5% if we if we need to break the inflation cycle, that's all very good for an economist sitting in an ivory tower. But if you're one of those people that lose their job because unemployment's going to 5% and the devastation, emotional, the stress on your family, you don't wish it on anyone. And if you can get that balance of bringing inflation down while keeping people in a job, That is the magic antidote that we should be aiming for. And that means, as we've said before, all consumers, governments, businesses all pulling together to fight inflation. And it's got to be a concerted effort.
00:06:45
Speaker 2: Yeah.
00:06:45
Speaker 3: All right. It feels like we're doing our part.
00:06:48
Speaker 1: Yep, exactly right. Households.
00:06:49
Speaker 3: Feels like households.
00:06:50
Speaker 2: Mortgage holders. Consumers, particularly mortgage holders.
00:06:53
Speaker 1: Yep, more than enough. And before we go, can I just wish all the chefs and restaurant owners who have been invited to the Michelin launch tonight all the very best and hope you get recognised. It's going to be a big night for South Australia.
00:07:11
Speaker 2: The people don't rate, do they, Koshy? From your perspective as the tourism boss, you'll understand this and articulate better than I will, but The degree to which the Michelin standard is recognised around the world. People travel to go to Michelin-starred restaurants.
00:07:25
Speaker 1: Unbelievable. We're a leader in food and wine in this nation. Michelin makes us a leader in food and wine globally. I have a daughter in London, just an average mum and works in the media over there. She will travel, build holidays... around Michelin restaurants.
00:07:49
Speaker 3: Yeah, I do too.
00:07:50
Speaker 1: And they don't need to be stars. You know, she loves the little ones, sort of the little street stalls in Singapore that get recognised by Michelin that only has a mum and dad there cooking and only one dish. You know, that's what it will do not only for the big end, the big restaurants in Adelaide, but also the suburban ones, the little gems that Michelin will uncover. Yeah.
00:08:15
Speaker 2: Yeah, it's going to be massive. We're going to be speaking with one of the judges that's been in town tomorrow morning on the program as well. Looking forward to doing that. Koshy, great to chat with you, mate. Take care of Luke Padlet.
00:08:25
Speaker 1: Thanks, guys. Thank you. We will.
00:08:27
Speaker 2: That's what I'm afraid of.
