MEDIA KIT 2018 MIKE CANNON BROOKES & SCOTT FARQUAR - FOUNDERS OF ATLASSIAN - ADCENTRE
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MIKE CANNON BROOKES
& SCOTT FARQUAR -
Media Kit 2018
FOUNDERS OF ATLASSIAN
PHOTO: NICK WALKER
AFR Weekend – Overview
AFRWEEKEND 37
Food trends The dark side of your smashed avo p40 Insider Albert Namatjira’s first exhibition p42
WeekendFin
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www.afr.com | 10-11 February 2018 The Well-Lived Life Edited by Emma Connors (emma.connors@fairfaxmedia.com.au) and Andrew Burke (aburke@afr.com.au)
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aside. Tosca was also determined to leave
but was too young to go on her own. She per-
suaded Maye, who wanted to do a PhD, to
visit Canada to see if she could study there.
While Maye was away she sent back a par-
ticularly upbeat report about Toronto. That
was enough for Tosca: when Maye got
home, she found that her 15-year-old daugh-
ter had sold the house and most of its con-
tents. All that was needed was Maye’s
signature. She signed. By way of explanation
she says, ‘‘my kids do very extraordinary
things that make sense.’’
The two women joined Elon and they all
moved into a cheap rental apartment in
Toronto. Capital controls in South Africa
meant they had limited access to the funds
from the sale of the house, so once again, the
MOTHER OF
family started up again with almost nothing.
Kimbal spent a year finishing school and
then joined them. They all went to university
and lived frugally. Maye signed up as a
model, started her PhD and began the slow
INVENTION
Above from left: business of building up a dietician’s practice
Kimbal Musk, again from scratch.
entrepreneur and When the children eventually moved out,
brother of Elon Maye relished her independence. She ate
Musk, in his food the children didn’t like; she walked
restaurant Upstairs naked round the apartment. She decided to
Family Her children have made waves with fast cars in Boulder, Colorado; move to New York on the grounds that New
SpaceX CEO Elon Yorkers walked fast and talked fast and were
and slow food. Maye Musk’s unconventional Musk. Right: An therefore her kind of people. Kimbal, a suc-
undated family cessful tech entrepreneur, wanted to learn
parenting style has produced a family of photo of Maye with how to cook, so he moved there too in 2000.
entrepreneurs, writes Natasha Loder. Elon (standing),
Kimbal and Tosca in
Then one bright September morning two
planes brought down the World Trade
‘O
South Africa. Below: Centre and he became a volunteer cook for
Tosca Musk, founder the firefighters. In the most extraordinary of
h God, that is so He, on the other side of the table, has his of PassionFlix Inc. times he found himself reminded of the
horrible,’’ grim- mother’s easy smile. After starting two tech- over the Kalahari desert in Namibia in her her children with training as budding entre- Bottom: Maye at the connect.’’ power of food to bring people together, and
aces Maye nology companies with Elon – Zip2 and father’s single-engine plane – ‘‘mostly air- preneurs. The children all helped out: Tosca 2017 CFDA Fashion Perhaps because they lived in Africa, per- by 2004 he had opened his first restaurant.
Musk, as PayPal – in 2004 he became a founding sick’’ – looking for a legendary lost city. The remembers writing letters for Maye and Awards. PHOTOS: NYT, haps because it was a different era, perhaps Eventually the whole family ended up on the
though I had father of the farm-to-table movement. He plane was her father’s passion, not a rich answering the phone. ‘‘It really helped us to AP, ALAMY because their parents were busy with their other side of America. Elon and Tosca live in
pointed out ver- has built 13 restaurants since then and has man’s toy: her parents were not wealthy but get a sense of independence as well as under- careers, the young Musks’ childhood had the Los Angeles area, and Kimbal is in
min in her son more on the way. They specialise in unpro- she remembers a home with mulberry trees, stand work ethics,’’ she recalls. During parts more than a pinch of ‘‘Just William’’ or Boulder. When Tosca had twins, Maye
Kimbal’s cessed, locally sourced foods. peaches, plums, oranges and lemons. At of their teenage years, the boys chose to go ‘‘Huckleberry Finn’’ about it. Led by Elon, packed up once again, and moved out West
impeccable new restaurant. All I had done The highlight of lunch is the 50:50 burger schools she was a ‘‘science nerd’’, and teach- to live with their father – a decision that the brothers created home-made rock- to help.
was to ask for her views on the current fash- – half beef, half mushroom and wholly deli- ers would send her to demonstrate math- Elon has since said he regretted. ets and explosives. They raced their In a way, the journey that made the Musks
ion for raw-food diets. ‘‘I went to a raw-food cious. ‘‘It’s the best burger I’ve ever had and I ematics to classes of older children. Her Left to explore the world for them- dirt bikes so hard that Kimbal fell is a classic American one, of people who
restaurant and afterwards I said, ‘Please take love my food,’’ Maye says with deep brains made her a magnet for bullies – South selves, each child spontaneously into a barbed-wire fence. They arrived the hard way from a difficult coun-
me out for a hamburger.’ I couldn’t eat any- emphasis on the word ‘‘love’’ with her strong Africa was a rough place – but her larger and developed strong – and very differ- walked door to door at night in a try. Kimbal has spoken of the difficulty of
thing.’’ South African accent. The burger, explains more athletic twin, Kaye, fought them off. ent – interests. Elon was an obsess- dangerous country selling Easter giving his children the sense of urgency he
Musk, a striking woman with cropped Kimbal, is a path to less and better meat. ‘‘I Independence came early, thanks to her ive reader and thinker from an eggs at a scandalous mark-up: once had when he first arrived and feared he
white hair, glowing skin and brilliant blue don’t think in 45 years I’ve ever seen any- striking features. She was modelling at 15 early age, so absorbed in his own Kimbal told customers sceptical might have to go back to South Africa. Elon
eyes, does not mince her words. As a dieti- body who ate enough vegetables,’’ Maye but expected the work to dry up by 18, so she world that his parents thought he of the price, ‘‘you are doing this to has tackled this dilemma of child rearing by
cian she has no truck with fads. As a mother adds as she tucks in. studied dietetics. By 21 she had her own prac- might have a hearing problem and support future capitalists.’’ They setting up a private school, which his five
– of Elon, the world’s most famous inventor, Another stand-out dish is the gluten-free tice. took him to the doctor. Drawn to tried to start up a video arcade. Par- children attend, that teaches problem-
Kimbal, a tech and food entrepreneur, and breaded calamari. Kimbal says his gluten- A year later, in 1970, she married an engin- computers he sold his first computer ental attention didn’t always point solving and matches the curriculum to the
Tosca, a film director who recently started a intolerant customers rave about it. Maye is eer, Errol Musk. Elon arrived nine months program when was 12. He struggled to them in the right direction: their father aptitudes and capabilities of the child. It is
streaming service to bring romance novels unimpressed. ‘‘Gluten is so ridiculous. Don’t later, Kimbal arrived about a year after that, make friends at school and was badly bul- took them to a casino (gambling was called Ad Astra, meaning ‘‘to the stars’’. Yet
to television – she has a similarly robust atti- invite me to a dinner with someone who is and not long after came a daughter, Tosca. lied. But he developed strong, lifelong bonds illegal). even the name of the school conceals the
E
tude. gluten-free. I ruin the party.’’ She remembers Maye’s marriage lasted nine years. After with his brother and sister which, to this day, same lingering irony about parenting. The
the divorce, she took the children and seem to serve as a stabilising influence in his lon has spoken with sadness of the Latin phrase that the space crowd live with
telling someone their problem with pizza
started on her own as a single, working life. After Thanksgiving, he posted a picture relationship with his father, but is actually: "per aspera ad astra’’ – through
was not gluten intolerance – they just ate too
My kids do very much of it. Is there anything in Kimbal’s
mother. Money was particularly tight. The of himself and Kimbal in the Rockies, arms Kimbal is more relaxed about some hardships, to the stars. If necessity is indeed
family couldn’t afford many things, such as around each other with the message ‘‘love of the trials of growing up. Family the mother of invention, how are successful
extraordinary fridge that his mother wouldn’t approve of?
He confesses to some almond milk. ‘‘It’s not
eating out and movies. Maye managed by my bro’’. difficulties aside, South Africa could be a people to raise enterprising offspring? They
things that make milk!’’ says Maye. ‘‘It’s sugar water flavoured
juggling her private practice as a dietician,
wellness talks and modelling. She cut the
Tosca, too, had her enthusiasms lit at a
young age. When she was four she watched
brutal place. When Maye found out that a
child had been caned at his school,
cannot, without fear of being unkind, foist
upon their children the challenges that they
with almonds!’’
sense. They are united, though, on their core
children’s hair, gave them manicures and the musical fantasy film Xanadu, which gave she told Kimbal to tell her if any-
thing like that happened to
overcame.
Yet it seems reasonable to believe that
pedicures. ‘‘You have no idea how nasty it is her a passion for movies. By the age of 18 she
beliefs about food: the need for humans to to give teen boys a pedicure,’’ she says. They had landed a job in a studio and from there him. Kimbal replied that he Maye had some influence on how these
eat good food and have access to it. Maye is were a well-behaved bunch, and weren’t went on to become a film director. As for got caned every day, and three individuals turned out. And her
Unlike most women of her generation – involved with Kimbal’s charity, which builds given a choice in the matter. ‘‘I wouldn’t Kimbal, Maye recalls taking the children to a banned her from com- approach to parenting was very different to
she is 69 – maternity has not defined Maye. outdoor ‘‘learning-garden’’ classrooms in allow them to be brats, I couldn’t afford grocery store when the boys were in their plaining about it. His the modern norm. By today’s standards, she
She has run her own nutrition business for schools. There are now 400 in six major cit- that.’’ early teens. ‘‘Elon would take a book and teacher had a drum of gave her children an outlandish degree of
45 years and has been a model for 54 years. ies across America, with more on the way. In contrast to today’s tiger mothers and read. Tosca would hang around me, and different implements, freedom to take risks, extraordinarily little
In an era in which parents and children are So much food is rubbish these days, and so helicopter parents, Maye did not hover over Kimbal would be picking up the peppers and which included a cricket supervision and made no attempt to shape
ever more closely intertwined as they navig- many people’s diets so poor, that foodies her children, schedule their lives, read to smelling them and saying ‘aaah’.’’ bat; the children were their interests or to determine their futures.
ate the hazards of competitive education, such as Kimbal and Maye talk about ‘‘real’’ them or check their homework; indeed, they While Maye regards cooking as ‘‘torture’’, made to walk to the front They made adult decisions at an early age,
she has a refreshing enthusiasm for her and food. Yet a good diet is the same as it has learned to forge her signature to sign off Kimbal was always an enthusiastic and of the class and pick their and even though the family was separated
her children’s independence. always been: full of fruits and vegetables, their work. She was hands-off, just as her ambitious cook. At 14, his sister recalls, he punishment. ‘‘A cricket bat often, the bond between them remained
Thanks to business’s growing enthusiasm whole grains and packed with nutrition. Eat- parents had been. ‘‘I didn’t interfere with came home with a fish too big to fit in the doesn’t hurt that much; what strong.
for older models, she seems to be getting ing this way is how Maye, and the three your lives,’’ Maye says to Kimbal, who oven, wrapped it in foil and stuck it on the really hurts is the thin cane or When lunch is over, Kimbal hurries off to
more, not less, successful. She has been on a Musk children, were brought up. responds that they felt very independent as barbecue. ‘‘He cooked it to perfection,’’ a ruler,’’ recalls Kimbal. start cooking his Thanksgiving meal for the
cereal box, featured in a Beyoncé video and Yet raising children is about more than children. When asked about her approach to Tosca remembers. ‘‘To perfection! I don’t Elon was the first to clan. Maye lingers. Her future looks bright.
starred in a campaign for Virgin America. food pyramids. Parenting – one of the great child-rearing she says deadpan, ‘‘I was a per- know how he knows how to do that.’’ leave at the age of She has worked hard all her life but she has
Once you have seen her unusual face, you subjects of our era – varies wildly, from age fect mother.’’ She and her son both break Kimbal’s cooking created connections. He 17, using a Cana- no desire to slow down. Her mother, she
find yourself recognising it in adverts. to age and from culture to culture, from indi- into gales of laughter. ‘‘Everyone should take says when he cooked, ‘‘people would sit dian passport says, worked until the age of 96. ‘‘I’m just get-
Today, she is sitting in a pool of bright vidual to individual. Still, we all want to raise lessons,’’ Kimbal teases. Was she never wor- down. My family would sit down. When I Maye had ting started,’’ she laughs. W
winter sunlight on the patio of Next Door, children who, among other attributes, have ried about whether they would find their didn’t cook, the food wasn’t very good…’’ – he obtained for 1843 MAGAZINE
Kimbal’s latest venture, in Longmont, Color- the independence and vision to make things way in life? ‘‘No,’’ she answers quickly, and pauses briefly to say a soft ‘‘sorry’’ to his him and a bit ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●
ado. It is the day before Thanksgiving and happen. So how did Maye raise these three then, ‘‘I didn’t have time to.’’ mother – ‘‘…we would just peck at it and go of money she Natasha Loderis The Economist’s health-care
tomorrow 30 members of the Musk family remarkable entrepreneurs? Her business, run from home, provided and watch TV. You didn’t really sit down and had set correspondent.
From top: Maye Musk at the Stella McCartney Autumn 2018 Presentation in Los Angeles last month; and, from left, will gather for a meal Kimbal is cooking at Maye’s own childhood was not a standard AFRGA1 0037
daughter Tosca, son Kimbal, Maye, and son Elon at Maye’s 50th birthday. PHOTOS: AP, NEW YORK TIMES his home in nearby Boulder. one. Family holidays were often spent flying
AFRGA1 0036
In a digital age where people We complement the agenda-setting news It starts with page one, where a bigger,
have less time than ever AFR The Australian Financial Review is known bolder masthead and magazine quality
for with big reads that recognise weekends photography and graphical do-ups make
Weekend is the newspaper that
are a time to kick back, too. Weekend Fin’s it consistently the most eye-catching paper
respects readers’ intelligence. long reads and Lunch with the AFR profiles among its weekend peers. This lively,
and Life & Leisure’s luxury liftout neatly contemporary and clear design extends
Compelling and thought-provoking but never
complement the intelligent analysis our into an unashamedly compact paper,
oversold, our news, analysis and features
crack team of political, business and embellished on the first weekend of most
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All up, it’s a package we’re proud of.
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Audience profile – Overview
READERSHIP* CIRCULATION^^
259,000 47,394*
GENDER*
Female 25 Male 75
% %
AGE*
14–29 16%
30–44 24%
45–64 33%
65 + 27%
DEMOGRAPHICS*
TERTIARY EDUCATED SOCIAL A GRADE C-SUITE REACH
71%
(vs. 36% population avg)
60%
(vs. 22% population avg)
12%
FULL-TIME INCOME *
UP TO $70K 23%
$70K TO $100K 14%
$100K TO $130K 21%
$130K + 42%
* Source: emmaTM conducted by Ipsos MediaCT, people 14+ for the 12 months ending October 2017.
^^ ABC December 2017
AFR WEEKEND
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AFR Weekend – Sections
AFRWEEKEND 29
SmartInvestor
Quick bites
With prices barely moving, consumers are still spending. Retail
spending rose 0.9 per cent in the December quarter, says CommSec,
while retail prices fell 0.1 per cent in the year to December. In 2017
Everything you need to know about your money we spent 8 per cent more on electrical and electronic goods.
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www.afr.com | 10-11 February 2018
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Edited by Debra Cleveland: dcleveland@fairfaxmedia.com.au Twitter: @ClevelandAFR
5 LESSONS ‘Bear’ outlines fundamental
Draper recommends his retired clients set couple of days relating to US employment
aside two to three years of living expenses in data. This is not the same as the sub-prime
cash so they don’t need to worry about a pro- mortgage crisis that led to the 2008 GFC.
change in market this week
longed weakness in share prices. In the case ‘‘Our view remains that it’s just another
FROM THE
of investors who gear into shares, Draper correction,’’ says Shane Oliver, head of
argues they should not be relying on investment strategy at AMP Capital.
dividend income to finance the loan, but ‘‘In this case, a higher read on US wages –
should have the means to service the debt compounded by some complex funds blow-
from other sources. ing up – appeared to trigger some mass
CORRECTION 2
selling. Neither of those alter the backdrop But even as stocks were reaching new
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The cut-through
SELL WHEN MARKETS of global synchronised growth,’’ says highs, bond prices were heading the other
ARE STRONG Draper. way. Low and falling bond yields have
It is notoriously difficult to do, but That said, professional investors are keep- underpinned a large chunk of asset price
the time to sell stocks is when share- ing a close eye on other data points that Patrick Commins gains since the GFC, a gift from central
markets are strong, not when they are col- might suggest that US inflation will acceler- banks via their extraordinarily supportive
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lapsing. That is a recipe for crystallising ate, which would trigger further interest rate What do you do when a mini-meltdown hits monetary policies of quantitative easing
Equities Investors may have taken a losses or, at the very least, limiting capital
gains. On that note, say experts, it is worth
rises. ‘‘It could change and we are keeping a
close eye on it,’’ says Garrett.
the markets and threatens to end a multi-
year bull market? You call a famed bear, of
(bond buying) and zero and negative
interest-rate policies.
haircut on markets this week but
4
investors checking their emotional response course. Gerard Minack is a former global Now that economies are finally gathering
to this week’s stockmarket falls. If they felt MAKE A WISH LIST head of strategy for Morgan Stanley. Well- steam, do central banks need to start
wise shareholders will learn from rattled to the point of wanting to hit the sell
button, investors either need to work on
Many professional investors Smart
Investor spoke to have wish lists of
known for calling the global financial crisis
(GFC), he now plies his insights on an
tightening perhaps faster than expected?
Bond investors must have been asking those
the experience, writes Sally Patten. their psyche or reduce the amount of risk in
the portfolio so they can get a better night’s
stocks they want to buy at decent
prices. In addition to the stock, they have
independent basis to a bevy of hedge funds
and asset managers around the world.
types of questions as US 10-year Treasury
yields moved from 2.05 per cent at the
sleep. either identified the desired buy price, or are Before we hear from Minack, a quick beginning of September to 2.4 per cent by
‘‘One of the biggest dangers for retail in the process of doing so. recap. This week, and after a unusually the end of 2018 and then spiked to 2.84 per
T
investors is themselves. The biggest lesson is ‘‘We’re very excited in times like this. It lengthy period of calm, markets went a bit cent by February 2.
to avoid emotional decisions,’’ says Pat Gar- clearly creates some opportunities,’’ says haywire. On Monday night the S&P 500 fell It was last Friday night when stronger-
hank goodness the week rett, chief executive of Six Park Asset Man- Chris Stott, chief investment officer at Wil- by more than 4 per cent – its worst decline than-expected US wage growth data seemed
is over. The S&P 500 agement. Garrett points out that the past son Asset Management. since August 2011 – on its way to a 10 per cent to flick the switch from sharemarket
index in the United States year has been unusual for its lack of volatility ‘‘This opens the door to value in certain fall in under two weeks. The ASX on investors pricing ‘‘growth and no inflation"
suffered its two biggest and that investors will need to get used to areas. We are now at the point where Tuesday had its biggest drop in two and a to ‘‘growth and most definitely the chance of
points falls in history, swings again. ‘‘The movement we saw this investors should be looking at the market. half years. Bourses around the world have inflation’’ – and therefore rate rises. Cue last
while the local bench- week was not that unusual if you look back The market is relatively cheap. We will be followed a similar trajectory. Volatility looks week’s tumult and a near 4 per cent drop in
mark plummeted nearly over 20 years. This is fairly typical short- buyers this month,’’ says Tony Davison of to be back, and in a big way. Some large Wall the ASX 200.
5 per cent in two days term behaviour when markets are spooked,’’ financial advice boutique Henderson Max- Street funds that bet on low volatility blew ‘‘The first thing to say is that everyone is
and then fell 52 points on Friday. The falls he says. well. up in a single night, erasing $US3 billion of out there drawing trend lines saying ‘this is
seemed all the more dramatic because they The decision about whether to work on Companies that Stott would like to pur- capital along the way. the end of the 35-year [bond] bull market’,’’
followed such a long period of market bliss. emotions or reduce portfolio risk should chase at lower prices include Seek, the Typically, the nasty turn came just as it Minack says. ‘‘What a stupid way to look at
In the midst of the mayhem, it was easy to depend, at least in part, on the time frame. online recruiter; Cleanaway, the recycling seemed investors had finally put the GFC things. Japan for me is still the template –
forget that the decline followed huge gains in But savers in their fifties and even sixties can and waste management company; Dom- behind them, 10 years after the event.
stock prices last year. afford to take some risk in parts of their port- ino’s Pizza; and furniture retailer Nick Scali. Minack reckons it was only in the latter half
But it is worth remembering just that. The folio, given rising life expectancy. Holdings that Stott is looking to top up of last year that markets turned ‘‘properly Now that economies are
S&P/ASX 200 rose from 5733 to 6065 in 2017 ‘‘Historical data shows that absent of a include mining services group Monadelph- bullish’’.
and is now sitting at 5838. Its US equivalent global financial crisis-type scenario, the best ous and Seven Group, which owns busi- ‘‘Up until then, it had effectively been
finally gathering steam,
surged 25 per cent last year, and on Thurs-
day night closed at 23,860 – still 21 per cent
thing to do is to ride out market gyrations if
you have a medium- to long-term outlook.
nesses in the industrial services, oil and gas
and media sectors. This week Wavestone
seven or eight years of markets climbing up
the wall of worry. But by the time we got to
do central banks need to
higher than at the start of last year. So equity Corrections are a normal and healthy part of Capital topped up its positions in share and the last third of last year, investors were start tightening perhaps
investors haven’t done too badly. the stockmarket. Be calm,’’ says Garrett. superannuation administration company dancing on top of the wall.’’
It is also worth remembering what caused Selling out of fear, he argues, is more risky Link Group and oil producer Woodside. The After racking up double-digit gains over faster than expected?
the crash and how short term – or long term than staying invested because it is accom- fund manager is keeping an eye on online the previous few months, during the past
– those causes might be. panied by the danger of buying back in to the retailer Carsales and infrastructure group two weeks world equities have dropped
The immediate catalyst was US jobs fig- market at the wrong time. Transurban, whose shares have fallen from around 6 per cent. In
ures, which showed wages growing faster
3
$13 to about $11.70 in just under two months. the context of the
than expected and weekly jobless claims hit- UNDERSTAND THE TRIGGER Davison’s wish list includes mining recent gains, the falls
ting a 45-year low, raising the prospect of existent, Bullard said in a speech. – are off the hook. Experts say investors ods is probably the best advice I can give,’’ FOR MARKET FALLS behemoth BHP, which he would like ideally are little more than a
higher inflation and interest rates. Analysts It also appears that algorithmic trading would be wise to learn the lessons that have says Mark Draper of GEM Capital in Understanding the catalyst for a fall to buy at $28.50, CSL ($135), data centre com- blip. Nonetheless, it
also pointed to a deteriorating US federal programs exacerbated the sharemarket falls been offered up this week. Here are five of Adelaide. is critical because investors need to pany NEXTDC ($5.25), gaming machine feels like something
budget as a secondary factor. But some eco- in the US, at least in the early part of the them. Being forced to sell can arise for several know if anything has happened that would manufacturer Aristocrat Leisure ($22.50), has changed. But has
1
nomists argue the wages data contains week. Algorithms are set up to react to cer- reasons. Retirees may need to sell assets to cause a fundamental change in the market online recruiter Seek ($17) and online real it? Could investors
anomalies and could well be revised next tain conditions. A fall of, say, 5 per cent in the MAKE SURE YOU ARE NOT A finance their lifestyle, savers may be parking outlook. estate company REA Group ($68). really just pick up
month. Some also suspect the jobless figures index, may trigger the machine to sell. FORCED SELLER money in the sharemarket to buy property ‘‘For example, if the US government Liam Shorte of Verante Financial Plan- where they left off?
might be overstated because data for several Reports out of the US suggest that many of Regardless of where financial mar- or investors may have borrowed to buy immediately imposed a 50 per cent tariff on ning is focused on income-yielding shares ‘‘That’s the big
states were estimated. the algorithms that sold equities on Monday kets are in the cycle, investors need to shares and face demands for loans to be all imports, it might cause you to reconsider for clients aged 55 and over on the grounds question, there’s a
Further, one of the presidents of the Fed- were ‘‘selling short’’. In other words, they ensure they are not in a position where they repaid. what the flow on effects might be to the that if he can pick up shares on a yield of chance that that is
eral Reserve, James Bullard, cautioned sold stocks to buy them back cheaper at a have to sell stocks – which can happen if ‘‘It comes down to time frames. If you put global economy and adjust your position- more than 6 per cent, it takes the pressure exactly what we do,’’
against drawing parallels between good later date. equity markets remain in the doldrums for a your money into equities and want to pull it ing,’’ says Draper. off the stocks having to generate capital Minack says. ‘‘We
news on the labour market front and higher Still, this is not to say that stockmarkets – couple of years. out within three years, you probably need to Few think that has occurred in the past growth as well. Shorte has his eye on SCA clean out some of
ILLUSTRATION: inflation. The relationship had broken down which have been turbo-charged by ultra ‘‘Not being a forced seller and having cash hold defensive assets and cash,’’ says Scott week. As Garrett points out, this week’s tur- Property Group, the real estate investment the ‘weakest hands’
SIMON LETCH in recent years and may now be non- cheap money since the global financial crisis set aside to get through difficult market peri- Farmer of Bravium Financial Planning. moil was caused by small data set over a Continued p32 and continue
climbing.’’ After all,
‘‘the fundamentals still remain supportive’’. Global equity strategist Gerard Minack.
With conditions so supportive, a more PHOTO: MICHELE MOSSOP
Wake-up call for investors to get real on returns
His advice in these sorts of routs is don’t says Alastair MacLeod of asset manager pertinent question is likely to be ‘‘what sort
panic, stay disciplined and wait for Wheelhouse Partners. It’s the tendency for of bull market do we go back to?’’ when this bull market ends, instead of
opportunities as the dust settles. financial markets to melt down far more ‘‘If it’s one that has tinges of the euphoria seeing a ‘V’, you see an ‘L’: yields go down
D’Amato argues that the correction is frequently and aggressively than investors of the preceding three or four months, you and stay down. This may be the end of the
‘‘perfectly timed’’ given the start of the expect ‘‘as fear turns to panic and everyone could have a fully-fledged bubble. Or do you bull market for sure, but from here we don’t
reporting season. tries to sell at the same time’’. get one with a much more rational, sober start a sustained bear market.’’
of 10 per cent last year and 10 per cent over normally’’, says Elio D’Amato, executive ‘‘Volatility creates opportunities and this ‘‘While statistically these events should be The ‘‘card-carrying secular stagnationist’’
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Hip pocket assessment of the fundamentals?’’
the last five years are not sustainable,’’ adds director at stock research house Lincoln is no different,’’ he adds. ‘‘We are on the quite rare, in reality they are not and in fact Minack seems to be leaning towards the Minack believes the ‘‘pain threshold’’ for
Oliver, head of investment strategy and Indicators. So while there is no need for a doorstep of reporting season and we are happen every eight or nine years on latter. rates is much lower than it used to be. Yields
chief economist at AMP Capital. ‘‘They’re massive rethink on equities, this is a reality about to get a fresh set of accounts come average,’’ he says. Retirees in particular ‘‘This year seems different,’’ he says. There can’t go too high because Western
Debra Cleveland likely to average around 7 per cent or so.’’ check. through and stocks are cheaper than they need to bear this in mind as they’re most seems to be a newfound appreciation that economies can’t handle it – there’s too much
Perspective is imperative, points out Ben ‘‘Investors had become complacent with were at the start of the month.’’ likely to ‘‘act against their own interests’’. ‘‘growth is no longer an unalloyed positive debt and not enough potential growth. The
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Is this rollercoaster week a wake-up call for Clark, portfolio manager of TMS Capital. markets always seemingly ‘going up’ while When prices fall for no reason other than We have seen this sort of market for equities’’. clear risk, then, is that the US Federal
investors to rethink their expectations of Remember where we are in the cycle, he also being unrealistic that rapid gains are price volatility, he says, the opportunities correction before, says D’Amato, and we ‘‘This is the definition of late cycle – when Reserve makes a policy error by tightening
returns from Australian shares? Yes, say the advises. ‘‘The US market had quadrupled the norm. When equity markets return on can be large. ‘‘And when you have a set of will see it again. you revise your growth forecasts up, you’ve too far and too quickly, prematurely choking
experts who concur this was the ‘‘correction from its GFC low and doubled from its pre- average 10 per cent, that is per annum not a new numbers and outlook statements to ‘‘This time the commentary is around got to revise up your rates forecast as well. off economic activity.
we had to have’’. GFC high. It’s in its 9th year, the second- monthly figure,’’ he adds. give you confidence you are in a great bond rates and inflation expectations rising That still makes for positive returns.’’ This is the thing most likely to trigger a
Solid growth globally and rising profits longest bull market in history, shortly to be Stocks and sectors that have run harder in business, then that is a perfect match! While in the US. Next time it will, no doubt, be So far, so good. The other major issue much nastier correction, potentially in the
should keep returns positive, says AMP’s the longest,’’ he adds. Equities still look recent times have come off the most, says sentiment may still be the theme through different.’’ facing investors is how far rates – and bond second half of this year, Minack reckons.
Shane Oliver, but we’re losing the tailwind more attractive than any other asset class Greg Smith, head of research at wealth February (even March), a cool head will Drawdowns of 10 per cent or more during yields – can climb before really upsetting the And for the first time ever, this year the Fed’s
of easy money, falling interest rates and ‘‘but history tells you now is a time to be management firm Fat Prophets. Markets uncover wonderful opportunities for bull markets are not uncommon, he adds. equities apple cart. ‘‘dot plot’’ of projected rate rises could go up.
ultralight low bond yields. As a result, he more cautious and opportunistic’’. globally are pulling back, but he points out businesses that are not only better than they ‘‘In fact, history tells us that the average It was last year’s broad, global upswing in ‘‘If we get wage pressures coming through
says, average returns are likely to slow into After a strong run-up in the US and in that Australia has lagged the US and stands were yesterday fundamentally, but are now bull market correction is around 13 per cent economic growth and attendant profit and pushing up, then that’s the kind of thing
the single digits and we’ll need to get used to Australia for the last four months, this up better in terms of valuation. ‘‘This should also cheaper.’’ and usually takes over four months to occur expansion that seem to have turned worried that could cause a proper correction in
increased volatility. ‘‘Average super returns week’s rout ‘‘is the market behaving contain the falls on the way down,’’ he says. Investors need to remember ‘‘tail risk’’, with another four months to fully recover.’’ sharemarket bulls into overconfident ones. equities.’’
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Heat is on Local CEOs wind farm p5 Weekend Fin
$8b offshore
earlier that Trump's Paris Study for
Russia for
out p5
Turnbull sayinghis options. Political way be less costly
know about politics, business
is an Pittsburgh p10
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LET could
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despite Mr
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withdrawal
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ll has no
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declares for
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consider
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Mr Joyce should World Trump
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Balenciaga’s
the Prime Turnbu
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p10
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to
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facts on China
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Phillip Coorey correspondent
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day in which opportunity
World Cupted
being
Trust deficit In a farcical intention of World Alternative
the events that matter in Australia and who’s losing it and what’s driving the
Deputy Prime
Minister
Chief political global market p16
by rethink the e Renewable
Before all the to Minister and press conferences, Mr ly coal-fired
power
torn down again Perspectiv
e Energy rebels
p18
approach toward
blitzkrieg
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on sex
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Gas and potential
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Nationals rush held duelling nation’s energy
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Perspectiv
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The Sophistica
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d the ban
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climate change
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Rowe p46
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and Tom McIlroy part of the
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staff, Gallery David
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Joyce questione Emissions Tar-
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s in and their will remain
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energy R&D.
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Phillip Coorey
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the parapet a new ‘‘Low LET
about oust- between ministers
a-
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Traveller was further
are talking for ’s condemn mix under
change scheme, Austra- for a LET
Homage
Mr Turnbull affair and
Nationals MPs as next week preparation lashed out at out. p46
● ● ●
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The case
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offers a way a joint report
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get’’ climate Bjorn Lomborg
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should tion of his extramaritalto meddle in
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help
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Joyce as early
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believes will
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Friday when
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ent had
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conflict, they
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commitments option
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pushed
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Inside government the governm on the bolstered on and
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ing Barnaby
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Coalition was
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Turnbull not
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Change Authority to the
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p47
Sources said
and finance. But it also ventures
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Paris accord
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after the federal war over the Deputy warned Mr of the Nationals. s while Philip Coorey
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they are lia meet its
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briefed by the Climate Energy Market Com-
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unofficially
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dictate a
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carbon emissionindustry
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consider what Coorey p47 today
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master of
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● ● ●
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● ● ●
● ● ●
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what ‘‘Far from assisting, ion more than a backbench are imposed, findings, which
Prime Minister’ defending. Phillip of energy of adopting mission, also
● ● ●
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● ● ●
● ● ●
anticipation
around the world. The news section
said despite
Australian economy. The Companies
Turnbull’s Emissions Intens-
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● ● ●
● ● ●
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s’’
● ● ●
free form
● ● ●
called Malcolm Magazine
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options’’. In
● ● ●
● ● ●
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● ● ●
certain emission Minister Josh rg, said an
● ● ●
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around this in. They
● ● ●
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Barnaby Joyce and harmful. from ‘‘low
● ● ●
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MPs began sector
● ● ●
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it locks people
● ● ●
● ● ●
● ● ●
Turnbull and revolts. a LET, Energy announced on Frydenbe
● ● ●
people were
saying d majority comments
inept in 2009, Mr couple of days, As right-win
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withdrew
be generated would be techno- on the electricity
could comman mate change went into These Frydenberg ity Scheme
no longer colleagues
and
angrily on Continued
p4 Donald Trump accord, sources. and would
include Clean Energy the best option. had
his r Scott Morrison to stir after the remained
support among that he should step Joyce rounded the Prime Treasure late on Friday,
insist- p16 the Paris climatethe Turn- logy agnostic and coal Tuesday ion, a Malcolm Turnbull Plus: New Zealand
day when Mr damage control of Mr Joyce was not
a der Ban welcome the US from ns e energy, gas Finance Corporat energy But given reasons, an
LET
there was a
desire , labelling
Malcolm Turnbull ts about his private
Diane Smith-Gan must be set p46 AFRGA1 A001 strong indicatioembrace the renewabl carbon capture and stor- . for political travel special
a messy putsch. ing the criticism Party and Standard there were uses $10 billion
green ruled it out
aside and avoidresumes the week after Minister’s commen and unnecessary. the National Editorial of lovers lost
p47
bull governm
ent would from that y, it it can be
developed
nt fund, would the next best option. indicates
Parliament was the reflection on to have Dean Ghosts to take effect age technolog od Chief Scientist
investme exten- was ’s modellin
g Life & Leisure
beyond those topics to reflect
MP said such life as inept,
harmful Coalition was not trying This is Rowan new LET schememeet Australia’s 2030 ‘‘The authority reductions
next but one the party, some wanted between the to their that Mr Turnbull as leader. help It is understorecommend a LET have its mandate in carbon achieve deep liftout AFRGA1 A001
As relations d to plunge Mr Joyce removed 2020 and to Alan Finkel
will
when he ded to invest that a LET can
anxiety inside week to persuade Mr threatene split over cli- s reduction target.
ise option storage tech- Continued
p4
of AFR Weekend mixes news breaks & Markets section of AFR Weekend
to try again
next partners
since the near emission s trading scheme, as a comprom report on energy capture and
lowest level Unlike an emission of carbon emitted hands his
final nology.
Joyce to go. scenes on Fri- tonne Prime Minister
and
unedifying in which every or an Emissions Intens- reform to the
There were
attracts a price, where polluting is free premiers in
a week.
(EIS),
ity Scheme which penalties
level above
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Leısure 9-11 February 2018
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www.afr.com | 22-26 December 2017 Edited by Emma Connors, email: emma.connors@fairfaxmedia.com.au
HARVEY WEINSTEIN DON BURKE
Miramax and The Weinstein Nine Network and Burke’s production
Company company, CTC (Cut The Crap) Production
More than 80 women in the A series of women have publicly accused
movie industry have accused the Burke’s Backyard star of sexual
B
the film producer and harassment. Burke went on A Current
eing named Time Per- executive, of sexual Affair denying the allegations and claiming
son of the Year may not harassment, sexual assault, or he had Asperger’s syndrome.
have quite the same rape. Weinstein denies ‘‘any
global impact it once non-consensual sex’’.
had. But the magazine’s
decision to choose ‘‘The
Silence Breakers’’ for
A deeper look at the big issues shaping Australia and the world. Perspective
2017 was still a recogni-
tion of the abrupt shift in the tolerance and
treatment of sexual harassment that has
occurred this year.
Women revealing their own personal
experiences – previously kept grimly private
by the individuals involved or conveniently
ignored by those who preferred not to know
– has turned out to have an extraordinary,
compounding momentum.
#MeToo became the battle cry in what
dives into politics, economics and business but also dips into the arts,
had been a hidden war.
SEX IN THE
That Time’s 2017 citation came one year
after it had selected Donald Trump for the
same award was no coincidence. For many
women, the election of Trump – despite
being exposed (most spectacularly by him-
NEW WORLD
self on tape) as a repeat sexual harassment
offender – incited a furious determination to
call out such behaviour by other men. So
many, many other men.
But although originating as an attempt to
society and sport. It aims to surprise and inform readers, applying the
out-Trump a despised President Trump, it
became the hypocrisy surrounding the
most powerful, most well-known men – in
Hollywood, in the media, in politics – that Toxic men This year has seen a massive
resonated most loudly.
The Weinstein effect translated instantly shift in the tolerance and treatment of
globally because his behaviour was so gross
and so consistent – yet so constantly, blith- sexual harassment. What does that
ely blotted out of consciousness and con-
science because he was ... Harvey mean in Australian workplaces?
Weinstein.
It was a spectacular demonstration that Jennifer Hewett reports.
Financial Review’s intelligence to topics that are not always covered in the
being a sexual predator was hardly confined
to the hard right of American politics or
power. Not that the notion of ‘‘the casting
couch’’ was anything new in Hollywood.
Actors from child star Shirley Temple to their executive assistants, for example. That more of female reporters came to light. had just sacked its own star Matt Lauer after
Marilyn Monroe to Joan Collins had all told can obviously mean an implicit power And while Trump remains defiantly stories of his similar behaviour also sur-
just some of their ghastly stories over the imbalance – particularly when it’s still usu- tweeting away in the White House, the con- faced after being long ignored. ‘‘This is the
years, only the more well-known tip of an ally the man in the more senior role. servative, anti-abortion standard bearer fastest-moving social change we’ve seen in
ugly reality lurking underneath the creation In some cases, it can also lead to at least Roy Moore – strongly backed by Trump to decades, and it began with individual acts of
of global magic and film imagery. the perception of favouritism. But one be the new senator from Republican Ala- courage by hundreds of women – and some
weekday paper. It’s a must read for anyone who wants to really understand
But for all the outrage about Trump, lib- woman’s notion of harassment can be wel- bama – was defeated by a Democrat after men, too – who came forward to tell their
eral Hollywood – women as well as men – comed by another sensing mutual interest. allegations of his molestation of teenage own stories,’’ Felsenthal said.
had also refused to hold certain men to any Who should make moral judgments or girls decades ago. Other US politicians from The general response to these stories has
sort of account despite widespread know- precise rules of engagement on all of that? both parties have announced untimely exits indeed come a long way this year from the
ledge of their sexual venality. It was just too What counts as sexual harassment or just from politics after being accused of being cultural mores of 1991 when Anita Hill cre-
difficult for those wanting to advance them- sexual attraction? Can – or should – work- sexual predators. ated huge controversy in the US by testifying
selves or needing a powerful man’s imprim- places be free of flirtations between poten- Australia also had its own version of a about the sexual behaviour of then
atur in the long-running Hollywood tially interested people? Is a one-night stand Weinstein moment featuring Don Burke, Supreme Court nominee Clarence Thomas
adaptation of The Hunger Games. more or less acceptable than a continuing former Nine TV presenter and star of the during her time working for him. The tele-
This conspiracy of silence also included once-wildly popular Burke’s Backyard. vised coverage galvanised the country but
media investigations that went nowhere, MEGATRENDS The allegations about his behaviour over the result was that she was heavily criticised
how the world works.
not least because of disinterest in senior decades featured the same shocking exam- and he was confirmed.
media circles in alienating the popular and ples of sexual bullying and aggravated con- Hill, now a professor of law and women’s
the powerful. tempt for women – familiar to most of his studies at Brandeis University, said this
That was until the dam wall was workplace colleagues but covered up in the month that this ‘‘huge moment’’ of out-
breached this year and the flood of accusa- This is the fastest- interests of the greater commercial good. spokenness and awareness needs legal and
tions came pouring out at an unstoppable,
overwhelming rate. And although the initial
moving social change There will undoubtedly be more. institutional support to have a lasting
impact. Yet for most women and most men,
investigative stories on Weinstein came we’ve seen in decades. It’s certainly no longer considered the notion of sexual harassment in the
from traditional media, the ability of this Edward Felsenthal , Time editor-in-chief adequate to try to rationalise such extreme workplace tends to be more banal, far less
flood to spread so far so fast, picking up behaviour – or the lack of reaction by man- newsworthy and still very much in the grey
other stories along the way for added force, agement – as merely symptomatic of how area of human behaviour rather than the
also demonstrated the reach of social affair? Will office Christmas parties of the much times and views have changed. This black and white of the law.
media. It not only altered mainstream per- future be alcohol-free, fun-constrained was always egregious, intolerable and inex- It’s more about the slightly sleazy tone or
ceptions. It created a new, self re-enforcing events – just in case? cusable. And now it can all become embar- Actor Kevin Spacey look, the explicitly sexual jokes or sugges-
reality that could no longer be dismissed or Between the extremes of outright sexual rassingly, abruptly public rather than and Uber CEO tions typically made by older men to young
threatened away. harassment and offence taken at innocently remaining discreetly covert. Travis Kalanick were women, the friendly greeting embrace that
Yet little of this is as straightforward as it meant invitations, there’s a lot more Nor is it just old-time media or Hollywood felled this year by is just a little too lingering or intense.
can seem when considering the conduct of a nuanced territory. or old-style bosses in the spotlight. The Fin- accusations of Not that any of this type of behaviour
Weinstein or a plainly lecherous manager But what is clear is that, finally, the old- ancial Times person of the year is a young abusive behaviour. should have to be considered acceptable
trying to take advantage of his position. boys network and political or commercial female software engineer who revealed the either – or just part of getting on with it in
Many a romance, marriages as well as con- self interest are no longer sufficient protect- egregious sexual harassment culture at business rather than being typecast for
sensual affairs, begin in the office. ive barriers against the intrusion of #MeToo Uber, including by now-departed chief exec- making an unnecessary fuss or being,
The stories of female law clerks and their – whether for American stars like Kevin utive Travis Kalanick. heaven forbid, a trouble maker.
new partners also being senior law partners Spacey or British politicians like suddenly Time editor-in-chief Edward Felsenthal Human resources departments, as well as
at the same law firm are stereotypical for a ex-defence secretary Michael Fallon, who made the announcement of Time’s 2017 boards of directors, are now far more alert –
reason – along with those of executives and resigned after examples of knee-patting and choice on NBC’s Today program – which Continued next page
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22-26 December 2017
Your holiday WeekendFin Life&Leisure Review
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Weekend Fin
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Inside story After six years as one of the AFR’s China correspondents,Angus Grigg reveals
how agents tried to recruit him as a spy, and what it says about China’s age of anxiety. Explore the trends shaping our society; enjoy features on culture, literature,
SPIES LIKE ME art, fashion and film in writing that is in-depth and beautifully textured.
Each week, there’s a stunning pictorial feature, showcasing what’s exciting
in art, photography or travel, and hear from the influential, the famous,
and the quiet achievers as they lunch with the AFR’s writers and explain
what drives them. Weekend Fin lets you stay ahead of the curve with this
T
he offer to become a My would-be handlers, who worked for a
chocolate box of a section.
Chinese spy was made security consultancy affiliated with the Over the Australian summer I was instructed to make
over a lunch of Sichuan
fish, spicy tofu and stir-
Chinese government, had at least shown a
willingness to talk. They had even passed on
appointments with senior government officials, ministers
fried green beans. It was a couple of worthwhile tips over coffee dur- and others in the foreign policy community.
September 2013 and the ing our previous meetings.
trade was to be a simple But as it turned out they had no interest in
one – money in exchange being a source for the foreign press. After the AFR’s Angus It was then explained I should tell them would be delivered and what they would do
for information. lunch plates were cleared away and the tea Grigg. when my newspaper was close to publishing with the information sought. At the time I
I had been in China for 17 months at that pot refilled, their offer was delivered. It was articles that contained fresh revelations was not sure if I had misunderstood the con-
point and, like most foreign correspondents, wrapped in the camaraderie of our sup- about Chinese cyber hacking or industrial versation, even though their pitch was
was frustrated by the Communist Party’s posedly shared profession. espionage. delivered in tone-perfect English.
vice-like grip on information in a political ‘‘We are just like journalists,’’ said the ‘‘If you let us know, we could share our Two months later those doubts were
system that had changed little since the days younger man, smiling in his tight-fitting bonuses with you,’’ they said. erased when a second, far more significant,
of Mao Zedong. pink polo shirt that revealed significant time So there was the inducement – a vaguely request was made. This time there was no
But on that autumn day in Shanghai’s for- spent at the gym. ‘‘We need to get stories defined pledge to share ‘‘bonuses’’. pretence of shared occupations or loosely
mer French Concession, there was the pos- before our competition and when this hap- To this day I regret not asking the worded offers of remuneration.
sibility of a breakthrough. pens we receive bigger bonuses.’’ quantum of those ‘‘bonuses’’, how they Continued next page
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