Heat and winds are threatening to widen Australia's bushfire crisis, with three states warned to expect their worst conditions of the season so far.
Soaring temperatures in South Australia prompted "catastrophic" alerts - the highest danger rating - on Wednesday.
Parts of Victoria have been issued the same warning for Thursday, while the threat in Tasmania is also increasing.
Six people have died since last month in massive bushfires which are burning elsewhere in the country.
Those blazes - in New South Wales (NSW) and Queensland - have destroyed more than 500 houses and prompted debates on the impacts of drought and climate change.
Fires in South Australia (SA) prompted emergency warnings on Wednesday as temperatures neared 45C (113F) in parts of the state, exacerbated by winds of up to 90km/h (55mph).
Officials switched off electricity to about 10,000 homes and businesses to reduce the risk of new fires. Such blazes are most commonly sparked by winds bringing down power lines.
"All areas of the state are in danger today, with the potential for fires which do start to be uncontrollable by fire crews," a Country Fire Service spokeswoman told the BBC.
The southern state has endured its driest first nine months of any year on record, said Australia's Bureau of Meteorology. No significant rainfall is forecast for the coming months.
Officials in Victoria have issued a "code red" - its equivalent of a catastrophic warning - for the state's north, warning residents there to evacuate immediately.
Tasmania's threat level of "severe" - its most dangerous for the season - meant that any fire there would be difficult to control, officials said.
In NSW and Queensland, officials warned that forecast weather had the potential to intensify existing blazes. Western Australia was also issued catastrophic alerts in the past week.
Climate change influence
Scientists and experts say that Australia's fire season has grown longer and more intense due to climate change.
According to the Bureau of Meteorology, climate change had led to an increase in extreme heat events and raised the severity of other natural disasters, such as drought.
Last year the nation experienced its warmest summer on record. Official figures also show 2018 and 2017 were Australia's third and fourth-hottest years on record respectively.
As the fires rage on, Australia's conservative government has been criticised over its efforts to address climate change. Last year, a UN report said the nation was falling short of its Paris climate agreement commitments to cut CO2 emissions.
We’ve all been there and know how much it hurts to see your car being destroyed by a hail storm. No matter if we are talking about an expensive project car or for your daily driver, it’s never a pleasant sight – and we can only imagine the feelings going through this young lady’s head while watching her poor Ford Fiesta being hammered by a massive hail storm just yesterday.
On Sunday afternoon, the Sunshine Coast in Queensland, Australia, was hit by a hail “the size of a cricket ball,” as reported by 7news, resulting in extensive damage to hundreds of cars and homes. The video above captures the disaster and the minutes after that with the young lady walking us around her car and describing the damage done by the storm.
Poor Aussies:
“My car was the worst out of all of them. Unfortunately, it couldn’t fit in the garage. This side is probably the worst of them all, […] and then the back and the roof of the car are pretty bad as well, all smashed,” Lisa Thomas explains.
According to 7news, the Royal Automobile Club of Queensland had received 1,250 vehicle claims and 298 home claims by Monday afternoon local time. It is believed that hundreds, if not thousands, more vehicles are also affected. Almost 20,000 houses were without power after the storm.
"The damage from this storm has been extensive," RACQ spokeswoman Lucinda Ross commented. "We’ve seen holes in windscreens and paintwork as well as damage to patios and roofs of homes."
The costs of the damage done by the massive hail storm are not known at the moment and it is not clear if they will rival the $1.39 billion in claims after a superstorm ripped up Brisbane in 2014.
In today's Market Foolery, host Chris Hill talks with Australia's Motley Fool Money host Scott Phillips about some of what he's seeing on the other side of the world. Tune in to hear Scott's takes on some American tech companies, like Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), and more; a couple of tech trends that are shaping the Australian market; how Australia's television ads scene is similar and different from the U.S. one; how Australia is looking at the U.S. China trade war, and what it could mean for its economy; a couple of exciting Australian companies you might want to add to your watch list; and more.
Chris Hill: It's Thursday, Nov. 14. Welcome to Market Foolery! I'm Chris Hill. As mentioned earlier in the week, we're at Foolapalooza, which is our annual meeting. I'm happy to say we were able to record this earlier in the week with the host of Motley Fool Money, the No. 1 business show in Australia. It's the one and only Scott Phillips.
Scott Phillips: Chris Hill, g'day!
Hill: So good to see you, my friend!
Phillips: Thank you, sir! It's very good to be with you!
Hill: Pleasure to have you in the studio! And, yes, for those unfamiliar, or those who are new to this podcast, yes, we have Motley Fool Money here in the States; there's also a Motley Fool Money in Australia, which Scott is the host of. If you're not listening to it, you really should check it out.
Let's start with this. One of the things that you do on your show is check in the view from down under on some of the biggest companies here in the States. I'm curious what you think of the current state of some of the tech behemoths -- in particular Apple, Alphabet, Microsoft. Go in any order you want.
Phillips: Chris, look, I am telling our investors at home to invest in these businesses, in the companies that are, I use the phrase inventing the future, which sounds like a wonderful marketing tag line that someone should be using. But they literally are. The businesses that are literally changing the way we do what we do -- the way we consume entertainment, the way we work, the way we live. These are the businesses that are literally creating the products and services of the future. So, you've got to be investing in these kind of companies.
Now, all of that said, tech is a really fascinating space and time right now. We've seen Apple just hit high after high after high. It's a really interesting time to think about what comes next. Disney+, of course, having just launched recently. So much movement in tech. I have to say, for what it's worth, as a group, I'm incredibly bullish on the long-term future of these companies. Individually, I think there's a whole lot of questions yet to be answered, and a whole lot yet to play out.
Hill: It's pretty amazing, when you think about the narrative, particularly around hardware. For so long, for decades, it was as simple as, "Well, the cost comes down over time." We've seen that certainly with televisions. A flat screen TV with wonderful high def and all that, that's going to cost you less in real dollars than it would a decade ago. But, Apple, and their ability to continue to command premium prices for their products is really astounding.
Phillips: It is. And Warren Buffett said very nicely, I won't quote him directly, the idea that the phone screen is the most valuable real estate in the world continues to be true. If you think about it, yes, they're incredibly expensive devices. Think about how many hours a day quite literally we spend with our eyes looking 12 or 8 inches from our bodies, looking at the phone in our hand to see what's going on -- emails, social media, appointments, entertainment, web browsing, a lot. It is literally the new device. When you go back to those tech companies, I think this is the really interesting part -- where does connected technology broadly go? Anirban Mahanti I work with on Motley Fool Money in Australia, the human computer interface, that entire thing -- I watch a little bit of TV. I've checked on some American football when I've been here. The number of ads I've seen for the Google Nest, the Facebook Portal... hopefully it won't last very long. The wearables revolution. This is going to continue to be huge. Plenty of ads for Alexa. The whole lot. This is very much the new frontier. Past that, wearables technology, how that moves forward. This has a long, long way to play out. I'm really bullish about the hardware and software makers, the revolution coming there, and continue to come, whether it's Google Glass or Apple Watch, or it's frankly something none of us have thought of, but in a lab somewhere in those companies, they're spending a fortune, and a lot of people working on those things. You don't have to know what's coming next. But it's a very, very good bet these guys will either invent it or they'll buy it. Either way, if you're a shareholder, you're going to win.
Hill: I know that broadcast television has been, as an industry, in decline over the last couple of decades, as streaming services like Netflix, Hulu, etc., are on the rise. That said, I'm glad you mentioned the television ads while you were watching the football game. I find television ads to be instructive in the sense that they cost a lot of money, and I think it is an excellent window into what a company decides to promote, and the messages they decide to push. In the same way, as Buffett said, the phone screen is the most valuable real estate, if you've got time to make a 30-second television ad, you have to be very intentional about what you're going to promote, what the message is going to be. I'm curious, television in Australia, are these big tech companies doing similar advertisements down there?
Phillips: What's fascinating is, Amazon is massive here. I'm an Amazon shareholder, for full disclosure. I'm also Alphabet shareholder. The Alexa hasn't gone anywhere near dominating the Australian market the way it has here, because Amazon itself isn't very big yet in Australia. It's all Google Home, all the time. Google has made a massive, massive mark. Whether it's the Mini, the Max, all of those new devices, that remains a really strong place. In terms of television, look, they are struggling meaningfully for advertising dollars and viewing numbers. The Australian economy is softer than the U.S. economy. You guys are doing very, very well in absolute terms, but also relatively compared to Australia. That's a tough ad market for TV. Live sport -- back to your point about sport -- is really the only thing left going for live television in Australia. It's live TV and reality TV. I imagine it's probably the same in the U.S. Outside that, what do they have that you can't get on Netflix, you can't get on some streaming services locally, in Australia as well? Disney+, Apple TV+. They're going to be the new way of consuming non-temporal entertainment -- so, the idea of, not actually live at the time. That's where it's at. Live TV thus far is all about sport, and thus far, the TV stations are hanging onto that for grim life, because they lose that, they're in trouble.
Hill: What is the tech scene in Australia these days?
Phillips: Really fascinating. We haven't had a lot of tech for a long time. We've caught the second wave. Australian tech was a no man's land. It feels a bit harsh, it probably is, but relative to what's happening in the U.S. and most of the rest of the world, we haven't had a lot.
Two really big things that have changed in the tech space in Australia. Some of that's come over to America already. Buy now, pay later. I'm not sure how big that is in the U.S. now. For listeners, people older than you and me, Chris, we're young men, will remember Laybuy, when you go and you put some money down, then pick up your product in two or three months after you've paid it off. Buy now, pay later is the reverse of that. Afterpay is the company that's really leading that. Kim Kardashian has jumped on that here, I know. It is just taking the Australian retail landscape by storm. Young people in particular seem to all have it. Almost every decent retailer any size offers this buy now, pay later idea. Rather than handing over your cash or putting your credit card or debit card over the counter, you're saying, "I'll pay it off in four installments over four weeks." Now, JMo talks about the war on cash. This is absolutely war on cash territory. Another way to pay, often for those people who don't have credit cards, can't get credit cards, are younger, and have a different way to pay. Buy the pair of jeans now, pay it off over four or six weeks. That's really big.
The other thing that's changing is what we call financial technology platforms. The ability to take management of people's money, for a fund manager, for a bank. A lot of Australian tech innovators have taken over that space. The big banks in Australia own the entire financial relationship with almost everybody. They're disrupting that really meaningfully.
Two relatively niche areas, but they're really big business for Australia. There's some really successful multi billion dollar companies. That's small in the U.S. In Australia, that's big. There are some really meaningful changes in those two technology spaces.
Hill: To what extent, if any, does the trade war between the U.S. and China impact investing in Australia?
Phillips: We don't yet know, but it's scary. The first thing is, to the extent it impacts global growth, global economic activity, that's a big deal. Two of our biggest trading partners, funnily enough, China and the U.S. Look, if it remains just between China and the U.S., everyone else is OK, we're fine. China is Australia's largest purchaser of raw materials and minerals. We sell a lot of iron to China. If that slows down, that hurts the Australian investor, it hurts the Australian economy, it hurts the Australian Federal Budget position. So, really, really big deal there.
For consumption products, America is our biggest consumer, our biggest export partner. Again, same thing. If the U.S. economy slows down, there are some direct and indirect impacts that really... the old line in Australia used to be, and still is to some degree, if America sneezes, Australia catches a cold. That remains, probably more so now, if America or China sneeze, then we're in trouble.
We're pretty worried. If it does become a bigger deal, either directly or indirectly, we've got a lot of pain to feel if it goes badly. Australia's economy is not in such a good position right now that we can afford that external shock.
Hill: Before we wrap up, you mentioned Afterpay. What is another stock for any U.S. investor who's thinking about exploring investment opportunities in Australia? What is a stock they should put on their watch list?
Phillips: Chris, I thought I had one that made some sense to you, made some sense to our conversation. I know you're not a beer man. You're a whiskey man.
Hill: I am not a beer man, but I appreciate the investment opportunities that beer presents.
Phillips: Could he do in a wine tipple, potentially?
Hill: [laughs] Absolutely!
Phillips: Excellent! There we go. Now we've got some common ground. And I'll throw China into the mix. There is an Australian company known as Treasury Wine Estates. Treasury Wine Estates sells some really high-quality Australian, French, and American wines wide around the world. Particularly, the big growth now is going into China. Now, if you still believe, as I do, that over the long term, China is a huge consumer market opportunity -- Australian wine into China is growing at 20% per annum in volume terms, and another 20% per annum in price terms.
Hill: Those are nice trends.
Phillips: They're nice numbers, right? Chinese consumers are drinking more wine, but more importantly, more premium wine. People like Treasury Wine Estates are getting higher and higher prices for that wine. We know this is a massive market -- 1.3 billion people at last count. If you can get a just a few of those to want to buy some of the more expensive wines, because there are more millionaires in China than the rest of the world, you start to think it's a pretty attractive market to sell premium reputation products, the ones you want to be seen consuming. Whiskey is one of those, of course. Wine is another one. Some of the best French, American, and particularly Australian wines into China, I think, is a huge, huge long-term opportunity.
Bumps along the way, absolutely. Trade wars, trade embargoes. There'll be issues around importation. That'll come and go. For a relatively safe, normal, average, food consumption stock, it'll be bumpy because of those issues. But the long-term trends are fantastic. So, Treasury Wine Estates. If you're on the ASX, the code is TWE. Those are the international brokerage accounts. Treasury, I think, is going to be a really good long-term play.
Hill: Historically, when you have come to Fool headquarters here in Virginia, from Sydney, you've been kind enough to make the trip with a couple of boxes of Tim Tams. Delicious cookie. Any chance you brought a little something from Treasury Wine Estates along with you this time?
Phillips: I didn't, Chris, but I can. Although, later on this afternoon, we are going to open a new bag of things called Tim Tam Bites. You want to be there for that.
Hill: I will be there for that! Check out the Motley Fool MoneyAustralia podcast. I'm going to include a couple of links in the description of this show. It's a fabulous show. It is on my regular list every week. I love listening to you and Anirban! Thanks, I appreciate you making the trip! I know you're busy as can be when you're here, so I appreciate you coming in the studio.
Phillips: It's my pleasure! Thank you for having me!
Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. That'll do it for this edition of MarketFoolery! The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening! We'll see you on Monday!
More than 60 fires are burning across New South Wales, Australia. The blazes have killed at least three and destroyed hundreds of homes.
(Pictured) A firefighter works on controlled back burns on Nov. 14 in Sydney.
New South Wales (NSW) Rural Fire Service firefighters work to contain a bushfire that spread from the Gospers Mountain fire, in Colo Heights, on Nov. 16.
A property is destroyed by fire, on Nov. 16.
New South Wales Rural Fire Service firefighters work to contain the bushfire, in Colo Heights, on Nov. 16.
A message from residents hangs from a tree in an area affected by bushfires in Colo Heights, on Nov. 16.
New South Wales (NSW) Rural Fire Service firefighters prepare to contain the bushfire, in Putty, on Nov. 16.
A kangaroo escapes the fire as the fire front approaches a property, on Nov. 15, in Colo Heights.
Flames illuminate the sky over a property on Putty road, on Nov. 15, in Colo Heights.
Fire crews wait at a property along Putty road as the fire front approaches on Nov. 15 in Colo Heights. The warning has been issued for a 80,000-hectare blaze at Gospers Mountain, which is burning in the direction of Colo Heights.
Fire retardant covers an area close by a property, on Nov. 15, in Colo Heights.
Bushfire smoke clouds over the Hawkesbury River on Nov. 15 in Brooklyn. An estimated million hectares of land has been burned by bushfire across following catastrophic fire conditions - the highest possible level of bushfire danger.
People watch as the fire front approaches their home at Nabiac, some 350kms north of Sydney, on Nov. 15.
A cloud of smoke rising from a bushfire on Gospers Mountains looms over Colo Heights, on Nov. 13. (Image was issued on Nov. 15).
A thick haze from bushfires engulfs Brisbane, Queensland, on Nov. 15. Bushfire conditions are continuing to deteriorate as extremely hot air is pushed across the state.
In this image made from video, huge plumes of smoke billow from trees on fire in Gospers Mountain, on Nov. 15.
This NASA Modis satellite image provided by Maxar shows smoke from wildfires burning, in New South Wales, on Nov. 14.
A charred car remains on Nov. 14 following devastating fires.
A sign indicating koalas live in the area stands in a forest near the town of Taree on Nov. 14.
A fire crew gathers next to a water bombing helicopter on Nov. 14.
Firefighters work on controlled back burns on Nov. 14.
A local walks on a farm as flames approach near the town of Taree on Nov. 14.
A man uses a wet towel to help put out flames as they encroach on farmland near the town of Taree on Nov. 14.
A farmer, bottom, watches as firefighters, top, put out flames near the town of Taree on Nov. 14.
Resident Warren Smith inspects the damage after returning to find his house destroyed in the bushfires near the small town of Nana Glen, some 373 miles north of Sydney, on Nov. 13.
Neighbors Teresa de Ruyter (L) and Michelle Wilson (R) embrace after returning to their homes on Nov. 13.
Flames from the Gospers Mountain bushfire reach the areas surrounding Colo Heights on Nov. 13 in Sydney, Australia.
RFS Firefighters battle a spot fire on Nov. 13.
Danny Wearne surveys the bushfire damage to his property on Nov. 13.
A bushfire burns outside a property near Taree, 218 miles north of Sydney on Nov. 12.
NSW Rural Fire Service firefighters mop up after a bushfire in the suburb of Llandilo on Nov. 12 in Sydney, Australia.
Charred trees are seen at the Woodford residential area on Nov. 12.
A spokesperson shows media a fire prediction on Nov. 12.
NSW Fire & Rescue Commissioner Paul Baxter talks to media at Sydney Olympic Park on Nov. 12.
A firefighter doses a bushfire in the residential area of Sydney on Nov. 12.
Locals are seen attending to Horses at the Evacuation Area at French's Forest Showgrounds on Nov. 12.
Jamie Fato prepares to stop an out of control fire entering Owen Whalan's property at Koorainghat, near Taree, New South Wales state, on Nov. 12.
A helicopter drops water on a homestead as bushfires impact on farmland near the small town of Nana Glen, some 373 miles of north of Sydney on Nov. 12.
A Gloucester fire crew member fights flames from a bushfire on Nov. 12.
A bushfire burns out of control in Hillville road near Taree, 217 miles north of Sydney, on Nov. 12.
The bridge in Macksville on the Mid North Coast of NSW is covered in a shroud of bushfire smoke, on Nov. 11.
Firefighters and emergency service members prepare for deployment to fight bushfires, at a fire command center on Nov. 12 in Boonah, Queensland.
This Nov. 8, 2019, satellite photo taken by NASA shows hot, dry and windy weather conditions as bushfires burn in the eastern part of News South Wales state.
A fire and rescue team inspect the damage around Torrington in Glen Innes, New South Wales, on Nov. 11.
Roads are closed as a bushfire still smolder in Old Bar, north of Sydney, on Nov. 10.
Australian Prime Minister Scott Morrison (L) talks to residents at an evacuation center in Taree, north of Sydney, on Nov. 10.
The remains of a house are seen after a bushfire destroyed a property in Old Bar, north of Sydney, on Nov. 10.
Firefighters tackle a bushfire to save a home in Taree, north of Sydney, on Nov. 9.
Photo taken on Nov. 9, shows bushfires taken from a plane in over northeastern New South Wales.
A fire bombing helicopter works to contain a bushfire along Old Bar, New South Wales, on Nov. 9.
A dehydrated and injured Koala receives treatment at the Port Macquarie Koala Hospital in Port Macquarie, on Nov. 2.
50/50 SLIDES
Slideshow by photo services
Microsoft News US is supporting Microsoft News Australia in its campaign to help respond to the devastating bushfires that are ravaging the country. Together we are raising fundsfor Australian Red Cross, St Vincent De Paul Society and The Salvation Army. These organizations are helping communities across the country. You can help by donating here . For the latest news on this disaster from MSN Australia, visit Bushfire emergency.
An Australian man has been accused of deliberately lighting a fire to protect his cannabis crop, sparking an out-of-control bushfire as blazes rage along the country's east coast.
Four people have been killed and more than 300 homes destroyed in devastating bushfires that have razed more than one million hectares (2.5 million acres) along the eastern seaboard in just over a week.
Police said a 51-year-old man appeared before a local court on Saturday charged with intentionally lighting a fire at Ebor in New South Wales state in an attempt to protect his cannabis crop.
The alleged bungled attempt on Thursday at backburning -- a practice used by firefighters to clear the undergrowth that fuels fires -- quickly spread the flames and the man did not try to extinguish the blaze, according to police.
The Ebor fire is about 10,000 hectares in size -- and is still burning three days later.
Authorities believe arsonists are behind several other bushfires across badly-hit New South Wales as well as in neighbouring Queensland, and have appealed to the public for information leading to more arrests.
On Sunday, there were 130 fires burning across the two states, large swathes of which have already been ravaged by a crippling drought.
New South Wales firefighters undertook backburning as temperatures dipped on Saturday night, ahead of an expected deterioration in fire conditions early next week.
Parts of Queensland were facing "extreme fire danger" as high temperatures and low humidity were forecast to combine with storms to create challenging conditions for firefighters.
Bushfire-prone Australia has experienced a horrific start to its fire season, which scientists say is beginning earlier and becoming more extreme as a result of climate change, which is raising temperatures and sapping moisture from the environment.
Growing calls to curb fossil fuels and drastically cut greenhouse gas emissions are being ignored by the country's conservative government, which is eager to protect its highly lucrative mining industry.
