1 00:00:05,240 --> 00:00:06,640 Speaker 1: This is what the Flux. 2 00:00:06,720 --> 00:00:09,240 Speaker 2: I'm justin and I'm harsh Deep and it's Wednesday, the 3 00:00:09,240 --> 00:00:10,520 Speaker 2: twenty second of May G. 4 00:00:10,760 --> 00:00:13,560 Speaker 1: I never thought we'd be talking about a battle between Scarlett. 5 00:00:13,560 --> 00:00:17,000 Speaker 1: You're Hansen and chet gbt's found as Sam Algman? Who 6 00:00:17,120 --> 00:00:19,800 Speaker 1: are Sam Algman? Asked the scar Joe to voice the 7 00:00:19,840 --> 00:00:23,759 Speaker 1: new chat GPT voice Sky Interesting, Yeah, she rejected, But 8 00:00:23,880 --> 00:00:27,000 Speaker 1: fast forward to now and Sky sounds you really similar 9 00:00:27,080 --> 00:00:30,440 Speaker 1: to Scargo. Apparently Altwound was so desperate to have a 10 00:00:30,520 --> 00:00:33,159 Speaker 1: voice sound like Scarjrow's character in the movie Her and 11 00:00:33,360 --> 00:00:34,519 Speaker 1: tried to replicate it. 12 00:00:34,600 --> 00:00:37,479 Speaker 2: Oh my god, get this Jazz. The average Australian has 13 00:00:37,560 --> 00:00:40,160 Speaker 2: one point three credit cards according to the Reserve Bank 14 00:00:40,159 --> 00:00:43,320 Speaker 2: of Australia FLUXPAM. If you're stuck on the credit card 15 00:00:43,360 --> 00:00:46,120 Speaker 2: hamster wheel, we got you covered in the Flux Academy 16 00:00:46,159 --> 00:00:48,320 Speaker 2: this month. In this course, we break down all the 17 00:00:48,320 --> 00:00:50,920 Speaker 2: different types of debt, the good, the bad, and the ugly. 18 00:00:51,080 --> 00:00:53,080 Speaker 2: We also guide you through the best ways to pay 19 00:00:53,120 --> 00:00:55,320 Speaker 2: down those debts and get on top of your money. 20 00:00:55,360 --> 00:00:57,760 Speaker 2: So download the Flux app and check at the Academy 21 00:00:57,760 --> 00:00:58,400 Speaker 2: to learn more. 22 00:00:58,600 --> 00:01:01,240 Speaker 1: Three bar these stories today, HG. 23 00:01:02,000 --> 00:01:02,920 Speaker 2: Let's get into it. 24 00:01:02,840 --> 00:01:05,880 Speaker 1: For our first Telstra will cut over nine percent of 25 00:01:05,920 --> 00:01:08,920 Speaker 1: its workforce, or two thousand, eight hundred jobs by the 26 00:01:08,959 --> 00:01:11,759 Speaker 1: end of twenty twenty four in order to stay competitive 27 00:01:11,840 --> 00:01:12,480 Speaker 1: in the market. 28 00:01:12,680 --> 00:01:16,039 Speaker 2: Interesting, I feel like this might actually hurt its service. 29 00:01:16,240 --> 00:01:17,080 Speaker 2: What's going on here? 30 00:01:17,160 --> 00:01:20,200 Speaker 1: The big t Telstra is the largest telco network in Australia. 31 00:01:20,280 --> 00:01:24,440 Speaker 1: We're talking over twenty two million retail mobile services. 32 00:01:23,920 --> 00:01:26,560 Speaker 2: And it's got over thirty one thousand employees, or. 33 00:01:26,560 --> 00:01:29,319 Speaker 1: At least they did prior to the CEO's announcement yesterday 34 00:01:29,560 --> 00:01:31,479 Speaker 1: where she warned that they will be cutting two thousand, 35 00:01:31,560 --> 00:01:33,440 Speaker 1: eight hundred jobs from their workforce. 36 00:01:33,600 --> 00:01:36,800 Speaker 2: In particular, the cuts will come from Telstra's enterprise unit, 37 00:01:36,840 --> 00:01:39,240 Speaker 2: which works for Australia's biggest company. 38 00:01:38,959 --> 00:01:42,800 Speaker 1: Jog a Agal Energy Machas, the Government of South Australia and. 39 00:01:43,120 --> 00:01:46,440 Speaker 2: In twenty twenty one, Telstra planned a cost cutting activity 40 00:01:46,520 --> 00:01:49,280 Speaker 2: that would cut five hundred million dollars in costs by 41 00:01:49,280 --> 00:01:51,400 Speaker 2: the end of the twenty twenty five financial year. 42 00:01:51,440 --> 00:01:53,960 Speaker 1: But in February this year, Telstra warned they were behind 43 00:01:54,000 --> 00:01:55,600 Speaker 1: the eight ball on those goals. 44 00:01:55,840 --> 00:01:58,840 Speaker 2: So now those major job cuts are expected to save 45 00:01:58,920 --> 00:02:02,360 Speaker 2: Telstra nearly three hundred and fifty million dollars and get 46 00:02:02,360 --> 00:02:04,840 Speaker 2: closer to their cost cutting goals for FY twenty five. 47 00:02:04,920 --> 00:02:06,720 Speaker 1: But Itch, you've got to wonder what this means for 48 00:02:06,760 --> 00:02:09,480 Speaker 1: the quality of the enterprise business where a large number 49 00:02:09,480 --> 00:02:10,720 Speaker 1: of these job cuts will happen. 50 00:02:10,800 --> 00:02:13,000 Speaker 2: So tell me, Jars, what is the key learning. 51 00:02:13,160 --> 00:02:15,880 Speaker 1: If the knife's too sharp, one cut can wound the 52 00:02:16,160 --> 00:02:16,919 Speaker 1: entire business. 53 00:02:17,080 --> 00:02:20,720 Speaker 2: You see, Telstra's enterprise business was already hurt hard over 54 00:02:20,720 --> 00:02:21,840 Speaker 2: the past twelve months. 55 00:02:21,960 --> 00:02:23,560 Speaker 1: It Cha, you need to stay out for this one. 56 00:02:24,120 --> 00:02:27,520 Speaker 1: Telster's enterprise business saw its first half earnings dropped sixty 57 00:02:27,639 --> 00:02:28,440 Speaker 1: seven percent. 58 00:02:28,680 --> 00:02:30,560 Speaker 2: That means in the first half of the year it 59 00:02:30,680 --> 00:02:33,160 Speaker 2: generated just seventy one million dollars in earning. 60 00:02:33,240 --> 00:02:35,000 Speaker 1: Think about how small that is as a fraction of 61 00:02:35,000 --> 00:02:37,760 Speaker 1: Telstre's four billion dollars in overall earnings. 62 00:02:37,840 --> 00:02:40,600 Speaker 2: Part of this is due to landlines becoming obsolete, not 63 00:02:40,720 --> 00:02:42,560 Speaker 2: just in homes but in offices too. 64 00:02:42,680 --> 00:02:46,640 Speaker 1: Hellu zoom, but HD. By reducing the workforce, particularly in 65 00:02:46,639 --> 00:02:49,720 Speaker 1: the service oriented industry like the telco industry, it can 66 00:02:49,760 --> 00:02:51,399 Speaker 1: have serious consequences. 67 00:02:51,440 --> 00:02:55,640 Speaker 2: For example, by reducing its enterprise unit, Telster risks deteriorating 68 00:02:55,680 --> 00:02:57,920 Speaker 2: relationships with its major corporate clients. 69 00:02:57,960 --> 00:03:01,120 Speaker 1: We rely on a personalized and a pretty prompt service. 70 00:03:01,000 --> 00:03:05,320 Speaker 2: For our second story casino giants. Star Entertainment has revealed 71 00:03:05,320 --> 00:03:08,359 Speaker 2: that it's received interest from potential buyers, but hard Rock 72 00:03:08,400 --> 00:03:10,639 Speaker 2: International definitely isn't one of them. 73 00:03:10,760 --> 00:03:12,519 Speaker 1: It sounds like a bit of beef going on there. 74 00:03:12,560 --> 00:03:13,640 Speaker 1: So what is the story. 75 00:03:13,800 --> 00:03:18,000 Speaker 2: Well, Star Entertainment is the Aussie gambling and entertainment company 76 00:03:18,040 --> 00:03:21,600 Speaker 2: that owns major casinos in Brisbane, Gold Coast and Sydney. 77 00:03:21,760 --> 00:03:24,359 Speaker 1: Since twenty twenty one, Star Entertainment has been in bigger 78 00:03:24,400 --> 00:03:26,960 Speaker 1: crisis mode than the Royal Family YEP. 79 00:03:27,040 --> 00:03:29,760 Speaker 2: Star was exposed for its lack of compliance with anti 80 00:03:29,760 --> 00:03:30,960 Speaker 2: money laundering laws and. 81 00:03:30,919 --> 00:03:33,400 Speaker 1: This led to the Star copping major fines, the Sydney 82 00:03:33,400 --> 00:03:35,640 Speaker 1: and Brisbane casinho's losing their licenses and. 83 00:03:35,680 --> 00:03:37,960 Speaker 2: Just last month the chair of Star resigning too. 84 00:03:38,240 --> 00:03:40,720 Speaker 1: Now a cheet, Star reveild that it's received interest for 85 00:03:40,720 --> 00:03:43,600 Speaker 1: a potential takeover and I was just one party. Apparently 86 00:03:43,720 --> 00:03:44,360 Speaker 1: quite a few. 87 00:03:44,640 --> 00:03:47,040 Speaker 2: And when it was rumored that hard Rock International, the 88 00:03:47,160 --> 00:03:50,480 Speaker 2: US hospitality giant, was one of those interested parties, Stars 89 00:03:50,480 --> 00:03:52,880 Speaker 2: share price jumped twenty percent. 90 00:03:52,680 --> 00:03:55,000 Speaker 1: But hard Rock was quickly shut down those rumors and 91 00:03:55,040 --> 00:03:57,760 Speaker 1: make it very clear they have nothing and probably never 92 00:03:57,840 --> 00:03:59,960 Speaker 1: one to have anything to do with Star Entertainment. 93 00:04:00,360 --> 00:04:03,840 Speaker 2: Talk about rejection, but that doesn't mean there aren't others 94 00:04:03,880 --> 00:04:06,360 Speaker 2: eyeing Star as a potential takeovers. 95 00:04:05,920 --> 00:04:09,800 Speaker 1: Especially given Star's net tangible asset value is currently higher 96 00:04:09,880 --> 00:04:11,000 Speaker 1: than its market value. 97 00:04:11,160 --> 00:04:13,240 Speaker 2: So tell me what is the key learning here. 98 00:04:13,440 --> 00:04:16,400 Speaker 1: Net tangible assets is the value of all the physical 99 00:04:16,600 --> 00:04:20,839 Speaker 1: or tangible assets of a company minus all of its liabilities. 100 00:04:20,160 --> 00:04:24,240 Speaker 2: So Jazz. Technically, a company's market capitalization should be the 101 00:04:24,279 --> 00:04:27,600 Speaker 2: sum of its tangible assets plus any non tangible assets. 102 00:04:27,680 --> 00:04:30,599 Speaker 1: But in Star's case, its net tangible assets we're sitting 103 00:04:30,600 --> 00:04:33,000 Speaker 1: at eighty nine cents per share in its twenty twenty 104 00:04:33,000 --> 00:04:35,440 Speaker 1: three results, but right now its share price is sitting 105 00:04:35,480 --> 00:04:37,160 Speaker 1: at fifty cents, So. 106 00:04:37,120 --> 00:04:39,800 Speaker 2: The market's value of Star is less than that of 107 00:04:39,800 --> 00:04:41,600 Speaker 2: its net tangible assets. 108 00:04:41,240 --> 00:04:43,520 Speaker 1: And a she This just highlights that the share market 109 00:04:43,600 --> 00:04:47,680 Speaker 1: isn't always a rational beats for our third and final story, 110 00:04:47,880 --> 00:04:51,080 Speaker 1: Microsoft has released a new line of laptops, using AI 111 00:04:51,200 --> 00:04:53,919 Speaker 1: chips to run the software and taking a few shots 112 00:04:53,920 --> 00:04:55,440 Speaker 1: at Apple during the announcement as well. 113 00:04:55,600 --> 00:04:58,080 Speaker 2: Of course, we love nothing more than two of the 114 00:04:58,160 --> 00:05:01,120 Speaker 2: biggest companies in the world trading bobs like school yard 115 00:05:01,240 --> 00:05:03,400 Speaker 2: kids spill the TKHG. Well. 116 00:05:03,440 --> 00:05:05,560 Speaker 1: Microsoft, which was founded all the way back in nineteen 117 00:05:05,600 --> 00:05:08,680 Speaker 1: seventy five, is the largest company in the whole wide 118 00:05:08,680 --> 00:05:11,960 Speaker 1: world based on its three trillion US dollar market cap. 119 00:05:11,839 --> 00:05:14,119 Speaker 2: In front of its big rival Apple in the number 120 00:05:14,120 --> 00:05:14,560 Speaker 2: two spot. 121 00:05:14,640 --> 00:05:17,560 Speaker 1: But actually now Microsoft announced have released a new line 122 00:05:17,600 --> 00:05:19,839 Speaker 1: of laptops called co Pilot Plus PC. 123 00:05:20,160 --> 00:05:22,440 Speaker 2: And it ain't just any PC. It's pretty much an 124 00:05:22,520 --> 00:05:23,799 Speaker 2: AI driven machine. 125 00:05:23,839 --> 00:05:26,440 Speaker 1: For example, you could search blue car in the search 126 00:05:26,480 --> 00:05:28,840 Speaker 1: bar and will treat any document with a blue car. 127 00:05:29,040 --> 00:05:30,880 Speaker 2: That's pretty standard, but also. 128 00:05:30,640 --> 00:05:32,560 Speaker 1: Any photo with a blue car that you've saved, any 129 00:05:32,640 --> 00:05:34,640 Speaker 1: video with a blue car, or even any search that 130 00:05:34,680 --> 00:05:36,240 Speaker 1: you've made with a bluecar in it. 131 00:05:36,600 --> 00:05:38,880 Speaker 2: Essentially, they want it to be like your business and 132 00:05:39,040 --> 00:05:39,920 Speaker 2: personal assistant. 133 00:05:40,040 --> 00:05:41,880 Speaker 1: Plus they claim to have a longer battery life than 134 00:05:41,880 --> 00:05:43,360 Speaker 1: the latest Max shots fire. 135 00:05:43,480 --> 00:05:47,360 Speaker 2: Oh and this is Microsoft's way of combining its hardware 136 00:05:47,440 --> 00:05:50,800 Speaker 2: roots with its new wish pivot towards artificial intelligence. 137 00:05:50,880 --> 00:05:53,120 Speaker 1: Got to keep reinventing h So what is the key 138 00:05:53,200 --> 00:05:53,680 Speaker 1: learning here? 139 00:05:53,760 --> 00:05:56,800 Speaker 2: If you don't reinvent yourself over and over again, you 140 00:05:57,000 --> 00:05:58,920 Speaker 2: risk losing your relevance for good. 141 00:05:59,000 --> 00:06:01,680 Speaker 1: Gotta hand it to Microsoft. They've shown a pretty skillful 142 00:06:01,800 --> 00:06:04,480 Speaker 1: art of transformation throughout its forty year lifespan. 143 00:06:04,720 --> 00:06:07,920 Speaker 2: YEP, It's continuously adapted its business model to stay ahead 144 00:06:07,960 --> 00:06:08,560 Speaker 2: of the tech curve. 145 00:06:08,640 --> 00:06:10,640 Speaker 1: Think back to nineteen seventy five h G. When the 146 00:06:10,640 --> 00:06:14,520 Speaker 1: movie Draws came out and Microsoft had started selling computers. 147 00:06:14,120 --> 00:06:16,680 Speaker 2: But by nineteen eighty it had already pivoted its way 148 00:06:16,720 --> 00:06:17,720 Speaker 2: into operating systems. 149 00:06:17,760 --> 00:06:20,839 Speaker 1: By nineteen ninety, it had transformed into the productivity beheamoth 150 00:06:20,880 --> 00:06:23,400 Speaker 1: that we know today as Word, PowerPoint, and Excel. 151 00:06:23,560 --> 00:06:27,560 Speaker 2: And just as Microsoft's relevance began to decline around twenty fourteen, 152 00:06:27,839 --> 00:06:30,640 Speaker 2: it pulled a cloud computing out of its magical hat. 153 00:06:30,560 --> 00:06:33,719 Speaker 1: And now impossibly its grandest pivot of all time, It's 154 00:06:33,760 --> 00:06:36,520 Speaker 1: focused deeply on OI with its new partnership with open Ai, 155 00:06:36,800 --> 00:06:38,920 Speaker 1: and it's already started to bear fruit for them. A 156 00:06:39,040 --> 00:06:41,280 Speaker 1: she I love seeing in the Fox Academy this month. 157 00:06:41,320 --> 00:06:43,800 Speaker 1: The difference between the Snowball method and the Avalanche method 158 00:06:43,880 --> 00:06:45,680 Speaker 1: some of the best ways to pay down your debt 159 00:06:45,800 --> 00:06:48,120 Speaker 1: fast and keep motivated as well to Fox down. If 160 00:06:48,160 --> 00:06:49,560 Speaker 1: you want to learn how to pay down your debts 161 00:06:49,560 --> 00:06:51,320 Speaker 1: fast and download the Fox app and check out the 162 00:06:51,360 --> 00:06:52,200 Speaker 1: Academy this month. 163 00:06:52,240 --> 00:06:54,120 Speaker 2: Thanks for listening, and we'll see you on Friday.