Speaker 1: This is what the Flux.
Speaker 2: I'm justin and I'm harsh Deep and it's Wednesday, the
Speaker 2: twenty second of May G.
Speaker 1: I never thought we'd be talking about a battle between Scarlett.
Speaker 1: You're Hansen and chet gbt's found as Sam Algman? Who
Speaker 1: are Sam Algman? Asked the scar Joe to voice the
Speaker 1: new chat GPT voice Sky Interesting, Yeah, she rejected, But
Speaker 1: fast forward to now and Sky sounds you really similar
Speaker 1: to Scargo. Apparently Altwound was so desperate to have a
Speaker 1: voice sound like Scarjrow's character in the movie Her and
Speaker 1: tried to replicate it.
Speaker 2: Oh my god, get this Jazz. The average Australian has
Speaker 2: one point three credit cards according to the Reserve Bank
Speaker 2: of Australia FLUXPAM. If you're stuck on the credit card
Speaker 2: hamster wheel, we got you covered in the Flux Academy
Speaker 2: this month. In this course, we break down all the
Speaker 2: different types of debt, the good, the bad, and the ugly.
Speaker 2: We also guide you through the best ways to pay
Speaker 2: down those debts and get on top of your money.
Speaker 2: So download the Flux app and check at the Academy
Speaker 2: to learn more.
Speaker 1: Three bar these stories today, HG.
Speaker 2: Let's get into it.
Speaker 1: For our first Telstra will cut over nine percent of
Speaker 1: its workforce, or two thousand, eight hundred jobs by the
Speaker 1: end of twenty twenty four in order to stay competitive
Speaker 1: in the market.
Speaker 2: Interesting, I feel like this might actually hurt its service.
Speaker 2: What's going on here?
Speaker 1: The big t Telstra is the largest telco network in Australia.
Speaker 1: We're talking over twenty two million retail mobile services.
Speaker 2: And it's got over thirty one thousand employees, or.
Speaker 1: At least they did prior to the CEO's announcement yesterday
Speaker 1: where she warned that they will be cutting two thousand,
Speaker 1: eight hundred jobs from their workforce.
Speaker 2: In particular, the cuts will come from Telstra's enterprise unit,
Speaker 2: which works for Australia's biggest company.
Speaker 1: Jog a Agal Energy Machas, the Government of South Australia and.
Speaker 2: In twenty twenty one, Telstra planned a cost cutting activity
Speaker 2: that would cut five hundred million dollars in costs by
Speaker 2: the end of the twenty twenty five financial year.
Speaker 1: But in February this year, Telstra warned they were behind
Speaker 1: the eight ball on those goals.
Speaker 2: So now those major job cuts are expected to save
Speaker 2: Telstra nearly three hundred and fifty million dollars and get
Speaker 2: closer to their cost cutting goals for FY twenty five.
Speaker 1: But Itch, you've got to wonder what this means for
Speaker 1: the quality of the enterprise business where a large number
Speaker 1: of these job cuts will happen.
Speaker 2: So tell me, Jars, what is the key learning.
Speaker 1: If the knife's too sharp, one cut can wound the
Speaker 1: entire business.
Speaker 2: You see, Telstra's enterprise business was already hurt hard over
Speaker 2: the past twelve months.
Speaker 1: It Cha, you need to stay out for this one.
Speaker 1: Telster's enterprise business saw its first half earnings dropped sixty
Speaker 1: seven percent.
Speaker 2: That means in the first half of the year it
Speaker 2: generated just seventy one million dollars in earning.
Speaker 1: Think about how small that is as a fraction of
Speaker 1: Telstre's four billion dollars in overall earnings.
Speaker 2: Part of this is due to landlines becoming obsolete, not
Speaker 2: just in homes but in offices too.
Speaker 1: Hellu zoom, but HD. By reducing the workforce, particularly in
Speaker 1: the service oriented industry like the telco industry, it can
Speaker 1: have serious consequences.
Speaker 2: For example, by reducing its enterprise unit, Telster risks deteriorating
Speaker 2: relationships with its major corporate clients.
Speaker 1: We rely on a personalized and a pretty prompt service.
Speaker 2: For our second story casino giants. Star Entertainment has revealed
Speaker 2: that it's received interest from potential buyers, but hard Rock
Speaker 2: International definitely isn't one of them.
Speaker 1: It sounds like a bit of beef going on there.
Speaker 1: So what is the story.
Speaker 2: Well, Star Entertainment is the Aussie gambling and entertainment company
Speaker 2: that owns major casinos in Brisbane, Gold Coast and Sydney.
Speaker 1: Since twenty twenty one, Star Entertainment has been in bigger
Speaker 1: crisis mode than the Royal Family YEP.
Speaker 2: Star was exposed for its lack of compliance with anti
Speaker 2: money laundering laws and.
Speaker 1: This led to the Star copping major fines, the Sydney
Speaker 1: and Brisbane casinho's losing their licenses and.
Speaker 2: Just last month the chair of Star resigning too.
Speaker 1: Now a cheet, Star reveild that it's received interest for
Speaker 1: a potential takeover and I was just one party. Apparently
Speaker 1: quite a few.
Speaker 2: And when it was rumored that hard Rock International, the
Speaker 2: US hospitality giant, was one of those interested parties, Stars
Speaker 2: share price jumped twenty percent.
Speaker 1: But hard Rock was quickly shut down those rumors and
Speaker 1: make it very clear they have nothing and probably never
Speaker 1: one to have anything to do with Star Entertainment.
Speaker 2: Talk about rejection, but that doesn't mean there aren't others
Speaker 2: eyeing Star as a potential takeovers.
Speaker 1: Especially given Star's net tangible asset value is currently higher
Speaker 1: than its market value.
Speaker 2: So tell me what is the key learning here.
Speaker 1: Net tangible assets is the value of all the physical
Speaker 1: or tangible assets of a company minus all of its liabilities.
Speaker 2: So Jazz. Technically, a company's market capitalization should be the
Speaker 2: sum of its tangible assets plus any non tangible assets.
Speaker 1: But in Star's case, its net tangible assets we're sitting
Speaker 1: at eighty nine cents per share in its twenty twenty
Speaker 1: three results, but right now its share price is sitting
Speaker 1: at fifty cents, So.
Speaker 2: The market's value of Star is less than that of
Speaker 2: its net tangible assets.
Speaker 1: And a she This just highlights that the share market
Speaker 1: isn't always a rational beats for our third and final story,
Speaker 1: Microsoft has released a new line of laptops, using AI
Speaker 1: chips to run the software and taking a few shots
Speaker 1: at Apple during the announcement as well.
Speaker 2: Of course, we love nothing more than two of the
Speaker 2: biggest companies in the world trading bobs like school yard
Speaker 2: kids spill the TKHG. Well.
Speaker 1: Microsoft, which was founded all the way back in nineteen
Speaker 1: seventy five, is the largest company in the whole wide
Speaker 1: world based on its three trillion US dollar market cap.
Speaker 2: In front of its big rival Apple in the number
Speaker 2: two spot.
Speaker 1: But actually now Microsoft announced have released a new line
Speaker 1: of laptops called co Pilot Plus PC.
Speaker 2: And it ain't just any PC. It's pretty much an
Speaker 2: AI driven machine.
Speaker 1: For example, you could search blue car in the search
Speaker 1: bar and will treat any document with a blue car.
Speaker 2: That's pretty standard, but also.
Speaker 1: Any photo with a blue car that you've saved, any
Speaker 1: video with a blue car, or even any search that
Speaker 1: you've made with a bluecar in it.
Speaker 2: Essentially, they want it to be like your business and
Speaker 2: personal assistant.
Speaker 1: Plus they claim to have a longer battery life than
Speaker 1: the latest Max shots fire.
Speaker 2: Oh and this is Microsoft's way of combining its hardware
Speaker 2: roots with its new wish pivot towards artificial intelligence.
Speaker 1: Got to keep reinventing h So what is the key
Speaker 1: learning here?
Speaker 2: If you don't reinvent yourself over and over again, you
Speaker 2: risk losing your relevance for good.
Speaker 1: Gotta hand it to Microsoft. They've shown a pretty skillful
Speaker 1: art of transformation throughout its forty year lifespan.
Speaker 2: YEP, It's continuously adapted its business model to stay ahead
Speaker 2: of the tech curve.
Speaker 1: Think back to nineteen seventy five h G. When the
Speaker 1: movie Draws came out and Microsoft had started selling computers.
Speaker 2: But by nineteen eighty it had already pivoted its way
Speaker 2: into operating systems.
Speaker 1: By nineteen ninety, it had transformed into the productivity beheamoth
Speaker 1: that we know today as Word, PowerPoint, and Excel.
Speaker 2: And just as Microsoft's relevance began to decline around twenty fourteen,
Speaker 2: it pulled a cloud computing out of its magical hat.
Speaker 1: And now impossibly its grandest pivot of all time, It's
Speaker 1: focused deeply on OI with its new partnership with open Ai,
Speaker 1: and it's already started to bear fruit for them. A
Speaker 1: she I love seeing in the Fox Academy this month.
Speaker 1: The difference between the Snowball method and the Avalanche method
Speaker 1: some of the best ways to pay down your debt
Speaker 1: fast and keep motivated as well to Fox down. If
Speaker 1: you want to learn how to pay down your debts
Speaker 1: fast and download the Fox app and check out the
Speaker 1: Academy this month.
Speaker 2: Thanks for listening, and we'll see you on Friday.