1 00:00:05,280 --> 00:00:06,680 Speaker 1: This is what the flux. 2 00:00:06,760 --> 00:00:09,240 Speaker 2: I'm justin and I'm harsh Deep and it's Wednesday, the 3 00:00:09,320 --> 00:00:10,160 Speaker 2: fifteenth of May. 4 00:00:10,360 --> 00:00:12,520 Speaker 1: HD. It is great to have you back on the pod. 5 00:00:12,640 --> 00:00:14,560 Speaker 1: Looking forward to you dominating in the hot seat over 6 00:00:14,560 --> 00:00:15,560 Speaker 1: the next couple of weeks. 7 00:00:15,760 --> 00:00:17,439 Speaker 2: So excited to be back. It's going to be a 8 00:00:17,440 --> 00:00:18,320 Speaker 2: fun few weeks. 9 00:00:18,480 --> 00:00:20,880 Speaker 1: Now. It seems like me Maynia at the moment. Maybe 10 00:00:20,920 --> 00:00:23,840 Speaker 1: back because the US gaming company game Stop has jumped 11 00:00:23,880 --> 00:00:25,320 Speaker 1: over seventy four percent. 12 00:00:26,160 --> 00:00:28,440 Speaker 2: It's great to be back, and what a day to 13 00:00:28,520 --> 00:00:31,760 Speaker 2: be back, especially after last night's budget. And while we'll 14 00:00:31,800 --> 00:00:33,720 Speaker 2: be touching on it on the pod today, we'll have 15 00:00:33,760 --> 00:00:36,360 Speaker 2: a deep dive on all the federal government's key initiatives 16 00:00:36,360 --> 00:00:36,639 Speaker 2: in the. 17 00:00:36,560 --> 00:00:40,840 Speaker 1: FLUSAT three Educational stories today. HD, let's get into it 18 00:00:40,920 --> 00:00:44,320 Speaker 1: for our first. The Labor government has dropped this year's 19 00:00:44,360 --> 00:00:47,640 Speaker 1: federal budget with more than nine billion dollars in surplus. 20 00:00:47,800 --> 00:00:50,720 Speaker 1: And this year the budget is all about cost of living. 21 00:00:50,560 --> 00:00:53,440 Speaker 2: Second successive surplus. It must be high fives all around 22 00:00:53,479 --> 00:00:55,400 Speaker 2: Parliament House. What's the story here? 23 00:00:55,480 --> 00:00:58,440 Speaker 1: Does well? HD? Every year, the federal government delivers its budget, 24 00:00:58,480 --> 00:01:01,160 Speaker 1: which tells us how much money government is collecting and 25 00:01:01,440 --> 00:01:02,600 Speaker 1: where it's spending it and. 26 00:01:02,600 --> 00:01:05,560 Speaker 2: Most importantly, how it'll impact us in our daily lives. 27 00:01:05,600 --> 00:01:07,959 Speaker 1: Now. One of the big focuses in this year's budget 28 00:01:08,000 --> 00:01:09,959 Speaker 1: was to address the cost of living but. 29 00:01:09,920 --> 00:01:12,319 Speaker 2: At the same time not give away too much money 30 00:01:12,319 --> 00:01:13,120 Speaker 2: to drive inflation. 31 00:01:13,360 --> 00:01:15,760 Speaker 1: So as part of this budget there are some modified 32 00:01:15,840 --> 00:01:16,720 Speaker 1: Stage three. 33 00:01:16,520 --> 00:01:19,200 Speaker 2: Tax cuts which will mean higher tax savings for low 34 00:01:19,280 --> 00:01:20,440 Speaker 2: and middle income earners. 35 00:01:20,480 --> 00:01:23,360 Speaker 1: There's three billion dollars of hex debt relief coming from 36 00:01:23,480 --> 00:01:25,720 Speaker 1: three million Australians. 37 00:01:24,920 --> 00:01:28,959 Speaker 2: Eleven billion dollars allocated towards building one point two million 38 00:01:29,000 --> 00:01:30,640 Speaker 2: new homes by twenty thirty and. 39 00:01:30,640 --> 00:01:32,480 Speaker 1: The healthcare sector which will be getting eight and a 40 00:01:32,520 --> 00:01:34,880 Speaker 1: half billion dollars over the next four years. 41 00:01:34,959 --> 00:01:37,720 Speaker 2: But Jazz, despite this spending, the government's budget is in 42 00:01:37,800 --> 00:01:40,520 Speaker 2: surplus of nine point three billion dollars. 43 00:01:40,640 --> 00:01:42,440 Speaker 1: RICHI what is the key learning here? 44 00:01:42,560 --> 00:01:45,400 Speaker 2: A budget surplus may be good news, but it doesn't 45 00:01:45,440 --> 00:01:47,280 Speaker 2: paint a full financial picture. 46 00:01:47,400 --> 00:01:49,600 Speaker 1: You see, when a government delivers its budgets, one of 47 00:01:49,600 --> 00:01:51,840 Speaker 1: the biggest things it needs to consider is how the 48 00:01:51,880 --> 00:01:53,640 Speaker 1: budget will impact government debt. 49 00:01:53,840 --> 00:01:56,960 Speaker 2: At the moment, Jazz Australia has close to one trillion 50 00:01:57,000 --> 00:01:59,320 Speaker 2: dollars in government debt, a lot of which was racked 51 00:01:59,400 --> 00:02:00,320 Speaker 2: up during the pandemic. 52 00:02:00,520 --> 00:02:03,880 Speaker 1: That debt could buy about twenty thousand. Now. 53 00:02:03,920 --> 00:02:07,240 Speaker 2: While that sounds like a gigantic number, Australia's debt levels 54 00:02:07,280 --> 00:02:09,480 Speaker 2: are pretty stable compared to other countries. 55 00:02:09,639 --> 00:02:12,359 Speaker 1: In fact, Australia's debt levels are sitting below fifty percent 56 00:02:12,440 --> 00:02:13,200 Speaker 1: of out GDP. 57 00:02:13,400 --> 00:02:15,919 Speaker 2: Compare that to the US, which is almost thirty four 58 00:02:16,040 --> 00:02:18,919 Speaker 2: trillion US dollars in debt, which is around one hundred 59 00:02:18,960 --> 00:02:20,480 Speaker 2: and twenty one percent of their GDP. 60 00:02:20,680 --> 00:02:23,079 Speaker 1: All about Japan, which has a whopping two hundred and 61 00:02:23,120 --> 00:02:25,720 Speaker 1: fifty five percent of their GDP in national debt. 62 00:02:25,880 --> 00:02:29,080 Speaker 2: But even though Australia's debt levels are stable, they're not cheap. 63 00:02:29,320 --> 00:02:32,400 Speaker 1: This the government currently spends sixty million bucks a day 64 00:02:32,840 --> 00:02:34,519 Speaker 1: on the interest repayments on its debt. 65 00:02:34,639 --> 00:02:37,520 Speaker 2: In fact, interest repayments are among the top five things 66 00:02:37,520 --> 00:02:38,600 Speaker 2: the government spends. 67 00:02:38,320 --> 00:02:40,760 Speaker 1: On, and that's money they can't go to other initiatives 68 00:02:40,800 --> 00:02:42,600 Speaker 1: like healthcare or infrastructure. 69 00:02:42,760 --> 00:02:45,160 Speaker 2: And while the budget isn't so plus this year, it's 70 00:02:45,200 --> 00:02:48,120 Speaker 2: expected to be in deficit next year and beyond. 71 00:02:47,840 --> 00:02:51,280 Speaker 1: Which likely means even more debt and more interest repayments 72 00:02:51,280 --> 00:02:51,840 Speaker 1: in the future. 73 00:02:52,000 --> 00:02:55,080 Speaker 2: For our second story, open AI has released the most 74 00:02:55,080 --> 00:02:58,440 Speaker 2: advanced version yet of its chatbot, chat GPT that can 75 00:02:58,480 --> 00:03:01,120 Speaker 2: see here and talk look like a real person. 76 00:03:01,320 --> 00:03:03,840 Speaker 1: Starting to feel like we're properly in the movie Heir HD. 77 00:03:03,960 --> 00:03:06,600 Speaker 1: It's kind of creepy, so tell me more so, Jazz. 78 00:03:06,360 --> 00:03:10,200 Speaker 2: We know. Open Ai first launched chatjubt publicly in November 79 00:03:10,200 --> 00:03:11,000 Speaker 2: twenty twenty three. 80 00:03:11,120 --> 00:03:13,000 Speaker 1: It's fair to say the world has not been the 81 00:03:13,040 --> 00:03:13,959 Speaker 1: same ever since. 82 00:03:14,120 --> 00:03:16,000 Speaker 2: You want to make a recipe with only the remaining 83 00:03:16,120 --> 00:03:17,720 Speaker 2: ingredients in your fridge, asks chatty g. 84 00:03:18,040 --> 00:03:19,800 Speaker 1: You want to give feedback to your friend without making 85 00:03:19,800 --> 00:03:22,000 Speaker 1: it sound too harsh yep, CHATJBT. 86 00:03:22,360 --> 00:03:25,720 Speaker 2: Since then, it released chatjubt four, and now it's launched 87 00:03:25,720 --> 00:03:28,320 Speaker 2: the latest iteration called chatjebt four. 88 00:03:28,360 --> 00:03:31,480 Speaker 1: Oh, the O stands for omni. In other words, chat 89 00:03:31,520 --> 00:03:34,800 Speaker 1: jiput can now hold conversations across different formats of texts, 90 00:03:34,840 --> 00:03:37,560 Speaker 1: of audio, and video in the same conversation, and it 91 00:03:37,600 --> 00:03:39,880 Speaker 1: will literally respond in milliseconds. 92 00:03:40,000 --> 00:03:42,240 Speaker 2: Wow, that makes Siri look like she's stuck in the 93 00:03:42,280 --> 00:03:42,880 Speaker 2: stone age. 94 00:03:43,040 --> 00:03:45,280 Speaker 1: Interesting to say that, HG. Because Apple is actually in 95 00:03:45,320 --> 00:03:48,160 Speaker 1: talks with open Ai about rolling out chat jipt as 96 00:03:48,160 --> 00:03:50,400 Speaker 1: a replacement for the untrusty old SII. 97 00:03:50,680 --> 00:03:53,760 Speaker 2: So I'm wondering, Jazz, what is the key learning move 98 00:03:53,800 --> 00:03:54,480 Speaker 2: Ever hardware. 99 00:03:54,640 --> 00:03:57,360 Speaker 1: The phones of the future will appeal to customers based 100 00:03:57,440 --> 00:03:58,360 Speaker 1: on their software. 101 00:03:58,560 --> 00:04:01,839 Speaker 2: We know that each year, Apple, Samsung, Google roll out 102 00:04:01,880 --> 00:04:02,720 Speaker 2: new phones. 103 00:04:02,440 --> 00:04:04,920 Speaker 1: And each year they are for slightly better cameras or 104 00:04:05,000 --> 00:04:06,559 Speaker 1: slightly more powerful computer. 105 00:04:06,320 --> 00:04:08,480 Speaker 2: Chips, and maybe they're a bit thinner if you're. 106 00:04:08,360 --> 00:04:11,760 Speaker 1: Lucky, but HG. These mini upgrades have left many consumers 107 00:04:11,800 --> 00:04:14,120 Speaker 1: with little incentive to actually upgrade. 108 00:04:14,240 --> 00:04:17,400 Speaker 2: In fact, smartphone sales contracted for twenty seven months in 109 00:04:17,440 --> 00:04:19,560 Speaker 2: a row until late twenty twenty three. 110 00:04:19,480 --> 00:04:21,960 Speaker 1: And now the most exciting upgrades aren't happening in the 111 00:04:21,960 --> 00:04:24,520 Speaker 1: physical space, They're happening with the software. 112 00:04:24,640 --> 00:04:28,240 Speaker 2: Now, Samsung has already bought Google's Gemini into its newest devices. 113 00:04:28,279 --> 00:04:31,200 Speaker 1: Google's obviously also got Gemini in its new smartphones as well, 114 00:04:31,279 --> 00:04:34,320 Speaker 1: which leaves Apple who first launched Serea in twenty eleven 115 00:04:34,400 --> 00:04:35,960 Speaker 1: and hasn't changed much since. 116 00:04:36,080 --> 00:04:38,320 Speaker 2: So it's only a matter of time before Siri gets 117 00:04:38,400 --> 00:04:40,359 Speaker 2: rebranded or fully replaced. 118 00:04:40,640 --> 00:04:44,000 Speaker 1: For our third and final story, Crocs has stomped on 119 00:04:44,040 --> 00:04:48,320 Speaker 1: their quarterly growth expectations after selling thirty two million ugly 120 00:04:48,400 --> 00:04:49,760 Speaker 1: shoes in just three months. 121 00:04:49,839 --> 00:04:52,520 Speaker 2: You'd think the ugly shoe craze would die down, but 122 00:04:52,640 --> 00:04:54,560 Speaker 2: not for the big sea tell me more. 123 00:04:54,640 --> 00:04:56,960 Speaker 1: Okay, So CrOx is the footwear equivalent of a mullet, 124 00:04:57,000 --> 00:05:00,240 Speaker 1: not particularly attractive, but extremely populars that's. 125 00:05:00,160 --> 00:05:02,880 Speaker 2: The comfort element which has seen it regrow its cult following, 126 00:05:03,080 --> 00:05:04,480 Speaker 2: especially since the pandemic. 127 00:05:04,520 --> 00:05:06,920 Speaker 1: Yeah, CrOx was down and out until it started investing 128 00:05:06,920 --> 00:05:09,040 Speaker 1: in collabse, which turned its fate around. 129 00:05:09,200 --> 00:05:12,679 Speaker 2: And now Jazz. CROs has beat its quarterly growth expectations 130 00:05:12,720 --> 00:05:15,560 Speaker 2: with its sales jumping fifteen percent. But Jazz, there is 131 00:05:15,640 --> 00:05:17,960 Speaker 2: one part of the business that is dragging its feet. 132 00:05:18,120 --> 00:05:19,360 Speaker 1: Big timet me through it. 133 00:05:19,480 --> 00:05:22,680 Speaker 2: Crocs acquired another brand called Hey Dude for two point 134 00:05:22,720 --> 00:05:24,960 Speaker 2: five billion USD in twenty twenty two, and. 135 00:05:24,960 --> 00:05:26,120 Speaker 1: I'm going to put it out there as she I 136 00:05:26,200 --> 00:05:28,520 Speaker 1: reckon they're uglier than Crocs themselves. 137 00:05:28,200 --> 00:05:30,520 Speaker 2: And it seems like people agree with you, because Hey 138 00:05:30,600 --> 00:05:33,599 Speaker 2: Dude's sales fell seventeen percent last quarter and. 139 00:05:33,640 --> 00:05:36,599 Speaker 1: CROs is expecting Hey Dude's revenue to decline a further 140 00:05:36,720 --> 00:05:37,680 Speaker 1: ten percent this year. 141 00:05:37,839 --> 00:05:40,760 Speaker 2: So it seems like not all ugly comfy shoes can 142 00:05:40,800 --> 00:05:42,640 Speaker 2: perform the same way as Crocs. 143 00:05:42,279 --> 00:05:45,880 Speaker 1: And this diversification strategy hasn't quite worked out to plan. 144 00:05:45,839 --> 00:05:47,880 Speaker 2: So tell me Jazz, what's the key learning. 145 00:05:48,040 --> 00:05:51,359 Speaker 1: Diversification is a common strategy for companies looking to expand 146 00:05:51,400 --> 00:05:55,119 Speaker 1: their market presence and reduce dependency on a single product line. 147 00:05:55,160 --> 00:05:57,880 Speaker 2: CROs knows all too well what can happen when your 148 00:05:57,920 --> 00:06:00,000 Speaker 2: on trend brand isn't popular anymore. 149 00:06:00,120 --> 00:06:02,920 Speaker 1: They suffered the fate in twenty sixteen before rising from 150 00:06:03,000 --> 00:06:04,000 Speaker 1: the ashes. 151 00:06:03,800 --> 00:06:06,760 Speaker 2: Which is part of the reason why Crocs acquired Hey Dude. 152 00:06:06,800 --> 00:06:09,360 Speaker 1: It was a move to diversify their brand portfolio. 153 00:06:09,560 --> 00:06:11,640 Speaker 2: But diversification comes with risk. 154 00:06:11,760 --> 00:06:14,760 Speaker 1: Yeah. Well, functional footwear like Hey Dude was booming during 155 00:06:14,760 --> 00:06:17,400 Speaker 1: the pandemic. Not all of these brands have continued to 156 00:06:17,440 --> 00:06:18,159 Speaker 1: see success. 157 00:06:18,240 --> 00:06:20,760 Speaker 2: Yep. Think about All Birds, another comfy shoe that was 158 00:06:20,920 --> 00:06:23,599 Speaker 2: less ugly, which has seen its market cap drop from 159 00:06:23,600 --> 00:06:26,520 Speaker 2: four billion USD to just one hundred million USD. 160 00:06:26,720 --> 00:06:28,880 Speaker 1: So now it's g Crocs will have to work extra 161 00:06:28,920 --> 00:06:31,960 Speaker 1: hard to bring Haydude back to its former glory. Flux s'am, 162 00:06:32,040 --> 00:06:33,640 Speaker 1: if you want to know about the federal budget that 163 00:06:33,720 --> 00:06:36,280 Speaker 1: you can't be bothered reading all about it through the newspapers. 164 00:06:36,320 --> 00:06:38,880 Speaker 1: We have you covered in the Flux app. HD's delivered 165 00:06:38,920 --> 00:06:41,680 Speaker 1: a whole range of under sixty second videos on everything 166 00:06:41,720 --> 00:06:43,720 Speaker 1: in the budget and how it might impact you. Make 167 00:06:43,720 --> 00:06:45,960 Speaker 1: sure to download the Flux app and check it all out. 168 00:06:46,000 --> 00:06:47,919 Speaker 2: Thanks for listening, and we'll see you on Friday.