1 00:00:05,240 --> 00:00:08,840 Speaker 1: This is what the Flux I'm Brandon Justin and it's Monday, 2 00:00:08,880 --> 00:00:10,559 Speaker 1: the ninth of September, Flux VAM. 3 00:00:10,840 --> 00:00:12,800 Speaker 2: Just when we thought the Reserve Bank of Australia could 4 00:00:12,840 --> 00:00:15,560 Speaker 2: be dropping the cash rat soon, we'll get quite a 5 00:00:15,600 --> 00:00:18,439 Speaker 2: wake up call. Late last week, the RBA Governor Michelle 6 00:00:18,440 --> 00:00:20,960 Speaker 2: Bullet warned it if the economy stays as it is, 7 00:00:21,120 --> 00:00:25,440 Speaker 2: rates won't go down. But if the economy starts firing again, 8 00:00:25,640 --> 00:00:28,520 Speaker 2: well then it may be time for a cash rate rise. 9 00:00:28,960 --> 00:00:31,840 Speaker 3: Give us some good news, Michelle, Just one piece. 10 00:00:31,640 --> 00:00:33,839 Speaker 1: Of good news in the meantime, flux am, before the 11 00:00:33,920 --> 00:00:36,560 Speaker 1: rates go down. There are many ways to save cash, 12 00:00:36,600 --> 00:00:39,760 Speaker 1: including reducing some of your UNNW subscriptions, and we have 13 00:00:39,840 --> 00:00:41,880 Speaker 1: it all covered in the Flux app. You can track 14 00:00:41,920 --> 00:00:44,280 Speaker 1: all your subscriptions in under thirty seconds, which ones are 15 00:00:44,320 --> 00:00:46,319 Speaker 1: costing you big bucks and which ones you're not even 16 00:00:46,440 --> 00:00:48,040 Speaker 1: using to Make sure to download the Flux app to 17 00:00:48,120 --> 00:00:50,320 Speaker 1: check out all your subscriptions in one place. 18 00:00:50,520 --> 00:00:53,360 Speaker 2: Three budget stories today, Jossy boy, let's do it for 19 00:00:53,400 --> 00:00:57,240 Speaker 2: our first Star Entertainment, the major casino operator has put 20 00:00:57,400 --> 00:00:59,760 Speaker 2: chairs in a trading halt as it looks for ways to. 21 00:00:59,720 --> 00:01:03,319 Speaker 1: S Geez Star Entertainment really rolling the dice on this one, 22 00:01:03,320 --> 00:01:04,880 Speaker 1: b Man. So what is going on here. 23 00:01:04,720 --> 00:01:05,520 Speaker 3: Well, chase boys. 24 00:01:05,560 --> 00:01:09,000 Speaker 2: Star Entertainment is one of the largest casino operators in Australia, 25 00:01:09,000 --> 00:01:11,680 Speaker 2: which and casinos in Sydney and the Gold Coast, and 26 00:01:11,800 --> 00:01:14,080 Speaker 2: don't forget bris Vegas where it just opened a brand 27 00:01:14,160 --> 00:01:15,120 Speaker 2: spanking new casino. 28 00:01:15,200 --> 00:01:17,520 Speaker 3: The cost around three point six billion bucks to bill. 29 00:01:17,360 --> 00:01:19,080 Speaker 1: Well ever budget as well, be Man. But that is 30 00:01:19,120 --> 00:01:21,640 Speaker 1: the positive stuff for Star. But things have been anything 31 00:01:21,720 --> 00:01:23,280 Speaker 1: but positive over the past few years. 32 00:01:23,400 --> 00:01:23,600 Speaker 3: Yep. 33 00:01:23,640 --> 00:01:26,920 Speaker 2: Star Entertainment's being accused of let's see here, money laundering. 34 00:01:26,959 --> 00:01:29,399 Speaker 2: Cash has a bit of fraud in here. There's links 35 00:01:29,440 --> 00:01:30,760 Speaker 2: to organized crime gang. 36 00:01:30,680 --> 00:01:32,959 Speaker 1: Not exactly the kind of jackpot that you want to hit. 37 00:01:33,680 --> 00:01:36,199 Speaker 2: On top of that, it's new South Wales casino license 38 00:01:36,360 --> 00:01:40,119 Speaker 2: was temporarily suspended and it was fined one hundred million bucks. 39 00:01:40,120 --> 00:01:42,560 Speaker 1: But now, be Man, after all of this was supposedly 40 00:01:42,600 --> 00:01:45,880 Speaker 1: behind Star Entertainment. They've now gone into a trading halt. 41 00:01:45,760 --> 00:01:48,000 Speaker 2: And that's because Star failed to provide its accounts to 42 00:01:48,040 --> 00:01:49,040 Speaker 2: the ASX on time. 43 00:01:49,080 --> 00:01:51,280 Speaker 1: And after this value be Man, Star came out and 44 00:01:51,320 --> 00:01:55,160 Speaker 1: warned that it's currently reviewing its financial and its liquidity position. 45 00:01:54,920 --> 00:01:57,520 Speaker 2: And by the way, it needs to restructure the company 46 00:01:57,600 --> 00:02:00,400 Speaker 2: as soon as possible and find three hundred million bucks 47 00:02:00,400 --> 00:02:02,120 Speaker 2: in cash to avoid collapse. 48 00:02:02,160 --> 00:02:04,520 Speaker 1: There to say, they are basically down to their very 49 00:02:04,600 --> 00:02:05,360 Speaker 1: last chips. 50 00:02:05,800 --> 00:02:08,400 Speaker 2: They're begging the New South Wales and Queensland governments to 51 00:02:08,480 --> 00:02:11,120 Speaker 2: spot them some cash before they're completely tapped out. 52 00:02:11,120 --> 00:02:12,960 Speaker 1: And it's not just a bad handbe man. They are 53 00:02:13,000 --> 00:02:15,720 Speaker 1: staring at a major liquidity crisis. Bang. 54 00:02:15,800 --> 00:02:16,880 Speaker 3: So what's the key learning here? 55 00:02:16,919 --> 00:02:19,720 Speaker 1: A liquidity crisis happens when a company can't meet its 56 00:02:19,800 --> 00:02:21,519 Speaker 1: short term financial obligations. 57 00:02:21,520 --> 00:02:23,200 Speaker 2: It's kind of like being out of chips at the 58 00:02:23,240 --> 00:02:26,000 Speaker 2: table and unable to buy back in right now. 59 00:02:26,120 --> 00:02:28,240 Speaker 1: Star can't pay its bills because it's short on cash, 60 00:02:28,360 --> 00:02:30,560 Speaker 1: or it doesn't have enough assets that can be quickly 61 00:02:30,600 --> 00:02:31,320 Speaker 1: turned into. 62 00:02:31,160 --> 00:02:31,840 Speaker 3: Cash and does it. 63 00:02:32,120 --> 00:02:35,320 Speaker 2: A liquidity crisis like this often leads to panic as 64 00:02:35,480 --> 00:02:38,560 Speaker 2: lenders and investors they lose confidence in the company's ability 65 00:02:38,639 --> 00:02:39,519 Speaker 2: to just pay its bills. 66 00:02:39,520 --> 00:02:42,280 Speaker 1: In Starr's case, they're facing a three hundred million dollar 67 00:02:42,320 --> 00:02:43,280 Speaker 1: cash crunch. 68 00:02:42,960 --> 00:02:45,880 Speaker 2: And this type of crisis can snowball very quickly. It 69 00:02:45,919 --> 00:02:48,280 Speaker 2: already wants to write down the value of its assets 70 00:02:48,320 --> 00:02:50,279 Speaker 2: by about one point four billion bucks. 71 00:02:49,960 --> 00:02:51,760 Speaker 1: So be man. If they don't get more money or 72 00:02:51,800 --> 00:02:54,160 Speaker 1: convince the government to push back their tax payments, they 73 00:02:54,160 --> 00:02:55,880 Speaker 1: could be in some real trouble. 74 00:02:56,120 --> 00:02:56,400 Speaker 3: Yep. 75 00:02:56,480 --> 00:03:00,480 Speaker 2: For our second story, Ticketmaster's owner Live Nation is under 76 00:03:00,520 --> 00:03:03,880 Speaker 2: investigation after being criticized for inflating the price of concert 77 00:03:03,919 --> 00:03:06,359 Speaker 2: tickets in the UK, and this very same issue could 78 00:03:06,440 --> 00:03:07,800 Speaker 2: soon be coming to Australia. 79 00:03:08,120 --> 00:03:11,240 Speaker 1: Oasis reforming equals Internet broken, Bman, So tell me more 80 00:03:11,240 --> 00:03:12,200 Speaker 1: about this story. 81 00:03:11,919 --> 00:03:13,400 Speaker 3: Store my thunder their juzzy boys. 82 00:03:13,440 --> 00:03:16,360 Speaker 2: So this one starts with UK rock band Oasis, which 83 00:03:16,480 --> 00:03:19,680 Speaker 2: were one of the biggest rock bands of the nineteen. 84 00:03:19,480 --> 00:03:22,160 Speaker 1: Ninety with the two bros, a Liam and Noel Gallagher. 85 00:03:22,280 --> 00:03:24,360 Speaker 2: In two thousand and nine they had a fallout of 86 00:03:24,400 --> 00:03:26,560 Speaker 2: epic proportions that left fans heartbroken. 87 00:03:26,600 --> 00:03:29,600 Speaker 1: Now Beman, fast forward nearly fifteen years and the unthinkable 88 00:03:29,639 --> 00:03:32,200 Speaker 1: has happened. They're getting the band back together for a 89 00:03:32,320 --> 00:03:33,600 Speaker 1: UK and Ireland tour. 90 00:03:33,720 --> 00:03:33,800 Speaker 3: Now. 91 00:03:33,919 --> 00:03:36,040 Speaker 2: Last week the tickets for the concert went on sale 92 00:03:36,040 --> 00:03:36,640 Speaker 2: on Ticketmaster. 93 00:03:36,720 --> 00:03:38,720 Speaker 1: Bands weighed up ten hours for one hundred and thirty 94 00:03:38,720 --> 00:03:40,760 Speaker 1: five pound ticket. 95 00:03:39,880 --> 00:03:42,480 Speaker 2: But when they got to the ticket page, the seats 96 00:03:42,520 --> 00:03:45,840 Speaker 2: were more than three hundred and fifty pounds because tickets 97 00:03:45,840 --> 00:03:48,240 Speaker 2: were in high demand. That's a new pricing model that 98 00:03:48,240 --> 00:03:51,600 Speaker 2: would allow live nations company Ticketmaster to charge more for 99 00:03:51,720 --> 00:03:53,280 Speaker 2: tickets when demands sir, but. 100 00:03:53,240 --> 00:03:55,840 Speaker 1: Low and behold all the tickets still sold and Oasis 101 00:03:55,840 --> 00:03:58,400 Speaker 1: and Ticketmaster made a whole lot of bank. 102 00:03:58,320 --> 00:03:58,960 Speaker 3: The juzzy boy. 103 00:03:59,000 --> 00:04:02,120 Speaker 2: This has brought into q this new dynamic pricing ticketing 104 00:04:02,160 --> 00:04:03,200 Speaker 2: for concerts. 105 00:04:02,840 --> 00:04:04,920 Speaker 1: Been rolled up for concerts in the US, then the UK, 106 00:04:05,040 --> 00:04:06,560 Speaker 1: and it's been announced that it will roll out in 107 00:04:06,600 --> 00:04:07,840 Speaker 1: Australia soon too. 108 00:04:07,800 --> 00:04:10,120 Speaker 2: And regulators in the UK and also around the world 109 00:04:10,160 --> 00:04:13,360 Speaker 2: and now investigating whether dynamic pricing should actually be legal. 110 00:04:13,400 --> 00:04:14,800 Speaker 1: So what is the key learning here? 111 00:04:14,880 --> 00:04:17,440 Speaker 2: Dynamic pricing is the idea that prices of a product 112 00:04:17,520 --> 00:04:20,760 Speaker 2: or service can vary throughout the day or week depending 113 00:04:20,800 --> 00:04:23,359 Speaker 2: on the fluctuating demand and be man. This allows companies 114 00:04:23,400 --> 00:04:27,240 Speaker 2: like Ticketmaster to maximize revenue by charging higher prices during 115 00:04:27,320 --> 00:04:28,920 Speaker 2: peak demand periods. 116 00:04:28,520 --> 00:04:30,599 Speaker 3: And offering lower prices when demand is lower. 117 00:04:30,640 --> 00:04:32,880 Speaker 1: For example, tickets on a Saturday night concert in a 118 00:04:33,000 --> 00:04:35,760 Speaker 1: major city might be priced a lot higher than a 119 00:04:35,760 --> 00:04:37,400 Speaker 1: midweek event in a small town. 120 00:04:37,480 --> 00:04:38,000 Speaker 3: But does a boy. 121 00:04:38,040 --> 00:04:40,640 Speaker 2: Although this is kind of new for entertainment dynamic pricing 122 00:04:40,800 --> 00:04:42,919 Speaker 2: isn't actually a new concept for some other industries. 123 00:04:43,160 --> 00:04:46,200 Speaker 1: Airlines have been doing it for decades. Given Live Nation 124 00:04:46,360 --> 00:04:48,800 Speaker 1: CEO has warned it will also come to Australia. It's 125 00:04:48,800 --> 00:04:50,520 Speaker 1: shined the light on the laws around it. 126 00:04:50,600 --> 00:04:53,280 Speaker 2: Yep, right now in Australia, there's nothing illegal about a 127 00:04:53,320 --> 00:04:54,720 Speaker 2: business doing dynamic prices. 128 00:04:54,520 --> 00:04:57,400 Speaker 1: As long as it doesn't misrepresent what its price is. 129 00:04:57,640 --> 00:04:59,880 Speaker 2: And while not all music artists are getting into the 130 00:05:00,080 --> 00:05:02,719 Speaker 2: dynamic pricing vibes, it is expected that we might start 131 00:05:02,760 --> 00:05:04,279 Speaker 2: to see it more and more. 132 00:05:04,600 --> 00:05:07,599 Speaker 1: For our third and final story, Birbury is set to 133 00:05:07,640 --> 00:05:11,240 Speaker 1: be dropped from London's foot Sea hundred index after fifteen years, 134 00:05:11,360 --> 00:05:14,120 Speaker 1: as its share price plummets to its lowest price since 135 00:05:14,160 --> 00:05:14,800 Speaker 1: twenty ten. 136 00:05:14,920 --> 00:05:16,919 Speaker 2: Those trench coats just aren't hitting like they used to. 137 00:05:17,000 --> 00:05:19,159 Speaker 2: Juzzy boy, what's the story right here, right now. 138 00:05:19,040 --> 00:05:21,960 Speaker 1: Babe man Well. Berbury is the British luxury fashion brand 139 00:05:22,000 --> 00:05:24,480 Speaker 1: that was founded in the eighteen fifties and listed on 140 00:05:24,520 --> 00:05:26,200 Speaker 1: the stock market in two thousand and five. 141 00:05:26,240 --> 00:05:28,839 Speaker 3: But over the last few years Birbury has been battling 142 00:05:29,040 --> 00:05:29,920 Speaker 3: with weak demand. 143 00:05:30,000 --> 00:05:32,520 Speaker 1: Fact its share price has dropped over seventy six percent 144 00:05:32,640 --> 00:05:33,400 Speaker 1: since April. 145 00:05:33,240 --> 00:05:35,880 Speaker 2: Last year, and now Birbery is set to be dropped 146 00:05:35,880 --> 00:05:38,839 Speaker 2: from the foot Sea one hundred ie the Financial Times 147 00:05:38,880 --> 00:05:39,680 Speaker 2: Stock Exchange. 148 00:05:39,720 --> 00:05:42,000 Speaker 1: That's an index of the top one hundred companies listed 149 00:05:42,080 --> 00:05:43,679 Speaker 1: in the UK by market value. 150 00:05:43,720 --> 00:05:45,920 Speaker 2: Now Berbery has been on that list for fifteen years 151 00:05:45,960 --> 00:05:47,760 Speaker 2: in a row until now. 152 00:05:47,800 --> 00:05:48,840 Speaker 1: How did it drop out? Now? 153 00:05:49,040 --> 00:05:51,760 Speaker 2: Very simple, juzzy boy, its market cap dropped too low 154 00:05:51,880 --> 00:05:53,200 Speaker 2: to be kept in the list. 155 00:05:53,279 --> 00:05:55,480 Speaker 1: While this sounds like a little bit of a symbolic drop, 156 00:05:55,520 --> 00:05:57,880 Speaker 1: there are many consequences that go more than. 157 00:05:57,720 --> 00:05:59,720 Speaker 3: Just being symbolic. So what is the key learning here? 158 00:06:00,160 --> 00:06:03,040 Speaker 1: Off the index ladder can often mean tumbling down the market. 159 00:06:03,080 --> 00:06:03,560 Speaker 3: Here's the thing. 160 00:06:03,640 --> 00:06:06,279 Speaker 2: When the company is included on an index like the 161 00:06:06,279 --> 00:06:08,760 Speaker 2: Footsy one hundred or the ASEX two hundred, it gains 162 00:06:08,839 --> 00:06:10,120 Speaker 2: more than just the title. 163 00:06:10,279 --> 00:06:12,040 Speaker 3: For me through this well it does a boy. 164 00:06:12,120 --> 00:06:14,560 Speaker 2: Being on an index usually gives a company access to 165 00:06:14,760 --> 00:06:17,320 Speaker 2: a new form of investors and investment funds. 166 00:06:17,000 --> 00:06:20,640 Speaker 1: The ETFs mutual funds, which often track major indexes and 167 00:06:20,680 --> 00:06:23,400 Speaker 1: hold the stocks in there. And this could push Burbery's 168 00:06:23,440 --> 00:06:26,719 Speaker 1: already damage share price even further down. Be Man, I 169 00:06:26,800 --> 00:06:29,359 Speaker 1: just uncovered that I am paying sixty five dollars a 170 00:06:29,520 --> 00:06:32,360 Speaker 1: month for a gym subscription that I barely even. 171 00:06:32,200 --> 00:06:33,960 Speaker 2: Use and the only not good for a guy running 172 00:06:33,960 --> 00:06:35,320 Speaker 2: a financial education company. 173 00:06:35,440 --> 00:06:38,839 Speaker 1: Luckily, we've built the tool to identify subscriptions, track them, 174 00:06:38,880 --> 00:06:40,840 Speaker 1: and then give you the ability to counsel them as well. 175 00:06:40,880 --> 00:06:42,839 Speaker 1: It is all in the Bluck Subscription track up to 176 00:06:42,839 --> 00:06:44,599 Speaker 1: make sure you download the plucks out and check it 177 00:06:44,640 --> 00:06:45,000 Speaker 1: all out. 178 00:06:45,040 --> 00:06:49,960 Speaker 2: Thanks for listening and we'll see you on Wednesday.