1 00:00:05,240 --> 00:00:06,720 Speaker 1: This is what the Flux. 2 00:00:06,800 --> 00:00:09,680 Speaker 2: I'm Brander Justin and at Monday, the twenty second of July, 3 00:00:09,840 --> 00:00:10,360 Speaker 2: Dozzy boy. 4 00:00:10,520 --> 00:00:13,119 Speaker 1: New jobs data was released late last week and the 5 00:00:13,280 --> 00:00:17,040 Speaker 1: jobs market is still relatively tight. It scurried its way 6 00:00:17,079 --> 00:00:20,160 Speaker 1: from four percent unemployment to just four point one percent, 7 00:00:20,560 --> 00:00:23,599 Speaker 1: and that means a slightly higher likelihood that next month's 8 00:00:23,600 --> 00:00:27,480 Speaker 1: Reserve Bank meeting could mean another cash rate rise. Bookieh 9 00:00:27,480 --> 00:00:28,640 Speaker 1: Spookie stuff, Fluxlam. 10 00:00:28,720 --> 00:00:30,680 Speaker 2: It's the time of the year where everybody is worried 11 00:00:30,680 --> 00:00:32,840 Speaker 2: about their tax return? How do I do it? When 12 00:00:32,880 --> 00:00:34,800 Speaker 2: do I submit it? How much money am I gonting 13 00:00:34,800 --> 00:00:37,280 Speaker 2: at back? That's why we built the Flux tax took 14 00:00:37,320 --> 00:00:39,360 Speaker 2: it within the Academy this month. Make sure you head 15 00:00:39,400 --> 00:00:41,520 Speaker 2: to the Flux app and check out the academy. 16 00:00:41,159 --> 00:00:44,760 Speaker 1: Three balance worthy stories today, Dozzy boy, let's do it 17 00:00:44,840 --> 00:00:48,000 Speaker 1: for our first four. Eskew Metals Group, one of Australia's 18 00:00:48,120 --> 00:00:51,440 Speaker 1: largest companies, has cut seven hundred jobs across its global 19 00:00:51,479 --> 00:00:55,760 Speaker 1: workforce after its green ambitions haven't quite met investor expectation. 20 00:00:55,920 --> 00:00:58,280 Speaker 2: Sounds like all that green hydrogen talk might not have 21 00:00:58,320 --> 00:01:00,240 Speaker 2: been all it was chalked up to be. So what 22 00:01:00,360 --> 00:01:01,000 Speaker 2: is the story here? 23 00:01:01,160 --> 00:01:04,080 Speaker 1: Well, juzzy Boy. Fortescue is the mining giant that was 24 00:01:04,120 --> 00:01:07,600 Speaker 1: founded by Andrew Twiggy twig Man Forest back in two 25 00:01:07,600 --> 00:01:08,200 Speaker 1: thousand and three. 26 00:01:08,240 --> 00:01:11,560 Speaker 2: It's since become the fourth largest iron ore producer globally, 27 00:01:11,600 --> 00:01:14,160 Speaker 2: with a marker cap of a wappen sixty seven billion dollars. 28 00:01:14,200 --> 00:01:16,760 Speaker 1: But dose the boy. Interestingly, Fordescue is also at the 29 00:01:16,760 --> 00:01:19,640 Speaker 1: forefront of developing green hydrogen technology. 30 00:01:19,720 --> 00:01:22,040 Speaker 2: Yep, it's set some pretty lotty goals to achieve it 31 00:01:22,160 --> 00:01:24,840 Speaker 2: net zero by twenty thirty. But now Fortescue has just 32 00:01:24,920 --> 00:01:28,360 Speaker 2: announced that it'll be acting seven hundred jobs globally and 33 00:01:28,680 --> 00:01:31,240 Speaker 2: restructuring its business. And not just that being man, it's 34 00:01:31,280 --> 00:01:34,840 Speaker 2: also scaling back it's green hydrogen initiatives because of high 35 00:01:35,000 --> 00:01:35,800 Speaker 2: energy prices. 36 00:01:36,000 --> 00:01:39,240 Speaker 1: You mean, the same green hydrogen initiatives that it's been 37 00:01:39,400 --> 00:01:41,080 Speaker 1: raving about since twenty twenty. 38 00:01:41,240 --> 00:01:43,840 Speaker 2: Yep, the very same, which is why Fortescue is highlighted 39 00:01:43,880 --> 00:01:45,640 Speaker 2: a number of times that it has no plans to 40 00:01:45,680 --> 00:01:48,440 Speaker 2: actually abandon these green hydrogen initiatives. 41 00:01:48,480 --> 00:01:50,400 Speaker 1: But there's still a lot of questions in the air 42 00:01:50,480 --> 00:01:53,840 Speaker 1: about whether Fordescue's investment in this new technology will actually 43 00:01:54,120 --> 00:01:55,320 Speaker 1: reap any results. 44 00:01:55,400 --> 00:01:56,800 Speaker 2: So what is the key learning here. 45 00:01:56,840 --> 00:01:59,520 Speaker 1: When a company chooses to innovate with new technology, it 46 00:01:59,600 --> 00:02:03,640 Speaker 1: needs to balance current shareholder value with long term growth potential. 47 00:02:03,680 --> 00:02:05,800 Speaker 2: We know that a company is obligated to a shareholder 48 00:02:05,880 --> 00:02:08,359 Speaker 2: aka the people who put money into the business. 49 00:02:08,560 --> 00:02:10,600 Speaker 1: So if a company wants to mix things up and 50 00:02:10,639 --> 00:02:13,080 Speaker 1: do something a little bit different, it needs to sell 51 00:02:13,160 --> 00:02:15,679 Speaker 1: the vision to shareholders successfully and be man. 52 00:02:15,760 --> 00:02:20,000 Speaker 2: That's not always easy because investing innovation is inherently experimental 53 00:02:20,040 --> 00:02:20,880 Speaker 2: and very risky. 54 00:02:21,000 --> 00:02:22,960 Speaker 1: There is just no promise that it's going to pay off. 55 00:02:23,000 --> 00:02:25,399 Speaker 2: Yeah, there's large upfront costs, there's a tension pulled away 56 00:02:25,400 --> 00:02:26,760 Speaker 2: from the core business as well. 57 00:02:26,840 --> 00:02:30,160 Speaker 1: In fordes Us case, it's green hydrogen initiative has accumulated 58 00:02:30,200 --> 00:02:32,799 Speaker 1: over two billion dollars in losses. That's so far, and. 59 00:02:32,760 --> 00:02:36,160 Speaker 2: While cutting edge technology that tackles climate change sounds exciting, 60 00:02:36,200 --> 00:02:38,600 Speaker 2: shareholders are only willing to wait so long to see 61 00:02:38,639 --> 00:02:41,680 Speaker 2: results from new initiatives. For our second story, Microsoft has 62 00:02:41,680 --> 00:02:44,760 Speaker 2: announced a new AI powered designer app late last week 63 00:02:44,840 --> 00:02:47,400 Speaker 2: to help newbies with their basic design skill. 64 00:02:47,760 --> 00:02:50,640 Speaker 1: This sounds real, can for dup. If you ask me, 65 00:02:50,800 --> 00:02:52,320 Speaker 1: juzzy boy, tell me everything you know. 66 00:02:52,440 --> 00:02:55,480 Speaker 2: Okay, So Microsoft is obviously the behemoth tech company started 67 00:02:55,480 --> 00:02:57,320 Speaker 2: back in nineteen seventy five and has grown to a 68 00:02:57,360 --> 00:02:59,880 Speaker 2: three point three trillion US dollar valuation. 69 00:03:00,200 --> 00:03:03,080 Speaker 1: We'd be talking about the second largest company in the 70 00:03:03,120 --> 00:03:05,520 Speaker 1: whole down universe based on market value. 71 00:03:05,800 --> 00:03:08,519 Speaker 2: Man. Although Microsoft has made some updates to its offer 72 00:03:08,560 --> 00:03:11,040 Speaker 2: suite over the years, let's be honest, they haven't been great. 73 00:03:11,080 --> 00:03:13,919 Speaker 1: Yep. PowerPoint praises still feel like they're from nineteen ninety eight. 74 00:03:14,040 --> 00:03:16,800 Speaker 2: So now Microsoft has announced a new AI powered app. 75 00:03:16,800 --> 00:03:20,680 Speaker 2: It's called wait for it, Designer every original name. It 76 00:03:20,720 --> 00:03:24,280 Speaker 2: can give you prompt templates to help kickstart the creative process. 77 00:03:24,520 --> 00:03:26,040 Speaker 2: Let's be honest, no one knows how to design and 78 00:03:26,040 --> 00:03:27,160 Speaker 2: give away post from scratch. 79 00:03:27,639 --> 00:03:30,280 Speaker 1: But boy, if you're thinking that it sounds awfully similar 80 00:03:30,320 --> 00:03:33,600 Speaker 1: to the c dog Ie Canvas, you would be right. 81 00:03:33,760 --> 00:03:36,800 Speaker 1: I was thinking that, actually, except Microsoft has one little 82 00:03:36,880 --> 00:03:39,400 Speaker 1: leg up on Canvas. It has a partnership with open Ai, 83 00:03:39,600 --> 00:03:41,840 Speaker 1: so there's a lot of AI in this tool too, And. 84 00:03:41,880 --> 00:03:44,119 Speaker 2: All of a sudden, Canvas may just have a big, 85 00:03:44,160 --> 00:03:45,960 Speaker 2: bad competitor in the design market. 86 00:03:46,120 --> 00:03:48,400 Speaker 1: Ooh, you went there. So what is the key learning here? 87 00:03:48,400 --> 00:03:51,120 Speaker 2: The hunter has become the hunted. 88 00:03:50,800 --> 00:03:54,080 Speaker 1: Over the past eleven years, Canvas identified a major gap 89 00:03:54,120 --> 00:03:57,120 Speaker 1: in the design market and grew from plucky upstart to 90 00:03:57,240 --> 00:03:59,360 Speaker 1: establish a leader of design software. 91 00:03:59,400 --> 00:04:02,040 Speaker 2: It was hunting down the design software market from Microsoft 92 00:04:02,120 --> 00:04:03,760 Speaker 2: and Adobe's Photoshop. 93 00:04:03,320 --> 00:04:06,200 Speaker 1: But after their rapid growth, they find themselves as the 94 00:04:06,240 --> 00:04:08,680 Speaker 1: company being hunted by Microsoft. 95 00:04:08,240 --> 00:04:10,200 Speaker 2: And be Man. When a tech leader rolls out a 96 00:04:10,240 --> 00:04:13,120 Speaker 2: new product into an existing offering, it has an enormous 97 00:04:13,120 --> 00:04:15,400 Speaker 2: strategic advantage distribution. 98 00:04:15,720 --> 00:04:19,080 Speaker 1: In fact, Microsoft already has more than one point five 99 00:04:19,160 --> 00:04:21,679 Speaker 1: billion Office sweet users around the globe. 100 00:04:21,680 --> 00:04:24,279 Speaker 2: Compare that to Canvas one hundred and seventy million users and. 101 00:04:24,320 --> 00:04:26,680 Speaker 1: Jesi boy this saying the first time we've seen a 102 00:04:26,680 --> 00:04:30,839 Speaker 1: global tech giant with massive distribution dupe another company's product 103 00:04:31,080 --> 00:04:32,520 Speaker 1: and make it into a feature. 104 00:04:32,560 --> 00:04:34,960 Speaker 2: For example, Garman and Tom Tom they were the leaders 105 00:04:34,960 --> 00:04:37,680 Speaker 2: in GPS mapping until Google and Apple made it an 106 00:04:37,680 --> 00:04:38,600 Speaker 2: app in their phones. 107 00:04:38,680 --> 00:04:41,040 Speaker 1: What about Adobe? They were the leader in the PDF 108 00:04:41,040 --> 00:04:44,919 Speaker 1: format until Microsoft created their own PDF viewer in the Office. 109 00:04:44,600 --> 00:04:47,039 Speaker 2: Suite, so be Man. Only time will tell if Canva 110 00:04:47,120 --> 00:04:49,360 Speaker 2: can maintain its design market dominance. 111 00:04:49,520 --> 00:04:52,760 Speaker 1: For our third and final story, the maker of ray 112 00:04:52,839 --> 00:04:57,479 Speaker 1: Ban Sonny's esselaw Laxotica, has acquired the Supreme Fashion brand 113 00:04:57,560 --> 00:05:00,440 Speaker 1: for one point five billion US dollarydo the. 114 00:05:00,360 --> 00:05:03,040 Speaker 2: Old Sunny's and streetwear colob I can kind of see 115 00:05:03,040 --> 00:05:04,839 Speaker 2: it working. Tell me all a bit of boutground here, 116 00:05:04,920 --> 00:05:08,000 Speaker 2: Juzzy boys. So, Eslor Luxotica is the merged company of 117 00:05:08,040 --> 00:05:11,719 Speaker 2: Luxotica from Italy and Essloor from France. Fun fact for you, 118 00:05:11,880 --> 00:05:14,760 Speaker 2: Eslo Lexotica pretty much owns all of the big eyewear 119 00:05:14,760 --> 00:05:16,000 Speaker 2: brands around the world. 120 00:05:16,160 --> 00:05:19,120 Speaker 1: We'd be talking ray Band Oakley, you're a per sol man, 121 00:05:19,240 --> 00:05:20,680 Speaker 1: and don't forget Sunglass Heart. 122 00:05:20,680 --> 00:05:22,240 Speaker 2: I've seen you in there a few times. That's the 123 00:05:22,279 --> 00:05:24,839 Speaker 2: Sunny's retailer and they've got over fifty two percent market 124 00:05:24,880 --> 00:05:26,279 Speaker 2: share in the eyewear industry. 125 00:05:26,320 --> 00:05:28,120 Speaker 1: Now, Juzzy boy, it must have come as a bit 126 00:05:28,160 --> 00:05:29,960 Speaker 1: of a surprise for you when they made a big 127 00:05:30,000 --> 00:05:31,360 Speaker 1: announcement late last week. 128 00:05:31,640 --> 00:05:35,400 Speaker 2: Eslo Luxotica announced it will acquire the streetwear brand Supreme 129 00:05:35,560 --> 00:05:38,720 Speaker 2: from VF Brands for one and a half billion US dollars. 130 00:05:38,880 --> 00:05:41,080 Speaker 2: That would be the on trend sweetwear brand that many 131 00:05:41,120 --> 00:05:44,799 Speaker 2: celebs rock in the papped shots around town. And interestingly, 132 00:05:44,920 --> 00:05:48,239 Speaker 2: this is Esla Luxotika's first acquisition of an apparel company. 133 00:05:48,279 --> 00:05:50,320 Speaker 1: Yeah, it would seem that they want to acquire Supremes 134 00:05:50,360 --> 00:05:54,120 Speaker 1: platform and connect to Supreme's audience, which is primarily gen Z. 135 00:05:54,320 --> 00:05:57,200 Speaker 2: And while the share price of Supreme's owner jumped eight percent, 136 00:05:57,279 --> 00:05:59,640 Speaker 2: the shares in Eslo Luxotica dropped. 137 00:05:59,400 --> 00:06:02,560 Speaker 1: Nearly four mainly because many investors are unsure about the 138 00:06:02,560 --> 00:06:06,120 Speaker 1: strategic fit of a streetwear brand in a luxury eyewear company. 139 00:06:06,200 --> 00:06:07,560 Speaker 2: So what is the key learning here? 140 00:06:07,600 --> 00:06:10,640 Speaker 1: A strategic fit is when an acquiring company can benefit 141 00:06:10,640 --> 00:06:12,799 Speaker 1: from synergies with the acquired company. 142 00:06:12,839 --> 00:06:15,960 Speaker 2: So Eslo Lexotica is trying to leverage Supreme brand equity 143 00:06:16,000 --> 00:06:18,080 Speaker 2: to not only grow the brand further, but also make 144 00:06:18,120 --> 00:06:19,960 Speaker 2: their eyewear cool again. 145 00:06:20,160 --> 00:06:23,159 Speaker 1: And while all of this makes sense in theory, doesn't 146 00:06:23,200 --> 00:06:24,560 Speaker 1: always work out in brattice. 147 00:06:24,560 --> 00:06:26,720 Speaker 2: Remember when will Worth acquired dick Smith for four hundred 148 00:06:26,760 --> 00:06:28,360 Speaker 2: and thirty million bucks. 149 00:06:28,080 --> 00:06:30,039 Speaker 1: And it ended up selling dick Smith to a private 150 00:06:30,080 --> 00:06:31,880 Speaker 1: equity firm for just twenty million bucks. 151 00:06:31,920 --> 00:06:35,200 Speaker 2: So esltt Lexotica will be hoping it can successfully leverage 152 00:06:35,200 --> 00:06:38,000 Speaker 2: its retail experience in starting to sell Fyfe Culture clothes 153 00:06:38,000 --> 00:06:39,919 Speaker 2: to gen Z flux Am. The sooner you is to 154 00:06:39,920 --> 00:06:42,479 Speaker 2: bit your tax returns, the sooner you can potentially get 155 00:06:42,480 --> 00:06:44,760 Speaker 2: your tax rebite. We've got it all covered in the 156 00:06:44,760 --> 00:06:47,719 Speaker 2: Flux Academy. This month the FI twenty four tax Toolkits. 157 00:06:47,760 --> 00:06:48,600 Speaker 2: Make sure to check it out. 158 00:06:48,640 --> 00:06:51,040 Speaker 1: Thanks for listening, and we'll see you on Wednesday.