1 00:00:05,160 --> 00:00:07,880 Speaker 1: This is what the Flux I'm brand, I'm justin and 2 00:00:07,880 --> 00:00:09,560 Speaker 1: it's Wednesday, the twenty seventh of August. 3 00:00:09,600 --> 00:00:13,200 Speaker 2: Juzzy Boy Australia Post has suspended its postal delivery service 4 00:00:13,240 --> 00:00:16,000 Speaker 2: to the US. They say it was forced to take 5 00:00:16,079 --> 00:00:18,520 Speaker 2: the action because of significant changes made by the US 6 00:00:18,600 --> 00:00:21,560 Speaker 2: government to import tariff rules seeing and there ain't no 7 00:00:21,680 --> 00:00:23,680 Speaker 2: timeline on when the suspension will be lifted. 8 00:00:23,760 --> 00:00:25,560 Speaker 1: Could have heard a lot of small businesses in Australia 9 00:00:25,560 --> 00:00:28,440 Speaker 1: be man Indeed, fox out. The average salary in Australia 10 00:00:28,520 --> 00:00:31,360 Speaker 1: is over two thousand dollars per week. Now that's according 11 00:00:31,400 --> 00:00:33,640 Speaker 1: to the ABS. Today in the Flux app, we break 12 00:00:33,640 --> 00:00:36,519 Speaker 1: it down by state, including which state is averaging the 13 00:00:36,600 --> 00:00:38,960 Speaker 1: biggest salary, as well as which industry. So if you 14 00:00:38,960 --> 00:00:41,000 Speaker 1: want to learn all about it who's taking home the bag? 15 00:00:41,200 --> 00:00:43,480 Speaker 1: Make sure downt leave the Flux app and check it out. 16 00:00:43,520 --> 00:00:46,400 Speaker 2: Three surprising stories today Juzzy Boy, Let's do it for 17 00:00:46,600 --> 00:00:49,479 Speaker 2: our first. Coles has seen it shares jump eight percent 18 00:00:49,680 --> 00:00:52,160 Speaker 2: after a big push in its home brand products. 19 00:00:52,320 --> 00:00:55,120 Speaker 1: The little red quote going hard and performing well, So 20 00:00:55,280 --> 00:00:55,920 Speaker 1: tell me more so. 21 00:00:56,040 --> 00:00:58,240 Speaker 2: Cole's Group is the company that owns a major Rossie 22 00:00:58,280 --> 00:01:00,000 Speaker 2: supermarket giant Cole as well as at. 23 00:01:00,080 --> 00:01:03,040 Speaker 1: Thousand liquor stores across the country under the liquor Land 24 00:01:03,080 --> 00:01:04,080 Speaker 1: brand the Joseiboit. 25 00:01:04,120 --> 00:01:06,040 Speaker 2: We know that over the past twelve months, Coles has 26 00:01:06,080 --> 00:01:09,120 Speaker 2: made a big push to chase market leader all lease. 27 00:01:09,280 --> 00:01:12,560 Speaker 1: Yep, Coles is double down on its downdown campaigns as 28 00:01:12,560 --> 00:01:14,240 Speaker 1: well as its private label brand. 29 00:01:14,319 --> 00:01:16,440 Speaker 2: And it was good news for the big red. Coles 30 00:01:16,560 --> 00:01:19,520 Speaker 2: group's sales lifted one point seven percent to forty four 31 00:01:19,560 --> 00:01:21,720 Speaker 2: point five a billion, but be man. 32 00:01:21,560 --> 00:01:24,000 Speaker 1: It's group net profit actually dipped by three and a 33 00:01:24,000 --> 00:01:24,479 Speaker 1: half percent. 34 00:01:24,560 --> 00:01:26,640 Speaker 2: Okay, what were the main offenders? 35 00:01:26,680 --> 00:01:28,720 Speaker 1: Well, the earnings from liquor Land fell. 36 00:01:28,640 --> 00:01:31,119 Speaker 2: And tobacco sales fell thirty percent because of the black 37 00:01:31,160 --> 00:01:32,080 Speaker 2: market tobacco trade. 38 00:01:32,120 --> 00:01:33,400 Speaker 1: Interesting the sin categories. 39 00:01:33,400 --> 00:01:35,520 Speaker 2: But Josie Boit hold up right there because on a 40 00:01:35,520 --> 00:01:38,560 Speaker 2: normalized basis, Coals group sales were actually up three point 41 00:01:38,600 --> 00:01:39,200 Speaker 2: six percent and. 42 00:01:39,200 --> 00:01:40,760 Speaker 1: It's profits up two point four percent. 43 00:01:40,880 --> 00:01:42,200 Speaker 2: So what is the key learning here? 44 00:01:42,280 --> 00:01:46,200 Speaker 1: Not all financial years are created equal, especially in supermarkets 45 00:01:46,240 --> 00:01:49,040 Speaker 1: where some years stretched to fifty three weeks. Yep. 46 00:01:49,120 --> 00:01:52,640 Speaker 2: That is why Coles also reported their normalized financial results 47 00:01:52,680 --> 00:01:56,320 Speaker 2: to investors, and normalized results are well normalized figures strip 48 00:01:56,360 --> 00:01:59,480 Speaker 2: out unusual factors like an extra trading week, to give 49 00:01:59,520 --> 00:02:01,960 Speaker 2: a clear view of a company's performance. And this matters 50 00:02:01,960 --> 00:02:04,840 Speaker 2: for retailers like coals more than an industry like financial 51 00:02:04,880 --> 00:02:07,720 Speaker 2: services or banking. And why is that Because retailers like 52 00:02:07,720 --> 00:02:11,360 Speaker 2: supermarkets report results in weekly periods, so an extra week 53 00:02:11,480 --> 00:02:14,720 Speaker 2: means an extra seven days of supermarket sales. It's basically 54 00:02:14,720 --> 00:02:17,480 Speaker 2: like Coles playing an extra round of footy in the season. Yep, 55 00:02:17,480 --> 00:02:19,760 Speaker 2: the last time Coles reported on a fifty three week 56 00:02:19,840 --> 00:02:22,679 Speaker 2: basis was actually Fox twenty four, but before. 57 00:02:22,400 --> 00:02:24,959 Speaker 1: That it was f y nineteen, so it doesn't happen 58 00:02:25,000 --> 00:02:25,560 Speaker 1: too often. 59 00:02:25,600 --> 00:02:28,959 Speaker 2: That is why analysts look at normalized numbers, which strip 60 00:02:29,000 --> 00:02:31,160 Speaker 2: out that extra week to show true performance. 61 00:02:31,200 --> 00:02:33,640 Speaker 1: The coals, those numbers were strong enough to impress the 62 00:02:33,720 --> 00:02:34,959 Speaker 1: checkout and the stock. 63 00:02:34,760 --> 00:02:37,600 Speaker 2: Market, and clearly it impressed investors enough because coal shares 64 00:02:37,720 --> 00:02:38,799 Speaker 2: jumped eight percent. 65 00:02:38,600 --> 00:02:40,399 Speaker 1: For only all years had fifty three weeks. 66 00:02:40,440 --> 00:02:44,600 Speaker 2: For our second story, the country's largest supplier of plumbing 67 00:02:44,639 --> 00:02:48,079 Speaker 2: and bathroom supplies, Reese, has seen shares flushed twenty one 68 00:02:48,120 --> 00:02:49,840 Speaker 2: percent after its profits plunged. 69 00:02:49,880 --> 00:02:52,160 Speaker 1: Talk about a leaky share price, Beman, and tell me. 70 00:02:52,080 --> 00:02:55,840 Speaker 2: More well, Reese was founded in nineteen nineteen by none 71 00:02:55,919 --> 00:02:58,440 Speaker 2: other than Harold Joseph Reese, and it's. 72 00:02:58,320 --> 00:03:02,280 Speaker 1: Grown to become Australia's largest of plumbing and bathroom supplies. 73 00:03:02,400 --> 00:03:04,040 Speaker 2: Do you want a bath ree You want a hot 74 00:03:04,080 --> 00:03:07,480 Speaker 2: water system? That'd be Reese and non return isolating valve 75 00:03:07,560 --> 00:03:09,800 Speaker 2: you didn't know existed until your plumber charged you four 76 00:03:09,880 --> 00:03:10,720 Speaker 2: hundred dollars for it. 77 00:03:11,040 --> 00:03:13,600 Speaker 1: That is Reese, Yep and the Man. While Reese listed 78 00:03:13,600 --> 00:03:16,800 Speaker 1: on the ASEX in twenty fourteen, the controlling family, the Wilsons, 79 00:03:16,880 --> 00:03:19,320 Speaker 1: still owns sixty seven percent of the business. 80 00:03:19,040 --> 00:03:22,040 Speaker 2: And now Reese CEO Peter Wilson has warned that Reese's 81 00:03:22,080 --> 00:03:24,880 Speaker 2: earnings before interest in tax NEBIT fell twenty percent in 82 00:03:24,919 --> 00:03:27,920 Speaker 2: the last financial year to five hundred and twenty eight mil. 83 00:03:27,840 --> 00:03:30,280 Speaker 1: And the Man. That is way below the five hundred 84 00:03:30,280 --> 00:03:32,119 Speaker 1: and eighty mil that analysts were expecting. 85 00:03:32,160 --> 00:03:35,120 Speaker 2: And while overall sales did slide one percent to just 86 00:03:35,200 --> 00:03:38,320 Speaker 2: under nine billion dollars, it's US business copped the biggest hit. 87 00:03:38,640 --> 00:03:40,760 Speaker 1: In the US, which makes up more than half the business, 88 00:03:40,840 --> 00:03:42,920 Speaker 1: its sales actually dropped five percent. 89 00:03:42,680 --> 00:03:44,960 Speaker 2: And Reese also warned that the US housing market is 90 00:03:45,000 --> 00:03:47,839 Speaker 2: expected to stay turbulent for the financial year. 91 00:03:47,920 --> 00:03:50,760 Speaker 1: Next minute, Reese's share price tumbled up to twenty one 92 00:03:50,800 --> 00:03:53,040 Speaker 1: percent and Judsey Boy, it's quite interesting to see a 93 00:03:53,080 --> 00:03:57,040 Speaker 1: CEO so downbeat on an investor call, but also acknowledging 94 00:03:57,080 --> 00:03:59,720 Speaker 1: the reality so true. So what is the key learning here? 95 00:04:00,120 --> 00:04:02,400 Speaker 2: All CEOs deliver bad news the same way. 96 00:04:02,200 --> 00:04:04,520 Speaker 1: You see, be Man. The controlling family still own a 97 00:04:04,560 --> 00:04:07,360 Speaker 1: significant majority of the publicly listed company. 98 00:04:07,120 --> 00:04:09,680 Speaker 2: So the CEO Peter Wilson can afford to speak with more. 99 00:04:09,600 --> 00:04:12,320 Speaker 1: Honesty, unlike a professional CEO in a listed company, who 100 00:04:12,440 --> 00:04:14,480 Speaker 1: usually takes a different approach. 101 00:04:14,160 --> 00:04:17,080 Speaker 2: When things aren't going well. They might emphasize the resilience 102 00:04:17,120 --> 00:04:17,680 Speaker 2: of the company. 103 00:04:17,680 --> 00:04:19,080 Speaker 1: They'll highlight the green shoots. 104 00:04:19,080 --> 00:04:21,800 Speaker 2: They'll keep an optimistic view to protect market confidence in 105 00:04:21,839 --> 00:04:22,560 Speaker 2: their own position. 106 00:04:22,640 --> 00:04:25,240 Speaker 1: But be Man, this optimistic spin isn't always for the 107 00:04:25,279 --> 00:04:26,839 Speaker 1: better of the company in the long term. 108 00:04:26,880 --> 00:04:29,480 Speaker 2: In fact, a study by Credit Swiss found that founders 109 00:04:29,480 --> 00:04:32,120 Speaker 2: and founding families that retain twenty percent or more of 110 00:04:32,120 --> 00:04:36,520 Speaker 2: a company's capital see superior performance to non family owned companies. 111 00:04:36,600 --> 00:04:40,000 Speaker 1: Yep, these family owned public companies outperformed non family owned 112 00:04:40,040 --> 00:04:43,000 Speaker 1: companies an annual average rate of three point one percent. 113 00:04:43,040 --> 00:04:45,960 Speaker 2: So While a family run business might sound gloomier in 114 00:04:46,000 --> 00:04:48,360 Speaker 2: the short term, it could actually be part of its 115 00:04:48,480 --> 00:04:49,839 Speaker 2: commitment to long term growth. 116 00:04:49,920 --> 00:04:52,840 Speaker 1: Yeah. For our third and final story, the Labor government 117 00:04:52,880 --> 00:04:55,960 Speaker 1: has brought forward an expansion of its five percent home 118 00:04:56,000 --> 00:04:57,760 Speaker 1: deposit scheme by three months. 119 00:04:57,839 --> 00:05:00,160 Speaker 2: Get ready to see some moven and or shaken the 120 00:05:00,160 --> 00:05:01,479 Speaker 2: property market. What is going on here? 121 00:05:01,520 --> 00:05:04,080 Speaker 1: It's the background, b man. The first home buyer guarantee 122 00:05:04,200 --> 00:05:06,279 Speaker 1: was first announced in the twenty twenty two budget, which 123 00:05:06,279 --> 00:05:08,480 Speaker 1: allowed first home buyers to purchase a home with as 124 00:05:08,520 --> 00:05:10,280 Speaker 1: little as five percent deposit. 125 00:05:09,960 --> 00:05:12,880 Speaker 2: Back then, with fifty thousand places offered for each financial year. 126 00:05:12,920 --> 00:05:14,760 Speaker 1: But you may remember, as part of the election in May, 127 00:05:14,920 --> 00:05:17,839 Speaker 1: the Labor government went hard on a new expanded offer 128 00:05:17,960 --> 00:05:18,720 Speaker 1: for first home buyers. 129 00:05:18,800 --> 00:05:20,839 Speaker 2: Yea, It promised it by twenty twenty six it would 130 00:05:20,880 --> 00:05:23,240 Speaker 2: offer a new first home buyer guarantee. 131 00:05:23,240 --> 00:05:25,000 Speaker 1: It would let first home buyers get into a property 132 00:05:25,040 --> 00:05:27,200 Speaker 1: with a five percent deposit and the government would act 133 00:05:27,240 --> 00:05:29,279 Speaker 1: as a guarante or for the other fifteen percent. 134 00:05:29,320 --> 00:05:31,479 Speaker 2: Of course, Jesse boy, there are some restrictions, but the 135 00:05:31,520 --> 00:05:33,960 Speaker 2: income limits for this scheme have been broaden and the 136 00:05:33,960 --> 00:05:36,440 Speaker 2: property price caps have been raised too. And while This 137 00:05:36,560 --> 00:05:38,320 Speaker 2: was meant to be launched in twenty twenty six. The 138 00:05:38,320 --> 00:05:40,840 Speaker 2: government has now brought this forward to October this year. 139 00:05:40,880 --> 00:05:43,640 Speaker 2: In fact, be Man around seventy thousand first home buyers 140 00:05:43,640 --> 00:05:46,400 Speaker 2: are expected to use the scheme in the first year alone, 141 00:05:46,440 --> 00:05:49,080 Speaker 2: and while this may help more ossies get into the market, 142 00:05:49,120 --> 00:05:52,560 Speaker 2: economists worn it could push up property prices even further 143 00:05:52,720 --> 00:05:54,440 Speaker 2: for houses within the property cap. 144 00:05:54,960 --> 00:05:56,320 Speaker 1: So what is the key learning here? 145 00:05:56,400 --> 00:05:59,440 Speaker 2: Housing affordability debates often come back to a key tension 146 00:05:59,560 --> 00:06:02,320 Speaker 2: demands side policies first supply side policies. 147 00:06:02,560 --> 00:06:05,080 Speaker 1: In the short term, these demand side policies, like the 148 00:06:05,120 --> 00:06:07,919 Speaker 1: first home buyer guarantee, feels like relief for buy it. 149 00:06:07,960 --> 00:06:10,480 Speaker 2: But it also increases competition in the market, which can 150 00:06:10,520 --> 00:06:13,320 Speaker 2: push prices higher. The government have plans around the supply 151 00:06:13,400 --> 00:06:14,840 Speaker 2: side too. Surely they do have. 152 00:06:14,839 --> 00:06:16,839 Speaker 1: Plans to build one hundred thousand new houses, but it 153 00:06:16,880 --> 00:06:17,920 Speaker 1: doesn't happen overnight. 154 00:06:18,040 --> 00:06:20,440 Speaker 2: In fact, they reckon it will take eight years to 155 00:06:20,440 --> 00:06:21,159 Speaker 2: get to this number. 156 00:06:21,160 --> 00:06:23,200 Speaker 1: You've got to rezone, you've got to get counsel approvals, 157 00:06:23,240 --> 00:06:24,520 Speaker 1: and then you've actually got to build. 158 00:06:24,800 --> 00:06:27,920 Speaker 2: In fact, SQM Research believes this policy could lead to 159 00:06:28,120 --> 00:06:30,720 Speaker 2: a more than fifteen percent increase in prices over a 160 00:06:30,720 --> 00:06:31,880 Speaker 2: six year period. 161 00:06:31,600 --> 00:06:33,640 Speaker 1: On top of the annual growth of the property mask. 162 00:06:33,720 --> 00:06:36,159 Speaker 2: So while the first home buyer guarantee gets people into 163 00:06:36,200 --> 00:06:39,120 Speaker 2: the market fast, that it may contribute to the affordability 164 00:06:39,120 --> 00:06:40,880 Speaker 2: pressures that it is trying to fix. 165 00:06:40,960 --> 00:06:43,440 Speaker 1: Interesting man, here's a little bit of a sneak peek 166 00:06:43,440 --> 00:06:46,200 Speaker 1: into the average salary breakdown by state. Did you know 167 00:06:46,240 --> 00:06:49,440 Speaker 1: that Tasmania, on average, there's the least FLUXAM. If you 168 00:06:49,440 --> 00:06:51,200 Speaker 1: want to learn more about which state is earning the 169 00:06:51,320 --> 00:06:53,240 Speaker 1: most money, make sure to download the Flux app and 170 00:06:53,360 --> 00:06:53,839 Speaker 1: check it out. 171 00:06:53,880 --> 00:06:56,600 Speaker 2: Thanks for listening and we'll see you on Friday.