1 00:00:05,320 --> 00:00:08,000 Speaker 1: This is what the flux. I'm Brett and I'm justin 2 00:00:08,119 --> 00:00:10,400 Speaker 1: and it's Monday, the first of September. Juzzy boy. 3 00:00:10,440 --> 00:00:12,920 Speaker 2: As the property market heats up, so two is the 4 00:00:12,960 --> 00:00:14,320 Speaker 2: market for mortgage brokers. 5 00:00:14,400 --> 00:00:14,920 Speaker 1: Get this one. 6 00:00:15,000 --> 00:00:17,639 Speaker 2: In the March quarter this year, mortgage brokers around seventy 7 00:00:17,680 --> 00:00:20,079 Speaker 2: seven percent of all new residential home loans. That is 8 00:00:20,160 --> 00:00:22,239 Speaker 2: up more than seven percent since the same quarter just 9 00:00:22,280 --> 00:00:23,320 Speaker 2: two years ago. 10 00:00:23,280 --> 00:00:25,520 Speaker 1: Cutting the lunch of all the banks. Be man. Indeed, 11 00:00:26,160 --> 00:00:28,320 Speaker 1: it is a new month, which means we have just 12 00:00:28,360 --> 00:00:31,200 Speaker 1: done a deep dive into the best performance stocks on 13 00:00:31,280 --> 00:00:34,760 Speaker 1: the AX for August. There are some super interesting names there, 14 00:00:34,800 --> 00:00:36,640 Speaker 1: some you wouldn't expect, some you would make sure to 15 00:00:36,680 --> 00:00:37,960 Speaker 1: download the app and check it out. 16 00:00:38,000 --> 00:00:41,760 Speaker 2: Three revolutionary stories today, Juzzy boy, let's do it for 17 00:00:41,800 --> 00:00:45,000 Speaker 2: our first. Dominoes has served up its first annual loss 18 00:00:45,040 --> 00:00:48,600 Speaker 2: in twenty years after major discounting. But now they've warned 19 00:00:48,640 --> 00:00:51,639 Speaker 2: the discounting ends here. You're telling me no more three 20 00:00:51,680 --> 00:00:53,319 Speaker 2: pizzas and three sides for thirty ninety nine. 21 00:00:53,320 --> 00:00:55,120 Speaker 1: B man, what is going on here? So? 22 00:00:55,200 --> 00:00:58,520 Speaker 2: Dominoes is actually known as Domino's Pizza Enterprises, which is 23 00:00:58,560 --> 00:00:59,960 Speaker 2: Australia's largest pizza chain. 24 00:01:00,040 --> 00:01:02,240 Speaker 1: It's got more than three and a half thousand outlets 25 00:01:02,280 --> 00:01:05,600 Speaker 1: sprinkled across Australasia and Europe and Asia. 26 00:01:05,280 --> 00:01:06,920 Speaker 2: As well, and Josie Wait. It's fair to say that 27 00:01:07,000 --> 00:01:10,040 Speaker 2: during COVID, Dominoes was hotter than a spicy meat lover's 28 00:01:10,080 --> 00:01:10,640 Speaker 2: pits there. 29 00:01:10,760 --> 00:01:12,880 Speaker 1: Yep. It shares hit a record one hundred and sixty 30 00:01:12,880 --> 00:01:15,240 Speaker 1: one dollars during that period, but more recently they've been 31 00:01:15,280 --> 00:01:17,920 Speaker 1: sitting around the fifteen dollar mark and doesn't look like 32 00:01:17,959 --> 00:01:20,240 Speaker 1: it's going to get any better anytime soon. Nope. Dominoes 33 00:01:20,240 --> 00:01:22,600 Speaker 1: warned that it suffered a three point seven million dollar 34 00:01:22,640 --> 00:01:24,800 Speaker 1: loss in the last financial year, and this is its 35 00:01:24,880 --> 00:01:27,560 Speaker 1: first annual loss in two decades, compared to a ninety 36 00:01:27,560 --> 00:01:29,920 Speaker 1: two million dollar profit just last year. And the reason 37 00:01:29,920 --> 00:01:33,039 Speaker 1: for this loss, mister Margarita, it was mainly because it's 38 00:01:33,040 --> 00:01:35,520 Speaker 1: spent one hundred and twenty mil closing three hundred and 39 00:01:35,520 --> 00:01:38,560 Speaker 1: twelve under cooked stores, mostly in Japan. But be man, 40 00:01:38,680 --> 00:01:41,679 Speaker 1: Dominoes is planning a big reset in FI twenty six 41 00:01:41,760 --> 00:01:44,479 Speaker 1: of everything. Yep. The plan is to ditch confusing discounts 42 00:01:44,520 --> 00:01:47,040 Speaker 1: and vouchers and rather they're going to lean into every 43 00:01:47,080 --> 00:01:47,960 Speaker 1: day low pricing. 44 00:01:48,040 --> 00:01:50,600 Speaker 2: Seems like investors are unsure if this is actually the 45 00:01:50,640 --> 00:01:51,560 Speaker 2: recipe for success. 46 00:01:51,640 --> 00:01:53,920 Speaker 1: Yep. Many believe this ain't just a cycle, but something 47 00:01:54,040 --> 00:01:57,280 Speaker 1: structurally wrong with the Domino's business. That's why share price 48 00:01:57,280 --> 00:01:57,880 Speaker 1: took such a hit. 49 00:01:57,920 --> 00:01:59,960 Speaker 2: Hopefully the gluten free pieces are sticking around, Josy Boy. 50 00:02:00,120 --> 00:02:01,280 Speaker 2: So what is the key learning here? 51 00:02:01,360 --> 00:02:04,320 Speaker 1: Every Day low pricing is a retail strategy where companies 52 00:02:04,360 --> 00:02:07,600 Speaker 1: commit to offering consistently lower prices rather than relying on 53 00:02:07,640 --> 00:02:10,680 Speaker 1: promotions or discount you seeb Man. Discounts and promotions they 54 00:02:10,760 --> 00:02:12,840 Speaker 1: might boost sales in the short term, but they also 55 00:02:12,919 --> 00:02:15,600 Speaker 1: train customers to only buy when there's a good deal. 56 00:02:15,720 --> 00:02:17,320 Speaker 2: In fact, Jazi Boy a bit of a reference here. 57 00:02:17,320 --> 00:02:19,639 Speaker 2: Procter and Gamble in Germany ran a test on their 58 00:02:19,680 --> 00:02:23,600 Speaker 2: products between every day low pricing and the high low approach. 59 00:02:23,240 --> 00:02:25,320 Speaker 1: And over several months they found that every day low 60 00:02:25,320 --> 00:02:28,800 Speaker 1: pricing led to higher loyalty and higher repeat purchases than 61 00:02:28,840 --> 00:02:31,800 Speaker 1: the high low strategy with discounts and promotions, So Jaziboy. 62 00:02:31,919 --> 00:02:34,480 Speaker 2: While Dominoes might be known for its promotional pizza deals, 63 00:02:34,520 --> 00:02:36,360 Speaker 2: it may need to change its appeal. 64 00:02:36,520 --> 00:02:38,760 Speaker 1: It might even need to start appealing to people based 65 00:02:38,840 --> 00:02:41,480 Speaker 1: on the taste of the pizzas. So it's no surprise 66 00:02:41,520 --> 00:02:43,520 Speaker 1: that Domino share price copped a bit of a whack 67 00:02:44,000 --> 00:02:47,519 Speaker 1: for our second story. Chat GPT's open Ai is opening 68 00:02:47,520 --> 00:02:50,720 Speaker 1: its first Australian office and the winner is Sidney. 69 00:02:50,880 --> 00:02:54,480 Speaker 2: You huge win for Ai in Australia, particularly exciting for Sydney. 70 00:02:54,560 --> 00:02:56,880 Speaker 2: Juzy boy, tell me more. Okay, So open Ai and 71 00:02:56,960 --> 00:02:59,600 Speaker 2: it's chat GPT chatbot. They burst onto the scene in 72 00:02:59,639 --> 00:03:02,240 Speaker 2: Novenae twenty twenty two, and since then its adoption and 73 00:03:02,320 --> 00:03:04,440 Speaker 2: even cultural relevance has grown like crazy. 74 00:03:04,520 --> 00:03:06,720 Speaker 1: Yeah. Open ai has raised a lot of money across 75 00:03:06,760 --> 00:03:09,320 Speaker 1: the journey, and it's financially backed in a big way 76 00:03:09,400 --> 00:03:10,040 Speaker 1: by Microsoft. 77 00:03:10,120 --> 00:03:12,440 Speaker 2: Now in terms of valuation, jazy boy, open ai is 78 00:03:12,480 --> 00:03:16,760 Speaker 2: reportedly approaching a five hundred billion US dollar valuation in 79 00:03:16,800 --> 00:03:18,040 Speaker 2: an upcoming share sale. 80 00:03:18,040 --> 00:03:20,200 Speaker 1: But get this, be man. The number of weekly active 81 00:03:20,280 --> 00:03:22,919 Speaker 1: users of chatch apt in Australia has increased by two 82 00:03:22,919 --> 00:03:25,840 Speaker 1: and a half times just in the past year, and globally, 83 00:03:26,000 --> 00:03:28,880 Speaker 1: I'm talking more than seven hundred million people use it weekly. 84 00:03:29,000 --> 00:03:32,000 Speaker 1: But right now, open aiy's nearest employees to Australia have 85 00:03:32,080 --> 00:03:34,720 Speaker 1: been based in its Asia specific office in Singapore. 86 00:03:34,800 --> 00:03:37,480 Speaker 2: So on Thursday last week, open ai said it's fast 87 00:03:37,480 --> 00:03:39,880 Speaker 2: growing user base in Australia and reason deals like its 88 00:03:39,920 --> 00:03:42,440 Speaker 2: partnership with Combank means it's time to have a local 89 00:03:42,480 --> 00:03:44,040 Speaker 2: operation and having a local. 90 00:03:43,800 --> 00:03:46,800 Speaker 1: Presence will enable it to work more closely with policymakers 91 00:03:46,880 --> 00:03:50,680 Speaker 1: and deepen relationships with Australian researchers and institutions. So what 92 00:03:50,760 --> 00:03:52,840 Speaker 1: is the key learning here? The government is currently the 93 00:03:52,840 --> 00:03:55,120 Speaker 1: process of working out what it chooses to fight and 94 00:03:55,160 --> 00:03:57,960 Speaker 1: what it chooses to facilitate when it comes to AI innovation. 95 00:03:58,080 --> 00:04:01,280 Speaker 1: The government's exploring how to strike the ripeowns between introducing 96 00:04:01,360 --> 00:04:05,000 Speaker 1: laws to protect workers and also enabling AI adoption in 97 00:04:05,000 --> 00:04:05,520 Speaker 1: the right way. 98 00:04:05,560 --> 00:04:09,000 Speaker 2: For example, one contentious issue in Australia over the last 99 00:04:09,000 --> 00:04:11,840 Speaker 2: few years has been the relationship between big tech companies 100 00:04:11,840 --> 00:04:13,040 Speaker 2: and local publishers. 101 00:04:13,080 --> 00:04:15,760 Speaker 1: Who can forget Schoma's government's brawl with big dogs like 102 00:04:15,800 --> 00:04:17,640 Speaker 1: Meta and Google back in twenty twenty one. 103 00:04:17,600 --> 00:04:20,600 Speaker 2: And interestingly, open ai received no incentives from the New 104 00:04:20,640 --> 00:04:23,359 Speaker 2: South Wales government to choose Sydney as its headquarters lex 105 00:04:23,720 --> 00:04:26,240 Speaker 2: So why did open ai choose Australia. 106 00:04:26,279 --> 00:04:29,800 Speaker 1: Well, apparently the local talent pool and proximity partners and 107 00:04:29,839 --> 00:04:31,479 Speaker 1: customers like Combank and Camera. 108 00:04:31,600 --> 00:04:34,920 Speaker 2: But what's surprising given our small population is that Australia 109 00:04:35,000 --> 00:04:37,679 Speaker 2: is in the top ten countries globally for Chat GPT. 110 00:04:37,960 --> 00:04:40,240 Speaker 1: That's in terms of the number of developers using open 111 00:04:40,279 --> 00:04:43,320 Speaker 1: Ai products as well as Chat GPT subscribers. So open 112 00:04:43,360 --> 00:04:45,159 Speaker 1: Our's office in Australia means it will be able to 113 00:04:45,160 --> 00:04:48,960 Speaker 1: focus more deeply on building business relationships, but also increase 114 00:04:48,960 --> 00:04:50,039 Speaker 1: its presence in Camebra. 115 00:04:50,200 --> 00:04:54,200 Speaker 2: For our third and final story, ossie retailer Levisa has 116 00:04:54,200 --> 00:04:56,920 Speaker 2: seen a fourteen percent jump in annual revenue as it 117 00:04:56,960 --> 00:04:59,839 Speaker 2: prepares to steal market share from its major competitor, who 118 00:04:59,880 --> 00:05:01,919 Speaker 2: is now. 119 00:05:01,160 --> 00:05:04,120 Speaker 1: Sparkly little opportunity for an Aussie jewelry brand. So what 120 00:05:04,279 --> 00:05:04,880 Speaker 1: is the story here? 121 00:05:04,960 --> 00:05:07,800 Speaker 2: So Lavisa is an Australian jewelry brand that was founded 122 00:05:07,800 --> 00:05:08,840 Speaker 2: in twenty ten and they. 123 00:05:08,760 --> 00:05:12,080 Speaker 1: Grew pretty quickly by selling cheap earrings and necklaces and 124 00:05:12,200 --> 00:05:14,680 Speaker 1: bracelets that were twenty yet affordable and. 125 00:05:14,640 --> 00:05:18,119 Speaker 2: The jewelry has a lifespan of approximately three days and benman. 126 00:05:18,240 --> 00:05:20,719 Speaker 1: Since twenty ten, Lavisa has grown to over one thousand 127 00:05:20,800 --> 00:05:23,480 Speaker 1: retail stores in over fifty countries and in the latest 128 00:05:23,480 --> 00:05:26,720 Speaker 1: financial year, Lavisa's growth in the US, Canada and Europe 129 00:05:26,760 --> 00:05:30,280 Speaker 1: paid them back gold. That's right, Lavisa's reported an increase 130 00:05:30,279 --> 00:05:33,080 Speaker 1: of fourteen percent to their annual revenue compared to last 131 00:05:33,120 --> 00:05:35,960 Speaker 1: financial year, and investors are loving these shiny results. But 132 00:05:35,960 --> 00:05:38,680 Speaker 1: be man, that is not all because Lavisa's dialing up 133 00:05:38,720 --> 00:05:42,520 Speaker 1: their global expansion after a major jewelry competitor called Claire's 134 00:05:42,640 --> 00:05:45,640 Speaker 1: actually filed for bankruptcy this August. So now it's all 135 00:05:45,680 --> 00:05:49,240 Speaker 1: systems gore for an opportunistic expansio. So what is the 136 00:05:49,279 --> 00:05:49,920 Speaker 1: key landing year? 137 00:05:50,040 --> 00:05:53,440 Speaker 2: Opportunistic expansion is when a company takes advantage of external 138 00:05:53,440 --> 00:05:56,000 Speaker 2: events and market shifts to grow in new markets. 139 00:05:56,040 --> 00:05:58,839 Speaker 1: While Lavisa's already operating in many of the same markets 140 00:05:58,880 --> 00:06:02,440 Speaker 1: as Claire's, the sudden downfall has become a huge opportunity 141 00:06:02,480 --> 00:06:05,400 Speaker 1: for Laisa to capture new market share. Yep, Lavisa plans 142 00:06:05,440 --> 00:06:08,320 Speaker 1: to target Claire's customer base with a similar product offering 143 00:06:08,360 --> 00:06:11,640 Speaker 1: and quickly open new stores in locations near Claire's old 144 00:06:11,680 --> 00:06:14,599 Speaker 1: source and Juseyboy, Larisa isn't the only company to turn 145 00:06:14,640 --> 00:06:18,320 Speaker 1: a competitor's misfortune into a growth opportunity. Back in twenty twelve, 146 00:06:18,400 --> 00:06:22,560 Speaker 1: Hungary's national airline MALEV suddenly went out of business. 147 00:06:22,760 --> 00:06:26,520 Speaker 2: What a reference tell us more about Hungry's airlines, Jusey 148 00:06:26,520 --> 00:06:26,960 Speaker 2: boy Well. 149 00:06:27,120 --> 00:06:30,280 Speaker 1: Seven hours after they went out of business, Ryanair swooped 150 00:06:30,320 --> 00:06:33,200 Speaker 1: in to announce they've created a new base in Budapest. 151 00:06:33,440 --> 00:06:36,680 Speaker 2: Ryanair effectively replaced thirty one flight routes in and out 152 00:06:36,680 --> 00:06:38,640 Speaker 2: of Budapest that its competitor used to own. 153 00:06:38,760 --> 00:06:42,320 Speaker 1: So youcb man time is everything in Australian business and 154 00:06:42,480 --> 00:06:44,960 Speaker 1: Hungarian business too. Fox out. If you're trading in and 155 00:06:45,000 --> 00:06:46,720 Speaker 1: out of the share market and always want to keep 156 00:06:46,720 --> 00:06:48,800 Speaker 1: a track of the best performing companies, we have it 157 00:06:48,880 --> 00:06:50,600 Speaker 1: all covered in the Flux app today, so if you 158 00:06:50,600 --> 00:06:52,320 Speaker 1: want to learn more, make sure to download a Flex 159 00:06:52,320 --> 00:06:54,360 Speaker 1: app and check it out. Thanks for listening and we'll 160 00:06:54,400 --> 00:06:55,720 Speaker 1: see you on Wednesday.