1 00:00:05,120 --> 00:00:06,440 Speaker 1: This is what the Flux. 2 00:00:06,519 --> 00:00:08,799 Speaker 2: I'm Brett and I'm justin and it's Monday, the twenty 3 00:00:08,840 --> 00:00:10,160 Speaker 2: fourth of novemb Josie Boy. 4 00:00:10,240 --> 00:00:14,080 Speaker 1: Despite invidious bumper results late last week, investors are still 5 00:00:14,120 --> 00:00:16,599 Speaker 1: shaking in their cash field booties. Get this one. The 6 00:00:16,680 --> 00:00:20,840 Speaker 1: Vicks Volatility Index, often called the fear gauge, jumped almost 7 00:00:20,920 --> 00:00:23,279 Speaker 1: twelve percent late last week. And the last time I 8 00:00:23,320 --> 00:00:25,800 Speaker 1: spiked this high was in April, when we're all worried 9 00:00:25,880 --> 00:00:28,880 Speaker 1: about a full blown trade war. This time there is 10 00:00:28,960 --> 00:00:31,680 Speaker 1: a specific event of concerns. 11 00:00:31,120 --> 00:00:33,279 Speaker 2: Even a bit more eerie then uh huh flapp As 12 00:00:33,280 --> 00:00:34,760 Speaker 2: we come towards the end of the month, if you 13 00:00:34,800 --> 00:00:37,120 Speaker 2: haven't checked out our academy course this month, it is 14 00:00:37,159 --> 00:00:39,200 Speaker 2: the perfect time. We know that getting into the property 15 00:00:39,200 --> 00:00:42,400 Speaker 2: market can feel as complicated as learning in Ourgebraic equation, 16 00:00:42,560 --> 00:00:44,680 Speaker 2: so we've covered the ins and outs of buying a property, 17 00:00:44,720 --> 00:00:46,960 Speaker 2: including tips for twenty twenty six. To make sure to 18 00:00:47,000 --> 00:00:49,280 Speaker 2: download the Flux app and check out the academy this month. 19 00:00:49,360 --> 00:00:52,839 Speaker 1: Three delightful stories today, Josy Boy, Let's do it for 20 00:00:53,040 --> 00:00:57,680 Speaker 1: our first, the executives at Reese the plumbing materials Wizards 21 00:00:58,000 --> 00:01:00,880 Speaker 1: have copped a second strike on their pay after shareholders 22 00:01:00,880 --> 00:01:01,920 Speaker 1: have lost their patients. 23 00:01:01,960 --> 00:01:04,479 Speaker 2: Nothing like a boardroom drama to spice up the plumbing. 24 00:01:04,520 --> 00:01:06,280 Speaker 2: I'le be man so. 25 00:01:06,360 --> 00:01:09,160 Speaker 1: Reese is the Australian plumbing and bathroom supplies giant, with 26 00:01:09,160 --> 00:01:11,960 Speaker 1: more than nine hundred branches across Australia and New Zealand 27 00:01:12,000 --> 00:01:13,240 Speaker 1: and more recently the US. 28 00:01:13,280 --> 00:01:16,120 Speaker 2: And well you might think it's all pipes and bathtubs, 29 00:01:16,240 --> 00:01:19,119 Speaker 2: Reese actually claims to be building a quote better world 30 00:01:19,200 --> 00:01:20,039 Speaker 2: for our customers. 31 00:01:20,280 --> 00:01:22,360 Speaker 1: Pretty bold statement from Reese, and. 32 00:01:22,319 --> 00:01:24,920 Speaker 2: Over the past ten years's share price has gone to 33 00:01:25,040 --> 00:01:26,000 Speaker 2: boomtown YEAP. 34 00:01:26,040 --> 00:01:28,760 Speaker 1: From twenty fourteen to twenty twenty four its shares were 35 00:01:28,840 --> 00:01:30,240 Speaker 1: up more than five hundred percent. 36 00:01:30,319 --> 00:01:32,880 Speaker 2: But in August this year, RAC's CEO ward that it's 37 00:01:32,920 --> 00:01:36,160 Speaker 2: earnings before interest and tax it's ebert felt twenty percent 38 00:01:36,160 --> 00:01:37,240 Speaker 2: in the last financial year. 39 00:01:37,400 --> 00:01:38,840 Speaker 1: Investors were not happy. 40 00:01:39,120 --> 00:01:42,040 Speaker 2: Jan yep So Now b Maan shareholders have delivered a 41 00:01:42,120 --> 00:01:45,000 Speaker 2: protest vote on Raese's executive. 42 00:01:44,400 --> 00:01:47,280 Speaker 1: Pay YEAP forty four percent of shareholders voted against the 43 00:01:47,360 --> 00:01:50,560 Speaker 1: current mineration after a thirty percent share price drop over 44 00:01:50,560 --> 00:01:51,680 Speaker 1: the last six months. 45 00:01:51,400 --> 00:01:54,000 Speaker 2: And Beman this is the second strike against the Reese 46 00:01:54,120 --> 00:01:57,680 Speaker 2: exec remuneration which actually triggered a bored spill vote. 47 00:01:57,720 --> 00:02:00,560 Speaker 1: Now the big problem child, you ask, Well, it's a 48 00:02:00,680 --> 00:02:03,440 Speaker 1: US one point nine billion dollar acquisition of Morseco. 49 00:02:03,640 --> 00:02:06,559 Speaker 2: Yep, Mosco has been struggling in a soft US housing 50 00:02:06,600 --> 00:02:07,600 Speaker 2: market for shareholders. 51 00:02:07,680 --> 00:02:10,640 Speaker 1: Reckon that if they're paying with a lower share price, 52 00:02:10,760 --> 00:02:11,680 Speaker 1: execs need to pay. 53 00:02:11,560 --> 00:02:13,960 Speaker 2: Two And the second strike is a big deal in 54 00:02:14,000 --> 00:02:15,760 Speaker 2: Australian corporate governance, it. 55 00:02:15,639 --> 00:02:16,919 Speaker 1: Is, So what's the key learning here? 56 00:02:16,960 --> 00:02:20,160 Speaker 2: When a company stumbles, the quickest placed shareholder's look is 57 00:02:20,160 --> 00:02:21,400 Speaker 2: the exec paypacket. 58 00:02:21,440 --> 00:02:24,080 Speaker 1: Now, a second strike is basically the corporate equivalent of 59 00:02:24,080 --> 00:02:26,919 Speaker 1: shareholders slamming the big red alarm button. 60 00:02:27,200 --> 00:02:30,360 Speaker 2: It essentially exists to keep public company boards accountable. 61 00:02:30,480 --> 00:02:33,000 Speaker 1: Works like this. Each year's shareholders vote on the company's 62 00:02:33,040 --> 00:02:36,680 Speaker 1: executive remuneration report. If twenty five percent or more shareholders 63 00:02:36,760 --> 00:02:39,120 Speaker 1: vote against it, that is a first strike. If the 64 00:02:39,160 --> 00:02:41,480 Speaker 1: same thing happens again the next year, it becomes a 65 00:02:41,639 --> 00:02:42,280 Speaker 1: second strike. 66 00:02:42,320 --> 00:02:44,400 Speaker 2: And once a company hits a second strike, it triggers 67 00:02:44,440 --> 00:02:46,840 Speaker 2: a whole board spill resolution. 68 00:02:46,560 --> 00:02:48,919 Speaker 1: That forces shareholders to vote on whether the entire board 69 00:02:48,960 --> 00:02:51,200 Speaker 1: except the CEO should be removed and re elected. 70 00:02:51,240 --> 00:02:54,079 Speaker 2: And they've added well, Race's board survived the spill, it's 71 00:02:54,120 --> 00:02:55,960 Speaker 2: still pretty pretty embarrassing. 72 00:02:56,000 --> 00:02:58,200 Speaker 1: Well, it does send a clear message that investors are 73 00:02:58,240 --> 00:03:01,280 Speaker 1: not thrilled with company performed and executive pay, and. 74 00:03:01,240 --> 00:03:04,240 Speaker 2: Whether fair or not, shareholders expect leadership teams to share 75 00:03:04,280 --> 00:03:05,720 Speaker 2: the pain when results weak it. 76 00:03:05,840 --> 00:03:09,240 Speaker 1: For our second story, the owner of Ladbrokes and Neds 77 00:03:09,320 --> 00:03:12,440 Speaker 1: in Australia is cutting jobs and winding back perks as 78 00:03:12,440 --> 00:03:15,639 Speaker 1: it tries to just stabilize its battling Aussie business, one. 79 00:03:15,600 --> 00:03:17,320 Speaker 2: Of the big plays in the betting space here, b Man, 80 00:03:17,400 --> 00:03:18,919 Speaker 2: that's big news. So what is the story? 81 00:03:19,000 --> 00:03:22,120 Speaker 1: So n Taine is the London listed betting giant that 82 00:03:22,160 --> 00:03:25,960 Speaker 1: owns lad Brokes on Neds, two of Australia's bigger online bookies, and. 83 00:03:25,919 --> 00:03:28,360 Speaker 2: It's a big, big beast. Get this, And Tane had 84 00:03:28,400 --> 00:03:30,679 Speaker 2: almost two million Oussie customers last. 85 00:03:30,480 --> 00:03:33,080 Speaker 1: Year, which is around seventeen percent of the market share. 86 00:03:33,120 --> 00:03:35,400 Speaker 2: And then Man, this restructure is expected to save them 87 00:03:35,440 --> 00:03:38,640 Speaker 2: around sixty million bucks. And in Tanne isn't alone cutting 88 00:03:38,680 --> 00:03:40,280 Speaker 2: jobs in the gambling industry, b Man. 89 00:03:40,520 --> 00:03:43,680 Speaker 1: Nope, Star Entertainment and Crown Resorts are chopping senior roles 90 00:03:43,680 --> 00:03:44,040 Speaker 1: as well. 91 00:03:44,080 --> 00:03:46,680 Speaker 2: Because the whole gambling industry is facing high costs and 92 00:03:46,760 --> 00:03:48,600 Speaker 2: a whole lot of regulatory heat. 93 00:03:48,680 --> 00:03:51,320 Speaker 1: But boy, that is not all. And Taine is also 94 00:03:51,520 --> 00:03:53,040 Speaker 1: rolling back work perks. 95 00:03:53,160 --> 00:03:55,600 Speaker 2: Yeah, it's forcing their staff to return to the office 96 00:03:55,640 --> 00:03:58,200 Speaker 2: two days a week from permanently working from home. 97 00:03:58,240 --> 00:04:00,320 Speaker 1: And it's ending its nine day fortnight as well, not 98 00:04:00,400 --> 00:04:03,920 Speaker 1: the nine day fortnite. So what is the key learning here? 99 00:04:04,200 --> 00:04:07,880 Speaker 2: When unemployment rises and the talent market calls, companies often 100 00:04:07,960 --> 00:04:09,440 Speaker 2: become a lot less generous. 101 00:04:09,600 --> 00:04:12,560 Speaker 1: Yeah, the nine day Fortnite was originally rolled out to 102 00:04:12,600 --> 00:04:14,280 Speaker 1: attract and retain staff. 103 00:04:13,920 --> 00:04:16,800 Speaker 2: You know, right after that old pandemic, when the labor 104 00:04:16,800 --> 00:04:18,239 Speaker 2: market was extremely tight. 105 00:04:18,440 --> 00:04:21,040 Speaker 1: I do recall the unemployment rate was sitting at about 106 00:04:21,040 --> 00:04:22,360 Speaker 1: three point four percent, and. 107 00:04:22,320 --> 00:04:24,839 Speaker 2: Now the unemployment rates sitting around four and a half percent, 108 00:04:25,000 --> 00:04:26,880 Speaker 2: many jobs are a lot more competitive. 109 00:04:26,920 --> 00:04:29,839 Speaker 1: So as the balance of power shifts back towards employers, 110 00:04:29,880 --> 00:04:31,800 Speaker 1: many are winding these perks back. 111 00:04:31,920 --> 00:04:34,880 Speaker 2: If fact, be Men, Medibank, Booper, and now Intained have 112 00:04:35,000 --> 00:04:36,960 Speaker 2: all pulled the plug on the nine day. 113 00:04:36,800 --> 00:04:40,000 Speaker 1: Fortnite Right now, companies are prioritizing cost control over talent 114 00:04:40,080 --> 00:04:41,080 Speaker 1: at all costs. 115 00:04:40,760 --> 00:04:43,440 Speaker 2: And Intain's move is a pretty clear signal that the 116 00:04:43,480 --> 00:04:45,760 Speaker 2: talent boom of twenty twenty one to twenty twenty three 117 00:04:45,920 --> 00:04:47,359 Speaker 2: is fading pretty fast. 118 00:04:47,520 --> 00:04:51,240 Speaker 1: For our third and final story, monash IVF has reported 119 00:04:51,360 --> 00:04:54,799 Speaker 1: weaker than expected performance after it feels the after effects 120 00:04:54,839 --> 00:04:56,560 Speaker 1: of its embryo transfer mix ups. 121 00:04:56,880 --> 00:04:59,359 Speaker 2: So as the clients now investors are also losing faith. 122 00:04:59,560 --> 00:05:00,680 Speaker 2: So what the story? So? 123 00:05:00,760 --> 00:05:04,640 Speaker 1: Monash IVF is the asxisted group that specializes in fertility 124 00:05:04,640 --> 00:05:05,640 Speaker 1: services in Australia. 125 00:05:05,680 --> 00:05:08,640 Speaker 2: They do everything from IVF to egg freezing, to genetic 126 00:05:08,640 --> 00:05:10,279 Speaker 2: testing and a whole lot more. 127 00:05:10,760 --> 00:05:13,520 Speaker 1: Boy Earlier this year, monash IVF messed up big time. 128 00:05:13,839 --> 00:05:18,479 Speaker 2: They mixed up their clients embryo transfers not once, but twice. 129 00:05:18,000 --> 00:05:20,640 Speaker 1: And in one case they didn't realize until two years 130 00:05:20,720 --> 00:05:22,840 Speaker 1: later after a baby was already delivered. 131 00:05:23,040 --> 00:05:24,960 Speaker 2: Not a good look for Monoshavif. 132 00:05:25,040 --> 00:05:28,159 Speaker 1: No, it was a massive hit to Monoshavif's brand reputation. 133 00:05:28,360 --> 00:05:31,480 Speaker 2: And now they've reported weaker than expected performance for the 134 00:05:31,520 --> 00:05:33,280 Speaker 2: four months of this financial year. 135 00:05:33,360 --> 00:05:35,680 Speaker 1: Yep, they've been forced to drop their already reduced four 136 00:05:35,720 --> 00:05:38,120 Speaker 1: year earnings guidance by another eleven percent. 137 00:05:37,839 --> 00:05:40,039 Speaker 2: From twenty seven and a half mil down to just 138 00:05:40,120 --> 00:05:41,200 Speaker 2: twenty million dollars. 139 00:05:41,320 --> 00:05:44,599 Speaker 1: Neck minute monash IVF share price tumbled twelve percent. 140 00:05:44,760 --> 00:05:48,120 Speaker 2: It's no surprise neither clients or investors are very happy 141 00:05:48,160 --> 00:05:49,440 Speaker 2: with Monashchavif right now. 142 00:05:49,760 --> 00:05:50,840 Speaker 1: So what's the key learning here? 143 00:05:50,880 --> 00:05:54,000 Speaker 2: The industries that relate to life and death scenarios, trust 144 00:05:54,160 --> 00:05:55,719 Speaker 2: is its entire business model. 145 00:05:55,760 --> 00:05:58,200 Speaker 1: Once that trust is broken, the road to regaining it 146 00:05:58,240 --> 00:06:00,760 Speaker 1: can be long and slow and pretty expensive. 147 00:06:00,800 --> 00:06:03,960 Speaker 2: Remember Boeing b Man After two fatal seven three seven 148 00:06:04,040 --> 00:06:07,840 Speaker 2: Max crashes, the market wiped sixty percent of its peak value, 149 00:06:07,839 --> 00:06:12,040 Speaker 2: and after that airlines paused their orders, regulators grounded their fleets. 150 00:06:11,720 --> 00:06:15,080 Speaker 1: And even passengers were nervous getting onto a Boeing Max aircraft. 151 00:06:15,160 --> 00:06:18,120 Speaker 2: Even today, years on, it still hasn't returned to anything 152 00:06:18,200 --> 00:06:19,480 Speaker 2: close to its former heights. 153 00:06:19,480 --> 00:06:22,000 Speaker 1: So when a business is responsible for people's lives, it 154 00:06:22,240 --> 00:06:24,000 Speaker 1: just can't afford to make mistakes. 155 00:06:24,080 --> 00:06:26,599 Speaker 2: Yeah, so monashevv isn't just dealing with a bad quarter 156 00:06:26,720 --> 00:06:29,200 Speaker 2: and a bit of stiff competition. They're dealing with a 157 00:06:29,279 --> 00:06:30,200 Speaker 2: major loss. 158 00:06:29,920 --> 00:06:32,720 Speaker 1: Of trust, and rebuilding trust can be even tougher than 159 00:06:32,839 --> 00:06:34,760 Speaker 1: rebuilding revenue tame. 160 00:06:34,839 --> 00:06:37,520 Speaker 2: In this month's academy course, we go through buying property 161 00:06:37,520 --> 00:06:40,320 Speaker 2: one oh one house deposits and getting pre approved, everything 162 00:06:40,440 --> 00:06:41,800 Speaker 2: you need to know if you want to get into 163 00:06:41,839 --> 00:06:44,080 Speaker 2: the property market in the next three to six months. 164 00:06:44,120 --> 00:06:45,839 Speaker 2: To make sure to download the Flux app and check 165 00:06:45,839 --> 00:06:46,920 Speaker 2: out the Academy this month. 166 00:06:46,920 --> 00:06:49,200 Speaker 1: Thanks for listening and we'll see you on Wednesday.