1 00:00:05,200 --> 00:00:07,960 Speaker 1: This is what the Flux. I'm Brett and I'm justin. 2 00:00:08,160 --> 00:00:09,840 Speaker 1: It's Wednesday, the twenty third of October. 3 00:00:09,960 --> 00:00:13,480 Speaker 2: Josie Boy gold bullions have hit a record price, cracking 4 00:00:13,480 --> 00:00:17,119 Speaker 2: the four thousand dollars mark per bullion. Now we know 5 00:00:17,200 --> 00:00:19,520 Speaker 2: that goal sees a spike when times are uncertain, and 6 00:00:19,640 --> 00:00:22,600 Speaker 2: right now with a tight US election and uncertainty in 7 00:00:22,640 --> 00:00:24,960 Speaker 2: the Middle East, we're talking more than a thirty percent 8 00:00:25,200 --> 00:00:27,480 Speaker 2: jump this year a loan my friend Sam. 9 00:00:27,680 --> 00:00:30,320 Speaker 1: Fancy winning one hundred and fifty bucks funded into your 10 00:00:30,320 --> 00:00:32,919 Speaker 1: investment account? Wow? Well, this month, flex Academy is all 11 00:00:32,960 --> 00:00:35,640 Speaker 1: that understanding the share market. We're partnering with Rays to 12 00:00:35,640 --> 00:00:38,879 Speaker 1: give you the ultimate guide to improving your investing skills, 13 00:00:38,920 --> 00:00:40,479 Speaker 1: and if you finish in the top three of the 14 00:00:40,520 --> 00:00:43,200 Speaker 1: Flux Academy leader board this month, you'll win between fifty 15 00:00:43,200 --> 00:00:46,559 Speaker 1: bucks and one hundred bucks funded into your Ray's investing account. 16 00:00:46,560 --> 00:00:48,319 Speaker 1: To make sure to download the Flux app to check 17 00:00:48,360 --> 00:00:50,240 Speaker 1: it out and win at money. 18 00:00:50,000 --> 00:00:52,880 Speaker 2: Three victorious stories today, Juzzy Boy, let's do it for 19 00:00:52,960 --> 00:00:55,800 Speaker 2: our first Ossie Tech giant wise Tech has seen it 20 00:00:55,840 --> 00:00:58,680 Speaker 2: shares drop more than twenty two percent over the past 21 00:00:58,680 --> 00:01:01,120 Speaker 2: few days, and its founder and CEO has been hit 22 00:01:01,280 --> 00:01:02,840 Speaker 2: with major scandals. 23 00:01:02,880 --> 00:01:05,040 Speaker 1: Not the ideal news you want to be releasing to 24 00:01:05,120 --> 00:01:06,880 Speaker 1: the market, as wise Tech. So tell me what's going 25 00:01:06,880 --> 00:01:07,240 Speaker 1: on here. 26 00:01:07,120 --> 00:01:10,120 Speaker 2: Well, Judy wait. Wis Tech Global is a logistics software 27 00:01:10,160 --> 00:01:12,640 Speaker 2: company founded in nineteen ninety four and be Man. 28 00:01:12,640 --> 00:01:15,200 Speaker 1: It was actually a privately owned company for twenty two 29 00:01:15,319 --> 00:01:17,160 Speaker 1: years before it went public in twenty sixteen. 30 00:01:17,160 --> 00:01:20,880 Speaker 2: Now essentially, Wistech sell software to global supply chain and 31 00:01:21,000 --> 00:01:22,840 Speaker 2: logistics company, or, as they like to. 32 00:01:22,760 --> 00:01:25,880 Speaker 1: Say, we build technology that advances human potential. 33 00:01:25,959 --> 00:01:28,600 Speaker 2: Now Wiseek has been a bit of an ASX Darling. 34 00:01:28,720 --> 00:01:31,560 Speaker 2: It's share price had jumped more than twenty times since 35 00:01:31,560 --> 00:01:32,440 Speaker 2: it's IPO. 36 00:01:32,160 --> 00:01:33,880 Speaker 1: But now be man It's share price has dropped more 37 00:01:33,920 --> 00:01:36,880 Speaker 1: than twenty two percent, or six billion dollars after its 38 00:01:36,920 --> 00:01:39,360 Speaker 1: CEO and founder Richard White, is having a bitch of 39 00:01:39,400 --> 00:01:41,880 Speaker 1: a moment right now, and not in a good way, yep. 40 00:01:41,880 --> 00:01:44,039 Speaker 2: In short, he sold hundreds of millions of dollars worth 41 00:01:44,080 --> 00:01:45,160 Speaker 2: of shares in wis Tech. 42 00:01:45,240 --> 00:01:47,120 Speaker 1: He told investors that he sold the shares because there 43 00:01:47,160 --> 00:01:49,080 Speaker 1: was demand from shareholders for more stock to. 44 00:01:49,000 --> 00:01:52,040 Speaker 2: Be available, but it was actually sold to set all 45 00:01:52,080 --> 00:01:55,040 Speaker 2: some legal cases and allegations in his personal life. 46 00:01:54,760 --> 00:01:58,080 Speaker 1: Personal life, meat, business life, business life, meet personal. 47 00:01:57,760 --> 00:02:01,320 Speaker 2: Life and now the Australian councilor Superanuation Investors has said 48 00:02:01,320 --> 00:02:04,280 Speaker 2: that the allegations were a major concern for investors. 49 00:02:04,280 --> 00:02:06,840 Speaker 1: But be Man White isn't just the CEO, He's the 50 00:02:06,920 --> 00:02:07,960 Speaker 1: guy at Wistech. 51 00:02:08,040 --> 00:02:10,400 Speaker 2: Yep, He's so central to the business that investors are 52 00:02:10,400 --> 00:02:13,560 Speaker 2: now wondering if White goes down, does Wistech go down 53 00:02:13,639 --> 00:02:14,040 Speaker 2: with him? 54 00:02:14,040 --> 00:02:16,040 Speaker 1: Interesting? So what is the key learning here? 55 00:02:16,120 --> 00:02:18,800 Speaker 2: Key person risk is when a business becomes heavily reliant 56 00:02:18,800 --> 00:02:20,040 Speaker 2: on a key individual. 57 00:02:20,080 --> 00:02:21,800 Speaker 1: It's kind of like having all of your eggs in 58 00:02:21,880 --> 00:02:22,720 Speaker 1: one basket and. 59 00:02:22,639 --> 00:02:25,040 Speaker 2: Then dropping that basket down a flight of stairs and 60 00:02:25,080 --> 00:02:25,680 Speaker 2: be Man Well. 61 00:02:25,760 --> 00:02:29,160 Speaker 1: Keyperson risk normally happens in smaller businesses. It can happen 62 00:02:29,200 --> 00:02:30,480 Speaker 1: in larger businesses. 63 00:02:30,120 --> 00:02:32,400 Speaker 2: Too, especially when the CEO or the founder is so 64 00:02:32,520 --> 00:02:35,440 Speaker 2: tightly woven into the brand and the company's identity. 65 00:02:35,480 --> 00:02:37,840 Speaker 1: You see, be Man White's personal issues have kind of 66 00:02:37,880 --> 00:02:40,520 Speaker 1: bled into the professional world. And now wyse Tech is 67 00:02:40,520 --> 00:02:42,160 Speaker 1: feeling the ripple effect. 68 00:02:41,919 --> 00:02:44,560 Speaker 2: And so the Wystec board find themselves in a bit 69 00:02:44,680 --> 00:02:46,880 Speaker 2: of a pickle where they are being pressured to do 70 00:02:47,160 --> 00:02:48,320 Speaker 2: something and. 71 00:02:48,280 --> 00:02:50,520 Speaker 1: Be man Wiseek is in the first major company to 72 00:02:50,560 --> 00:02:51,919 Speaker 1: have a key person Richen What. 73 00:02:51,880 --> 00:02:54,359 Speaker 2: Comes to mind for me, Josey Boy. Twenty seventeen, Uber's 74 00:02:54,360 --> 00:02:57,240 Speaker 2: founder and then CEO, Travis Kalinnik, was forced to step 75 00:02:57,320 --> 00:02:59,320 Speaker 2: down after a number of scandals. 76 00:02:59,320 --> 00:03:02,320 Speaker 1: People were freaking out, wondering if Uber would even survive. 77 00:03:02,360 --> 00:03:04,079 Speaker 2: A little spoiler alert for everyone at home. 78 00:03:04,160 --> 00:03:04,519 Speaker 1: It did. 79 00:03:04,600 --> 00:03:07,560 Speaker 2: It survived. Uber managed to go public in twenty nineteen. 80 00:03:07,240 --> 00:03:09,359 Speaker 1: And at share prices increased by more than one hundred 81 00:03:09,360 --> 00:03:12,400 Speaker 1: percent since listing to nearly one hundred and seventy billion 82 00:03:12,520 --> 00:03:13,160 Speaker 1: US dollars. 83 00:03:13,280 --> 00:03:17,200 Speaker 2: For our second story, Amazon, Google, and Microsoft have all 84 00:03:17,200 --> 00:03:20,680 Speaker 2: invested in nuclear power plants as part of their goals 85 00:03:20,720 --> 00:03:22,360 Speaker 2: to reduce carbon emissions. 86 00:03:22,400 --> 00:03:24,560 Speaker 1: When I hear nuclear power plants, all I can think 87 00:03:24,560 --> 00:03:26,720 Speaker 1: about is Homo Simpson munching on a donut in front 88 00:03:26,760 --> 00:03:28,839 Speaker 1: of a glowing reactor. So don't you will? 89 00:03:29,160 --> 00:03:31,520 Speaker 2: Okay, So juzzy boy. We know that big tech companies 90 00:03:31,600 --> 00:03:33,600 Speaker 2: use a heap of power to run their services. 91 00:03:33,639 --> 00:03:35,400 Speaker 1: Every time you browse the web, catch up on the 92 00:03:35,480 --> 00:03:38,440 Speaker 1: latest TikTok trend, yeah or binge stream monsters right now? 93 00:03:38,640 --> 00:03:40,800 Speaker 1: This is powered by data center. Now get this. 94 00:03:40,840 --> 00:03:43,280 Speaker 2: Over the past few years, companies like Amazon and Google 95 00:03:43,280 --> 00:03:45,720 Speaker 2: and Microsoft. They've made some pretty big promises, you. 96 00:03:45,680 --> 00:03:48,360 Speaker 1: Know, pledging to be emissions free by twenty thirty. 97 00:03:48,440 --> 00:03:51,000 Speaker 2: But then AI happened, and let me break some news 98 00:03:51,000 --> 00:03:54,400 Speaker 2: to you, juzzy boy. AI loves to guzzle energy. 99 00:03:54,680 --> 00:03:57,400 Speaker 1: Now the tech giants are realizing that going green just 100 00:03:57,440 --> 00:03:59,560 Speaker 1: got a whole lot harder if they still want to 101 00:03:59,600 --> 00:04:00,880 Speaker 1: scale the AI empire. 102 00:04:00,960 --> 00:04:03,360 Speaker 2: So Amazon, Google, and Microsoft have all made a quick 103 00:04:03,440 --> 00:04:04,760 Speaker 2: dash to go nuclear. 104 00:04:04,800 --> 00:04:07,560 Speaker 1: Amazon has led a five hundred million dollar capital raise 105 00:04:07,600 --> 00:04:09,880 Speaker 1: in a nuclear energy developer. 106 00:04:09,480 --> 00:04:12,560 Speaker 2: Google has ordered nuclear reactors for its data centers from 107 00:04:12,640 --> 00:04:15,280 Speaker 2: a nuclear energy startup, and Microsoft has agreed to a 108 00:04:15,320 --> 00:04:19,599 Speaker 2: twenty year power purchasing deal to reopen a close nuclear 109 00:04:19,640 --> 00:04:21,720 Speaker 2: power plants, all part of their ploys to have their 110 00:04:21,760 --> 00:04:22,600 Speaker 2: AI cake. 111 00:04:22,480 --> 00:04:24,480 Speaker 1: And eat it too. Yep, So what is the key 112 00:04:24,560 --> 00:04:25,000 Speaker 1: learning here? 113 00:04:25,080 --> 00:04:28,520 Speaker 2: Big tech is now warming up to nuclear power. Pun 114 00:04:28,600 --> 00:04:30,440 Speaker 2: most certainly intended is seeb Man. 115 00:04:30,520 --> 00:04:33,480 Speaker 1: An AI query consumes up to ten times the energy 116 00:04:33,480 --> 00:04:34,839 Speaker 1: of a standard Google search. 117 00:04:34,880 --> 00:04:37,279 Speaker 2: Yep, you deep dive into I Don't Know What Dogs 118 00:04:37,400 --> 00:04:40,760 Speaker 2: dream About is more energy hungry than you might think. 119 00:04:40,800 --> 00:04:44,040 Speaker 1: And Bman Goldman sax recons power demand from data centers 120 00:04:44,080 --> 00:04:46,960 Speaker 1: will grow by one hundred and sixty percent by twenty thirty. 121 00:04:47,040 --> 00:04:49,760 Speaker 2: So using wind and solar energy alone won't be enough 122 00:04:49,760 --> 00:04:52,040 Speaker 2: to get these tech companies to become emission free. 123 00:04:52,120 --> 00:04:54,520 Speaker 1: But and it's a big butt b man, nuclear plants 124 00:04:54,640 --> 00:04:55,679 Speaker 1: do not come cheap. 125 00:04:55,680 --> 00:04:58,320 Speaker 2: We're talking about one billion US dollars just for a 126 00:04:58,320 --> 00:04:59,919 Speaker 2: small modular reactor and this slow to. 127 00:04:59,880 --> 00:05:02,640 Speaker 1: Bit two plus there's a whole is it save conversation 128 00:05:02,720 --> 00:05:04,479 Speaker 1: that always pops up. So with lots of talk about 129 00:05:04,600 --> 00:05:07,760 Speaker 1: nuclear energy, only time will tell if it turns into action. 130 00:05:08,120 --> 00:05:11,120 Speaker 1: For our third and final story, Quantus could be forced 131 00:05:11,160 --> 00:05:13,880 Speaker 1: to show out hundreds of millions of dollars to seventeen 132 00:05:13,960 --> 00:05:15,960 Speaker 1: hundred illegally sacked workers. 133 00:05:16,080 --> 00:05:19,360 Speaker 2: Quantus' problems just keep on coming. What is the story here? 134 00:05:19,400 --> 00:05:21,800 Speaker 1: Does he body be man? We know Quantus, Australia's national 135 00:05:21,800 --> 00:05:24,680 Speaker 1: airline carrier bean Arounds is nineteen twenty two, in fact, 136 00:05:24,720 --> 00:05:26,479 Speaker 1: the third oldest airline in the whole wide world. 137 00:05:26,480 --> 00:05:29,400 Speaker 2: Now, over the pandemic, we did see Quantus go through 138 00:05:29,640 --> 00:05:32,280 Speaker 2: non stop turbulence and we're not talking about the weather here. 139 00:05:32,320 --> 00:05:34,680 Speaker 1: They suffered seven billion dollars in losses. 140 00:05:34,839 --> 00:05:37,239 Speaker 2: Now, over the last few years there's been profit off 141 00:05:37,360 --> 00:05:41,560 Speaker 2: ghost flights and ahrible c inquiry and new CEO mass layoffs. 142 00:05:41,600 --> 00:05:44,120 Speaker 1: If that wasn't enough, b Man, Now Quantus is facing 143 00:05:44,160 --> 00:05:45,880 Speaker 1: a major compensation bill. 144 00:05:45,960 --> 00:05:47,000 Speaker 2: Why is that the case? 145 00:05:47,080 --> 00:05:49,920 Speaker 1: Well, the federal court found that Quantus had illegally fired 146 00:05:50,000 --> 00:05:51,919 Speaker 1: seventeen hundred workers in twenty twenty. 147 00:05:51,920 --> 00:05:55,400 Speaker 2: They justified it as COVID related cost cutting measures at. 148 00:05:55,360 --> 00:05:58,240 Speaker 1: The time, but once the pandemic ended, Quantus didn't replace 149 00:05:58,279 --> 00:06:01,680 Speaker 1: the employees and authorities thenestion whether these layoffs were actually 150 00:06:01,720 --> 00:06:02,400 Speaker 1: COVID related. 151 00:06:02,440 --> 00:06:03,920 Speaker 2: And how much are we're talking about here in terms 152 00:06:03,960 --> 00:06:04,719 Speaker 2: of dollary dues. 153 00:06:04,720 --> 00:06:07,560 Speaker 1: Well, the exact amount of compensation isn't known yet, but 154 00:06:07,680 --> 00:06:10,440 Speaker 1: it's expected to be worth over one hundred million dollars. 155 00:06:10,440 --> 00:06:12,400 Speaker 1: It doesn't look like this federal court ruling is going 156 00:06:12,480 --> 00:06:15,240 Speaker 1: to do Quantus any favors when it comes to attracting 157 00:06:15,240 --> 00:06:17,800 Speaker 1: and retaining talent. So true, So what is the key 158 00:06:17,839 --> 00:06:18,280 Speaker 1: learning here? 159 00:06:18,320 --> 00:06:20,919 Speaker 2: When it comes to attracting talent? Employment scandals are the 160 00:06:21,040 --> 00:06:22,120 Speaker 2: ultimate or red flag. 161 00:06:22,200 --> 00:06:22,400 Speaker 1: Yeah. 162 00:06:22,440 --> 00:06:25,200 Speaker 2: Now we know Quantus is trying to enter its transformation erar, 163 00:06:25,320 --> 00:06:27,920 Speaker 2: but boy, oh boy, oh boy, does it have its 164 00:06:27,960 --> 00:06:29,159 Speaker 2: work cut out for itself. 165 00:06:29,240 --> 00:06:31,920 Speaker 1: Yeah? In fact, be man forty percent of businesses struggle 166 00:06:31,960 --> 00:06:35,600 Speaker 1: to recruit good candidates, according to Hid magazine. 167 00:06:35,200 --> 00:06:37,440 Speaker 2: And that challenge becomes even tougher for companies that have 168 00:06:37,560 --> 00:06:40,560 Speaker 2: a public history of missing the mark as employees pluxdam. 169 00:06:40,640 --> 00:06:42,400 Speaker 1: If you want to win one hundred and fifty bucks 170 00:06:42,400 --> 00:06:45,200 Speaker 1: funded into your raised investment account, there is one place 171 00:06:45,200 --> 00:06:47,320 Speaker 1: to go. It is straight to the Flex Academy this 172 00:06:47,400 --> 00:06:49,240 Speaker 1: month to understand the share market. To make sure to 173 00:06:49,279 --> 00:06:50,880 Speaker 1: download the Flux out to check it out. 174 00:06:50,880 --> 00:06:53,560 Speaker 2: Thanks for listening and we'll see you on Friday.