Speaker 1: This is what the Flux. I'm Brett and I'm justin.
Speaker 1: It's Wednesday, the twenty third of October.
Speaker 2: Josie Boy gold bullions have hit a record price, cracking
Speaker 2: the four thousand dollars mark per bullion. Now we know
Speaker 2: that goal sees a spike when times are uncertain, and
Speaker 2: right now with a tight US election and uncertainty in
Speaker 2: the Middle East, we're talking more than a thirty percent
Speaker 2: jump this year a loan my friend Sam.
Speaker 1: Fancy winning one hundred and fifty bucks funded into your
Speaker 1: investment account? Wow? Well, this month, flex Academy is all
Speaker 1: that understanding the share market. We're partnering with Rays to
Speaker 1: give you the ultimate guide to improving your investing skills,
Speaker 1: and if you finish in the top three of the
Speaker 1: Flux Academy leader board this month, you'll win between fifty
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Speaker 1: To make sure to download the Flux app to check
Speaker 1: it out and win at money.
Speaker 2: Three victorious stories today, Juzzy Boy, let's do it for
Speaker 2: our first Ossie Tech giant wise Tech has seen it
Speaker 2: shares drop more than twenty two percent over the past
Speaker 2: few days, and its founder and CEO has been hit
Speaker 2: with major scandals.
Speaker 1: Not the ideal news you want to be releasing to
Speaker 1: the market, as wise Tech. So tell me what's going
Speaker 1: on here.
Speaker 2: Well, Judy wait. Wis Tech Global is a logistics software
Speaker 2: company founded in nineteen ninety four and be Man.
Speaker 1: It was actually a privately owned company for twenty two
Speaker 1: years before it went public in twenty sixteen.
Speaker 2: Now essentially, Wistech sell software to global supply chain and
Speaker 2: logistics company, or, as they like to.
Speaker 1: Say, we build technology that advances human potential.
Speaker 2: Now Wiseek has been a bit of an ASX Darling.
Speaker 2: It's share price had jumped more than twenty times since
Speaker 2: it's IPO.
Speaker 1: But now be man It's share price has dropped more
Speaker 1: than twenty two percent, or six billion dollars after its
Speaker 1: CEO and founder Richard White, is having a bitch of
Speaker 1: a moment right now, and not in a good way, yep.
Speaker 2: In short, he sold hundreds of millions of dollars worth
Speaker 2: of shares in wis Tech.
Speaker 1: He told investors that he sold the shares because there
Speaker 1: was demand from shareholders for more stock to.
Speaker 2: Be available, but it was actually sold to set all
Speaker 2: some legal cases and allegations in his personal life.
Speaker 1: Personal life, meat, business life, business life, meet personal.
Speaker 2: Life and now the Australian councilor Superanuation Investors has said
Speaker 2: that the allegations were a major concern for investors.
Speaker 1: But be Man White isn't just the CEO, He's the
Speaker 1: guy at Wistech.
Speaker 2: Yep, He's so central to the business that investors are
Speaker 2: now wondering if White goes down, does Wistech go down
Speaker 2: with him?
Speaker 1: Interesting? So what is the key learning here?
Speaker 2: Key person risk is when a business becomes heavily reliant
Speaker 2: on a key individual.
Speaker 1: It's kind of like having all of your eggs in
Speaker 1: one basket and.
Speaker 2: Then dropping that basket down a flight of stairs and
Speaker 2: be Man Well.
Speaker 1: Keyperson risk normally happens in smaller businesses. It can happen
Speaker 1: in larger businesses.
Speaker 2: Too, especially when the CEO or the founder is so
Speaker 2: tightly woven into the brand and the company's identity.
Speaker 1: You see, be Man White's personal issues have kind of
Speaker 1: bled into the professional world. And now wyse Tech is
Speaker 1: feeling the ripple effect.
Speaker 2: And so the Wystec board find themselves in a bit
Speaker 2: of a pickle where they are being pressured to do
Speaker 2: something and.
Speaker 1: Be man Wiseek is in the first major company to
Speaker 1: have a key person Richen What.
Speaker 2: Comes to mind for me, Josey Boy. Twenty seventeen, Uber's
Speaker 2: founder and then CEO, Travis Kalinnik, was forced to step
Speaker 2: down after a number of scandals.
Speaker 1: People were freaking out, wondering if Uber would even survive.
Speaker 2: A little spoiler alert for everyone at home.
Speaker 1: It did.
Speaker 2: It survived. Uber managed to go public in twenty nineteen.
Speaker 1: And at share prices increased by more than one hundred
Speaker 1: percent since listing to nearly one hundred and seventy billion
Speaker 1: US dollars.
Speaker 2: For our second story, Amazon, Google, and Microsoft have all
Speaker 2: invested in nuclear power plants as part of their goals
Speaker 2: to reduce carbon emissions.
Speaker 1: When I hear nuclear power plants, all I can think
Speaker 1: about is Homo Simpson munching on a donut in front
Speaker 1: of a glowing reactor. So don't you will?
Speaker 2: Okay, So juzzy boy. We know that big tech companies
Speaker 2: use a heap of power to run their services.
Speaker 1: Every time you browse the web, catch up on the
Speaker 1: latest TikTok trend, yeah or binge stream monsters right now?
Speaker 1: This is powered by data center. Now get this.
Speaker 2: Over the past few years, companies like Amazon and Google
Speaker 2: and Microsoft. They've made some pretty big promises, you.
Speaker 1: Know, pledging to be emissions free by twenty thirty.
Speaker 2: But then AI happened, and let me break some news
Speaker 2: to you, juzzy boy. AI loves to guzzle energy.
Speaker 1: Now the tech giants are realizing that going green just
Speaker 1: got a whole lot harder if they still want to
Speaker 1: scale the AI empire.
Speaker 2: So Amazon, Google, and Microsoft have all made a quick
Speaker 2: dash to go nuclear.
Speaker 1: Amazon has led a five hundred million dollar capital raise
Speaker 1: in a nuclear energy developer.
Speaker 2: Google has ordered nuclear reactors for its data centers from
Speaker 2: a nuclear energy startup, and Microsoft has agreed to a
Speaker 2: twenty year power purchasing deal to reopen a close nuclear
Speaker 2: power plants, all part of their ploys to have their
Speaker 2: AI cake.
Speaker 1: And eat it too. Yep, So what is the key
Speaker 1: learning here?
Speaker 2: Big tech is now warming up to nuclear power. Pun
Speaker 2: most certainly intended is seeb Man.
Speaker 1: An AI query consumes up to ten times the energy
Speaker 1: of a standard Google search.
Speaker 2: Yep, you deep dive into I Don't Know What Dogs
Speaker 2: dream About is more energy hungry than you might think.
Speaker 1: And Bman Goldman sax recons power demand from data centers
Speaker 1: will grow by one hundred and sixty percent by twenty thirty.
Speaker 2: So using wind and solar energy alone won't be enough
Speaker 2: to get these tech companies to become emission free.
Speaker 1: But and it's a big butt b man, nuclear plants
Speaker 1: do not come cheap.
Speaker 2: We're talking about one billion US dollars just for a
Speaker 2: small modular reactor and this slow to.
Speaker 1: Bit two plus there's a whole is it save conversation
Speaker 1: that always pops up. So with lots of talk about
Speaker 1: nuclear energy, only time will tell if it turns into action.
Speaker 1: For our third and final story, Quantus could be forced
Speaker 1: to show out hundreds of millions of dollars to seventeen
Speaker 1: hundred illegally sacked workers.
Speaker 2: Quantus' problems just keep on coming. What is the story here?
Speaker 1: Does he body be man? We know Quantus, Australia's national
Speaker 1: airline carrier bean Arounds is nineteen twenty two, in fact,
Speaker 1: the third oldest airline in the whole wide world.
Speaker 2: Now, over the pandemic, we did see Quantus go through
Speaker 2: non stop turbulence and we're not talking about the weather here.
Speaker 1: They suffered seven billion dollars in losses.
Speaker 2: Now, over the last few years there's been profit off
Speaker 2: ghost flights and ahrible c inquiry and new CEO mass layoffs.
Speaker 1: If that wasn't enough, b Man, Now Quantus is facing
Speaker 1: a major compensation bill.
Speaker 2: Why is that the case?
Speaker 1: Well, the federal court found that Quantus had illegally fired
Speaker 1: seventeen hundred workers in twenty twenty.
Speaker 2: They justified it as COVID related cost cutting measures at.
Speaker 1: The time, but once the pandemic ended, Quantus didn't replace
Speaker 1: the employees and authorities thenestion whether these layoffs were actually
Speaker 1: COVID related.
Speaker 2: And how much are we're talking about here in terms
Speaker 2: of dollary dues.
Speaker 1: Well, the exact amount of compensation isn't known yet, but
Speaker 1: it's expected to be worth over one hundred million dollars.
Speaker 1: It doesn't look like this federal court ruling is going
Speaker 1: to do Quantus any favors when it comes to attracting
Speaker 1: and retaining talent. So true, So what is the key
Speaker 1: learning here?
Speaker 2: When it comes to attracting talent? Employment scandals are the
Speaker 2: ultimate or red flag.
Speaker 1: Yeah.
Speaker 2: Now we know Quantus is trying to enter its transformation erar,
Speaker 2: but boy, oh boy, oh boy, does it have its
Speaker 2: work cut out for itself.
Speaker 1: Yeah? In fact, be man forty percent of businesses struggle
Speaker 1: to recruit good candidates, according to Hid magazine.
Speaker 2: And that challenge becomes even tougher for companies that have
Speaker 2: a public history of missing the mark as employees pluxdam.
Speaker 1: If you want to win one hundred and fifty bucks
Speaker 1: funded into your raised investment account, there is one place
Speaker 1: to go. It is straight to the Flex Academy this
Speaker 1: month to understand the share market. To make sure to
Speaker 1: download the Flux out to check it out.
Speaker 2: Thanks for listening and we'll see you on Friday.