1 00:00:05,200 --> 00:00:06,520 Speaker 1: This is what the Flux. 2 00:00:06,600 --> 00:00:09,119 Speaker 2: I'm justin and I'm harsh deep and it's Monday, the 3 00:00:09,160 --> 00:00:10,320 Speaker 2: sixteenth of September. 4 00:00:10,440 --> 00:00:13,000 Speaker 1: AHG. We know the times have been a little tougher 5 00:00:13,039 --> 00:00:16,200 Speaker 1: retailers recently, but in your report from KPMG warns that 6 00:00:16,280 --> 00:00:20,439 Speaker 1: it's not getting better anytime soon. Get this. KPMG reckons 7 00:00:20,440 --> 00:00:23,560 Speaker 1: the retail sector is in poor health and unlikely to 8 00:00:23,600 --> 00:00:26,720 Speaker 1: make a full economic recovery until late twenty twenty five, 9 00:00:26,880 --> 00:00:29,680 Speaker 1: particularly for discretionory items like clothing. 10 00:00:29,800 --> 00:00:31,520 Speaker 2: Ooh, sounds like they're still a long way to go. 11 00:00:32,120 --> 00:00:35,160 Speaker 2: Fluxpam ever asked yourself whether you can handle a major 12 00:00:35,200 --> 00:00:38,320 Speaker 2: unexpected expense like a car repair, or what about asking 13 00:00:38,360 --> 00:00:40,560 Speaker 2: yourself if you can enjoy it your life because of 14 00:00:40,600 --> 00:00:42,559 Speaker 2: how you're managing your money. These are some of the 15 00:00:42,560 --> 00:00:45,440 Speaker 2: prompting questions in our money check In. It's five questions 16 00:00:45,479 --> 00:00:47,479 Speaker 2: to reflect on where you're at and gives you a 17 00:00:47,520 --> 00:00:50,239 Speaker 2: financial wellbeing score at the end. Best of all, you 18 00:00:50,240 --> 00:00:52,760 Speaker 2: can track your progress each month, So download the Flux 19 00:00:52,760 --> 00:00:54,320 Speaker 2: app and check out the money check. 20 00:00:54,160 --> 00:00:56,800 Speaker 1: In three reflective stories. 21 00:00:56,800 --> 00:00:58,440 Speaker 2: Today, let's get into it. 22 00:00:58,520 --> 00:01:02,880 Speaker 1: For our first government wants to find social media platforms 23 00:01:02,960 --> 00:01:05,800 Speaker 1: up to five percent of their global revenue if they 24 00:01:05,800 --> 00:01:08,160 Speaker 1: don't stop the spread of misinformation. 25 00:01:08,560 --> 00:01:10,600 Speaker 2: Just waiting for the barbs to be thrown by Eon 26 00:01:10,680 --> 00:01:12,160 Speaker 2: musk here or what's going on? 27 00:01:12,319 --> 00:01:15,560 Speaker 1: Okay, SAHG, Meta, TikTok and X. They've got more than 28 00:01:15,560 --> 00:01:18,920 Speaker 1: four point seven billion monthly active users between. 29 00:01:18,640 --> 00:01:21,520 Speaker 2: Them, and while there's likely to be some overlap between 30 00:01:21,560 --> 00:01:24,080 Speaker 2: the users on the platforms, that's still a pretty big 31 00:01:24,120 --> 00:01:25,160 Speaker 2: chunk of the whole world. 32 00:01:25,240 --> 00:01:27,200 Speaker 1: And with the majority of the world on these platforms, 33 00:01:27,240 --> 00:01:30,800 Speaker 1: it also means a lot of opinions and agendas and information. 34 00:01:30,920 --> 00:01:33,119 Speaker 1: Oh yeah, and misinformation as well. 35 00:01:33,160 --> 00:01:36,320 Speaker 2: So back in September last year, the UK passed new 36 00:01:36,360 --> 00:01:39,680 Speaker 2: content moderation rules for online platforms like Meta and TikTok. 37 00:01:39,800 --> 00:01:42,679 Speaker 1: Yeah. It put the obligation on those platforms to remove 38 00:01:42,800 --> 00:01:45,600 Speaker 1: illegal content and misinformation. 39 00:01:45,000 --> 00:01:47,280 Speaker 2: And if they didn't, they could face penalties of up 40 00:01:47,319 --> 00:01:49,600 Speaker 2: to ten percent of global annual turnover. 41 00:01:49,840 --> 00:01:52,360 Speaker 1: Now Australia's thinking, hey, we could do that too. 42 00:01:52,600 --> 00:01:54,880 Speaker 2: Yeah. The Australian government has also said they want to 43 00:01:54,880 --> 00:01:57,080 Speaker 2: stop the spread of misinformation online. 44 00:01:56,800 --> 00:01:59,720 Speaker 1: And if this law passes, social media platforms in Australia 45 00:01:59,760 --> 00:02:02,440 Speaker 1: will be find up to five percent of their global 46 00:02:02,480 --> 00:02:04,559 Speaker 1: revenue if they fail to moderate and. 47 00:02:04,480 --> 00:02:07,400 Speaker 2: No surprises here. Eon Mask has shot back and called 48 00:02:07,440 --> 00:02:10,760 Speaker 2: the Australian government fascist for this proposed legislation. 49 00:02:11,120 --> 00:02:12,600 Speaker 1: So what is the key learning here? 50 00:02:12,720 --> 00:02:16,120 Speaker 2: Social media platforms are increasingly being held accountable for the 51 00:02:16,160 --> 00:02:17,440 Speaker 2: content they host. 52 00:02:17,400 --> 00:02:20,240 Speaker 1: Especially when that content can cause real world pa. 53 00:02:20,480 --> 00:02:23,240 Speaker 2: On the one hand, social media platforms want to promote 54 00:02:23,280 --> 00:02:25,920 Speaker 2: free speech and open dialogue between their users. 55 00:02:25,960 --> 00:02:29,920 Speaker 1: Hello Elomask, the free speech absolutist as he calls himself. 56 00:02:29,960 --> 00:02:32,400 Speaker 2: But on the other hand, they have a responsibility to 57 00:02:32,440 --> 00:02:35,119 Speaker 2: prevent the spread of harmful content and misinformation. 58 00:02:35,280 --> 00:02:37,760 Speaker 1: Yeah, especially when it comes to things like deep fake material. 59 00:02:37,919 --> 00:02:41,400 Speaker 2: Now, jazz x reported four point eight billion US dollars 60 00:02:41,440 --> 00:02:44,120 Speaker 2: in revenue in twenty twenty three, so five percent of 61 00:02:44,120 --> 00:02:46,520 Speaker 2: that would be two hundred and forty million dollars in 62 00:02:46,560 --> 00:02:48,480 Speaker 2: potential Australian finds alone. 63 00:02:48,560 --> 00:02:51,040 Speaker 1: Nar Actually, in the past, social media platforms have taken 64 00:02:51,040 --> 00:02:54,040 Speaker 1: a bit more of a laid back reactive approach. 65 00:02:53,639 --> 00:02:55,440 Speaker 2: Will take it down if someone reports it. 66 00:02:55,600 --> 00:02:57,880 Speaker 1: But with these wapin finds in the UK and now 67 00:02:57,960 --> 00:03:01,040 Speaker 1: potentially in Australia as well, forced them to be a 68 00:03:01,080 --> 00:03:03,440 Speaker 1: lot more proactive about stopping misinformation. 69 00:03:03,600 --> 00:03:07,000 Speaker 2: For our second story. Microsoft is cutting six hundred and 70 00:03:07,040 --> 00:03:10,560 Speaker 2: fifty jobs at its Xbox gaming division after its sixty 71 00:03:10,639 --> 00:03:14,120 Speaker 2: nine billion US dollar acquisition of Activision Blizzard's a. 72 00:03:14,120 --> 00:03:16,960 Speaker 1: Real time twister and another hit to the gaming industry. HG. 73 00:03:17,080 --> 00:03:18,239 Speaker 1: So tell me what's going on here? 74 00:03:18,280 --> 00:03:20,920 Speaker 2: Well, Jazz Microsoft, of course is a tech giant that 75 00:03:21,000 --> 00:03:23,239 Speaker 2: was founded almost fifty years ago by Bill Gates. 76 00:03:23,320 --> 00:03:25,960 Speaker 1: We know for its office products like Microsoft three, six, five, 77 00:03:26,000 --> 00:03:29,799 Speaker 1: Sweet or Windows who could forget clippy on word as well, But. 78 00:03:29,840 --> 00:03:33,720 Speaker 2: Microsoft also has a massive gaming division which includes Xbox 79 00:03:33,840 --> 00:03:37,160 Speaker 2: and as of October last year, Activision Blizzard, the makers 80 00:03:37,160 --> 00:03:38,240 Speaker 2: of Call of Duty. 81 00:03:38,000 --> 00:03:40,760 Speaker 1: And actually Xbox has its own gaming division. Activision has 82 00:03:40,800 --> 00:03:42,560 Speaker 1: its own gaming division, and there seems to be a 83 00:03:42,640 --> 00:03:44,400 Speaker 1: lot of crossover between the two. 84 00:03:44,640 --> 00:03:47,680 Speaker 2: So now Jazz Microsoft is laying off six hundred and 85 00:03:47,720 --> 00:03:51,400 Speaker 2: fifty workers from its Xbox division, aka three percent of 86 00:03:51,440 --> 00:03:52,640 Speaker 2: its total gaming stuff. 87 00:03:52,720 --> 00:03:56,680 Speaker 1: The idea is to align the two company's post acquisition. 88 00:03:56,200 --> 00:03:58,760 Speaker 2: But ultimately that means cleaning up the rest of its 89 00:03:58,800 --> 00:04:01,400 Speaker 2: gaming division to make room for its new entrant. 90 00:04:01,640 --> 00:04:03,080 Speaker 1: So what is the key learning here? 91 00:04:03,160 --> 00:04:06,160 Speaker 2: When a new tenant moves in the house gets a makeover. 92 00:04:06,000 --> 00:04:08,160 Speaker 1: We often hear the word synergies when it comes to 93 00:04:08,200 --> 00:04:09,440 Speaker 1: an acquisition. 94 00:04:09,000 --> 00:04:11,840 Speaker 2: You know, when the merged companies work together to maximize 95 00:04:11,840 --> 00:04:13,440 Speaker 2: productivity and reduce costs. 96 00:04:13,480 --> 00:04:17,080 Speaker 1: Definitely reduce costs. Think job carts, merging departments, or even 97 00:04:17,080 --> 00:04:19,479 Speaker 1: closing off underperforming parts of the business. 98 00:04:19,640 --> 00:04:22,200 Speaker 2: And just this isn't the first time Microsoft has made 99 00:04:22,240 --> 00:04:24,040 Speaker 2: redundancies since this acquisition. 100 00:04:24,240 --> 00:04:26,400 Speaker 1: In fact, a she, it is actually the third time. 101 00:04:26,600 --> 00:04:29,880 Speaker 2: Yeah, it laid off nineteen hundred staff in January. 102 00:04:29,440 --> 00:04:31,320 Speaker 1: Then it closed Force studios in May. 103 00:04:31,279 --> 00:04:33,360 Speaker 2: And now it's letting go of six hundred and fifty 104 00:04:33,360 --> 00:04:34,960 Speaker 2: people from its Xbox division. 105 00:04:35,040 --> 00:04:37,640 Speaker 1: And a she, Microsoft isn't the only company to trim 106 00:04:37,720 --> 00:04:40,240 Speaker 1: away excess costs after a major acquisition. Yeah. 107 00:04:40,360 --> 00:04:42,839 Speaker 2: Remember when Disney acquired twenty first century Fox. 108 00:04:42,960 --> 00:04:45,560 Speaker 1: I do, and just days after the acquisition, it announced 109 00:04:45,560 --> 00:04:47,920 Speaker 1: that Disney would lay off three thousand start. 110 00:04:47,720 --> 00:04:49,159 Speaker 2: Now we'll have to wait and see if this is 111 00:04:49,160 --> 00:04:52,160 Speaker 2: the last of Microsoft's gaming layoffs or if there's still 112 00:04:52,160 --> 00:04:52,720 Speaker 2: more to come. 113 00:04:53,160 --> 00:04:56,680 Speaker 1: For our third and final story, Timu's parent company has 114 00:04:56,680 --> 00:04:58,840 Speaker 1: seen its share price drop more than three percent last 115 00:04:58,839 --> 00:05:02,320 Speaker 1: Friday after the U yes proposed new tariffs on its products. 116 00:05:02,440 --> 00:05:04,760 Speaker 2: Looks like those team whose shopping holes might get a 117 00:05:04,800 --> 00:05:06,480 Speaker 2: little pricier, tell me more. 118 00:05:06,560 --> 00:05:09,080 Speaker 1: Okay, So, Team Who's become the new go to marketplace 119 00:05:09,080 --> 00:05:10,640 Speaker 1: for consumer goods and. 120 00:05:10,560 --> 00:05:13,680 Speaker 2: By goods we mean stuff so cheap it's practically free. 121 00:05:13,880 --> 00:05:16,520 Speaker 1: And actually these goods are mostly shipped to consumers around 122 00:05:16,560 --> 00:05:18,200 Speaker 1: the world directly from China. 123 00:05:18,320 --> 00:05:21,359 Speaker 2: Team is owned by a Chinese company, Pindor Door, which 124 00:05:21,480 --> 00:05:22,719 Speaker 2: is listed on the Nasdaq, and. 125 00:05:22,720 --> 00:05:25,040 Speaker 1: Although tim Wu only launched in twenty twenty two, it's 126 00:05:25,080 --> 00:05:27,640 Speaker 1: believed to have over one hundred and sixty seven million 127 00:05:27,920 --> 00:05:29,040 Speaker 1: monthly active users. 128 00:05:29,200 --> 00:05:32,080 Speaker 2: The app feels like Amazon had a child with a casino. 129 00:05:32,200 --> 00:05:34,560 Speaker 1: But here's where it gets juicy, because up until now, 130 00:05:34,600 --> 00:05:37,119 Speaker 1: any products under eight hundred dollars coming into the US 131 00:05:37,240 --> 00:05:40,400 Speaker 1: have been juicy free thanks to the Deminimus rule. 132 00:05:40,480 --> 00:05:43,279 Speaker 2: This little loophole has been a gold mine for fast 133 00:05:43,279 --> 00:05:45,240 Speaker 2: fashion empires like Sheen and Timu. 134 00:05:45,320 --> 00:05:47,960 Speaker 1: But late last week, the US government proposed new rules 135 00:05:48,000 --> 00:05:51,000 Speaker 1: that would force fast fashion retailers to pay tariffs on 136 00:05:51,040 --> 00:05:52,120 Speaker 1: these products, and. 137 00:05:52,080 --> 00:05:54,440 Speaker 2: As a result, the share price of pin Door Door 138 00:05:54,440 --> 00:05:56,840 Speaker 2: Team Who's owner, dropped more than three percent. 139 00:05:56,960 --> 00:05:59,360 Speaker 1: On the other hand, the share price of Etsy jumped 140 00:05:59,360 --> 00:05:59,839 Speaker 1: more than. 141 00:05:59,680 --> 00:06:03,599 Speaker 2: Five Nothing like a bit of trade protectionism, So what 142 00:06:03,839 --> 00:06:06,279 Speaker 2: is the key learning here? Trade protectionism is where a 143 00:06:06,360 --> 00:06:10,279 Speaker 2: country looks to protect its domestic industries by restricting imports 144 00:06:10,320 --> 00:06:11,479 Speaker 2: from other countries, and. 145 00:06:11,560 --> 00:06:14,600 Speaker 1: Ag tariffs is one of the most used strategies of 146 00:06:14,720 --> 00:06:15,720 Speaker 1: trade protectionism. 147 00:06:15,800 --> 00:06:19,400 Speaker 2: You see by making imported goods more expensive. Tariffs can 148 00:06:19,400 --> 00:06:22,840 Speaker 2: help level the playing field for local producers, but this. 149 00:06:22,839 --> 00:06:25,680 Speaker 1: Can also lead to higher prices for consumers and. 150 00:06:25,760 --> 00:06:30,279 Speaker 2: Might even lead to some global drama aka trade retaliation. 151 00:06:30,120 --> 00:06:32,520 Speaker 1: And China might have a few moves of its own 152 00:06:32,560 --> 00:06:36,080 Speaker 1: sleeve as well. Fluxda every single month, the Flux Money 153 00:06:36,160 --> 00:06:38,200 Speaker 1: Checking is the perfect way to check in with yourself. 154 00:06:38,240 --> 00:06:40,320 Speaker 1: See how you're tracking after yourself some of the key 155 00:06:40,360 --> 00:06:42,279 Speaker 1: questions around finance. If you want to check it out, 156 00:06:42,360 --> 00:06:44,599 Speaker 1: make sure you track your progress in the Flux app. 157 00:06:44,640 --> 00:06:47,360 Speaker 2: Thanks for listening and we'll see you on Wednesday.