1 00:00:05,240 --> 00:00:06,640 Speaker 1: This is what no Flux. 2 00:00:06,680 --> 00:00:09,320 Speaker 2: I'm Brett and I'm justin and it's Wednesday, the eleventh 3 00:00:09,320 --> 00:00:09,879 Speaker 2: of December. 4 00:00:09,960 --> 00:00:13,000 Speaker 1: Juzzy Boy AMZ Bank has announced a new CEO will 5 00:00:13,039 --> 00:00:16,239 Speaker 1: replace Shane Elliott after nine years, and interestingly, the a 6 00:00:16,480 --> 00:00:19,160 Speaker 1: Z chair has compared this new CEO to picking up 7 00:00:19,200 --> 00:00:22,400 Speaker 1: a star soccer player on the transfer market. Apparently he's 8 00:00:22,440 --> 00:00:25,240 Speaker 1: worked in Europe, Latin America and Asia, so he certainly 9 00:00:25,280 --> 00:00:27,360 Speaker 1: traveled the world like a sta footballer. Now he's just 10 00:00:27,360 --> 00:00:29,720 Speaker 1: got to turn his footwork into some winning goals for 11 00:00:29,760 --> 00:00:31,160 Speaker 1: a Z's a bottom. 12 00:00:30,800 --> 00:00:32,760 Speaker 2: Line Ronaldo two point zero they call him. 13 00:00:32,840 --> 00:00:33,120 Speaker 1: Uh huh. 14 00:00:33,200 --> 00:00:36,360 Speaker 2: Now, Flexam, your credit scord can significantly impact your chance 15 00:00:36,440 --> 00:00:39,040 Speaker 2: of taking out a loan, even getting a mobile phone plan. 16 00:00:39,080 --> 00:00:40,400 Speaker 2: And if you don't know what your credit scorre is, 17 00:00:40,440 --> 00:00:42,520 Speaker 2: there is only one place to go. It is snack 18 00:00:42,600 --> 00:00:44,560 Speaker 2: Bang in the Flux app, So make sure to download 19 00:00:44,560 --> 00:00:45,960 Speaker 2: the app and check out your credit score. 20 00:00:46,000 --> 00:00:48,839 Speaker 1: This month three colorful stories Today Juzzy Boy, Let's do 21 00:00:48,880 --> 00:00:51,519 Speaker 1: it for our first. Woolworts has finally come to an 22 00:00:51,560 --> 00:00:54,960 Speaker 1: agreement with its warehouse staff after a seventeen day strike 23 00:00:55,080 --> 00:00:58,680 Speaker 1: which left stores empty and cost them millions in sales. 24 00:00:58,760 --> 00:01:01,480 Speaker 2: This is reminding me of Covidos all over again. Be manned, 25 00:01:01,520 --> 00:01:02,639 Speaker 2: So tell me what's going on here. 26 00:01:02,640 --> 00:01:05,520 Speaker 1: Well, Juzzy Boy, we know Woolworth's as the largest supermarket 27 00:01:05,560 --> 00:01:08,160 Speaker 1: group in Australia with thirty seven percent market share. 28 00:01:08,200 --> 00:01:10,920 Speaker 2: They're well ahead of their bitter archrival Coals, who has 29 00:01:11,000 --> 00:01:12,200 Speaker 2: twenty eight percent market. 30 00:01:11,920 --> 00:01:14,720 Speaker 1: Share, and it's growing our rival Audi, but the man. 31 00:01:14,760 --> 00:01:17,880 Speaker 2: A few weeks ago, fifteen hundred woolworth staff went on strike. 32 00:01:17,680 --> 00:01:20,319 Speaker 1: And this led to seventeen days of industrial action at 33 00:01:20,319 --> 00:01:23,319 Speaker 1: four distribution centers in Victoria and New South Wales. 34 00:01:23,360 --> 00:01:25,559 Speaker 2: That means no shelves in the warehouse were getting packed 35 00:01:25,560 --> 00:01:28,279 Speaker 2: and no shelves were packed onto trucks. The goat stores 36 00:01:28,280 --> 00:01:31,440 Speaker 2: and as a result, Juzzy Boy supermarket shelves were left empty. 37 00:01:31,480 --> 00:01:34,320 Speaker 2: And not only supermarket shells, liquor stores like Dan Murphy's 38 00:01:34,360 --> 00:01:35,840 Speaker 2: also had their shelves empty too. 39 00:01:35,959 --> 00:01:38,440 Speaker 1: But now Woolies has finally come to an agreement with 40 00:01:38,480 --> 00:01:39,399 Speaker 1: their warehouse staff. 41 00:01:39,400 --> 00:01:42,480 Speaker 2: But be man They've warned the seventeen day hiatus without 42 00:01:42,520 --> 00:01:44,640 Speaker 2: stocked shells has cost them a mozza. 43 00:01:44,880 --> 00:01:47,440 Speaker 1: We are talking one hundred and forty million dollars in 44 00:01:47,520 --> 00:01:48,440 Speaker 1: lost revenue and. 45 00:01:48,400 --> 00:01:52,080 Speaker 2: It's expected to hurt their expected earnings by sixty million baccarinas. 46 00:01:52,120 --> 00:01:54,320 Speaker 1: And the bigger winner here, of course is the little 47 00:01:54,320 --> 00:01:56,200 Speaker 1: red quote themselves coals. 48 00:01:56,280 --> 00:01:57,720 Speaker 2: So what is the key learning here? 49 00:01:57,840 --> 00:02:00,920 Speaker 1: Forcing customers to change their regular habits is like gifting 50 00:02:00,920 --> 00:02:02,600 Speaker 1: an own goal to your competitor. 51 00:02:02,720 --> 00:02:05,440 Speaker 2: Very soccer theme today, you see a man. Many Ossies 52 00:02:05,480 --> 00:02:07,320 Speaker 2: are loyal to their supermarket. 53 00:02:06,880 --> 00:02:09,040 Speaker 1: Go Big Red or Go Fresh food Cream. 54 00:02:09,240 --> 00:02:11,480 Speaker 2: In fact, be man. A recent survey show sixty two 55 00:02:11,480 --> 00:02:13,639 Speaker 2: percent of shoppers who shopped at Woolies in month one 56 00:02:13,720 --> 00:02:16,440 Speaker 2: were still shopping with Woolly six months later for their 57 00:02:16,440 --> 00:02:16,880 Speaker 2: main shop. 58 00:02:17,000 --> 00:02:20,080 Speaker 1: That is according to research think tank E sixty one. 59 00:02:20,040 --> 00:02:22,960 Speaker 2: And the Man. Interestingly, price wasn't the biggest influence. 60 00:02:23,000 --> 00:02:25,080 Speaker 1: Nope, it was all about the convenience as well as 61 00:02:25,200 --> 00:02:27,520 Speaker 1: unconscious habit of sticking to what you know you know 62 00:02:27,639 --> 00:02:30,239 Speaker 1: Breddy's in L three Deli section is back, lair h 63 00:02:30,360 --> 00:02:32,600 Speaker 1: and Josi wait. Woolies has disrupted the habits of their 64 00:02:32,639 --> 00:02:33,840 Speaker 1: loyal customers. 65 00:02:33,400 --> 00:02:35,520 Speaker 2: Which can not only prompt them to change now, but 66 00:02:35,600 --> 00:02:37,360 Speaker 2: adjust their habits into the future. 67 00:02:37,480 --> 00:02:40,160 Speaker 1: In fact, the unstocked shelves at Woolies is expected to 68 00:02:40,240 --> 00:02:43,639 Speaker 1: increase Coals's earnings by two point three percent this financial year, 69 00:02:43,680 --> 00:02:44,799 Speaker 1: according to Baron Joey. 70 00:02:44,840 --> 00:02:47,000 Speaker 2: So Woolies will be hoping that this drama is behind 71 00:02:47,040 --> 00:02:49,799 Speaker 2: them so they can focus on winning back their habit 72 00:02:49,880 --> 00:02:53,800 Speaker 2: forming customers. For our second story, China has opened an 73 00:02:53,840 --> 00:02:58,040 Speaker 2: antitrust investigation into US chip maker in Nvidia, the world's 74 00:02:58,080 --> 00:03:01,320 Speaker 2: largest provider of AI pros. Really heading up in the 75 00:03:01,360 --> 00:03:03,000 Speaker 2: AARs b man, So tell me. 76 00:03:03,000 --> 00:03:06,000 Speaker 1: More some background, Josie boy. The US government knows just 77 00:03:06,080 --> 00:03:09,680 Speaker 1: how important it is for US companies to produce computer chips. 78 00:03:09,720 --> 00:03:12,799 Speaker 2: Yep. The Biden administration has pumped billions of dollars into 79 00:03:12,880 --> 00:03:15,399 Speaker 2: US companies like Intel because they want to boost local 80 00:03:15,400 --> 00:03:19,200 Speaker 2: production of chippy's and reduce America's reliance on China for chippies. 81 00:03:19,240 --> 00:03:21,720 Speaker 2: But now be man in VideA, the American chip maker 82 00:03:21,840 --> 00:03:25,359 Speaker 2: is facing anti trust investigation from China, and of course 83 00:03:25,560 --> 00:03:28,560 Speaker 2: this means things are spicing up between the US and China. 84 00:03:28,639 --> 00:03:31,079 Speaker 2: It all starts from twenty nineteen when in Video acquired 85 00:03:31,080 --> 00:03:34,280 Speaker 2: in an Israeli networking company called mellanox a nearly seven 86 00:03:34,360 --> 00:03:35,320 Speaker 2: billion US dollars. 87 00:03:35,320 --> 00:03:37,880 Speaker 1: And here's where things get juicy. The Chinese government believes 88 00:03:37,960 --> 00:03:41,480 Speaker 1: this acquisition could violate China's anti monopoly laws. 89 00:03:41,560 --> 00:03:43,800 Speaker 2: Next minute, in Vidia share price was down two point 90 00:03:43,880 --> 00:03:44,480 Speaker 2: six percent. 91 00:03:44,720 --> 00:03:47,080 Speaker 1: And this is just the latest escalation of a real 92 00:03:47,160 --> 00:03:49,680 Speaker 1: growing battle for AI dominance between the US and China. 93 00:03:49,800 --> 00:03:51,080 Speaker 1: So what is the key learning here? 94 00:03:51,240 --> 00:03:54,080 Speaker 2: Those who control the best AI can control the world. 95 00:03:54,160 --> 00:03:56,080 Speaker 1: Think about it in many ways, in video is the 96 00:03:56,160 --> 00:03:58,120 Speaker 1: face of the AI tech revolution. 97 00:03:58,440 --> 00:04:01,320 Speaker 2: Get this. In Vidia currently holds between seventy and ninety 98 00:04:01,360 --> 00:04:03,480 Speaker 2: five percent of the market share for AI. 99 00:04:03,320 --> 00:04:06,640 Speaker 1: Chips, so hurting in Vidia could harm its ambitions to 100 00:04:06,680 --> 00:04:08,640 Speaker 1: continue to power AI around the world. 101 00:04:08,720 --> 00:04:10,760 Speaker 2: And that's exactly what China is doing. 102 00:04:10,880 --> 00:04:13,360 Speaker 1: See, the US is pretty concerned that China could use 103 00:04:13,400 --> 00:04:15,760 Speaker 1: AI to gain a military advantage over the US. 104 00:04:15,800 --> 00:04:18,599 Speaker 2: In fact, recently the US imposed restrictions on the sale 105 00:04:18,640 --> 00:04:20,000 Speaker 2: of AI chips to China. 106 00:04:19,880 --> 00:04:23,080 Speaker 1: So this move by China could be seen as a retaliation. 107 00:04:22,600 --> 00:04:24,960 Speaker 2: Either way, Dann. What's quite hilarious here is that the 108 00:04:25,080 --> 00:04:28,720 Speaker 2: US itself is also reportedly investigating in VideA of the 109 00:04:28,760 --> 00:04:32,800 Speaker 2: potential antitrust violation. For our third and final story, the 110 00:04:32,880 --> 00:04:35,800 Speaker 2: Reserve Bank of Australia has kept cash rates on hold 111 00:04:35,880 --> 00:04:37,960 Speaker 2: for the ninth time in a row in their final 112 00:04:37,960 --> 00:04:40,520 Speaker 2: meeting for twenty twenty four, the RBA must have some 113 00:04:40,640 --> 00:04:43,800 Speaker 2: emotional attachments to the number four point three five so 114 00:04:43,920 --> 00:04:44,720 Speaker 2: tell me more well. 115 00:04:44,760 --> 00:04:47,960 Speaker 1: The Reserve Bank of Australia is obviously Australia's central bank. 116 00:04:48,240 --> 00:04:51,479 Speaker 2: They're roles pretty much ensure the economic prosperity of the 117 00:04:51,480 --> 00:04:51,920 Speaker 2: people of. 118 00:04:51,839 --> 00:04:55,280 Speaker 1: Australia, to ensure the stability of the Australian currency. 119 00:04:55,000 --> 00:04:57,719 Speaker 2: And to maintain full employment in Australia. 120 00:04:57,800 --> 00:05:00,400 Speaker 1: And Jazi Boy, the most powerful lever that the RBA 121 00:05:00,520 --> 00:05:03,000 Speaker 1: has is its ability to move the cash rate up 122 00:05:03,240 --> 00:05:04,720 Speaker 1: or down down and the man. 123 00:05:04,800 --> 00:05:07,080 Speaker 2: After cranking up the cash rate from point one percent 124 00:05:07,120 --> 00:05:09,760 Speaker 2: to four point three five percent in less than eighteen months, 125 00:05:09,800 --> 00:05:12,360 Speaker 2: the RBA is now having a bit of a breather, yep. 126 00:05:12,400 --> 00:05:14,640 Speaker 1: In its final meeting of twenty twenty four, the RBA 127 00:05:14,720 --> 00:05:16,960 Speaker 1: has decided to pause the cash rate once again at 128 00:05:16,960 --> 00:05:18,240 Speaker 1: four point three five percent. 129 00:05:18,320 --> 00:05:19,880 Speaker 2: This is the ninth month in a row that the 130 00:05:19,960 --> 00:05:21,080 Speaker 2: rates have been paused. 131 00:05:21,160 --> 00:05:23,960 Speaker 1: And Jessy Boy, While the RBA is responsible for ensuring 132 00:05:24,080 --> 00:05:27,120 Speaker 1: full employment in the economy, they currently reckon that employment 133 00:05:27,200 --> 00:05:28,160 Speaker 1: is too hot right now. 134 00:05:28,200 --> 00:05:29,560 Speaker 2: So what is the key learning here? 135 00:05:29,680 --> 00:05:32,880 Speaker 1: While low unemployment is generally positive for an economy. It's 136 00:05:32,920 --> 00:05:36,520 Speaker 1: actually possible for employment to be over full. Yeah, sometimes 137 00:05:36,520 --> 00:05:39,520 Speaker 1: having too many people working can cause problems as well, 138 00:05:39,600 --> 00:05:41,600 Speaker 1: and this is called over full employment. 139 00:05:41,680 --> 00:05:43,920 Speaker 2: Let's play this outbe man. When nearly everyone in the 140 00:05:43,920 --> 00:05:47,280 Speaker 2: whole country has a job, businesses might struggle to find workers. 141 00:05:47,000 --> 00:05:48,000 Speaker 1: And then to attract staff. 142 00:05:48,040 --> 00:05:49,880 Speaker 2: They are for high wages, and the catch is that 143 00:05:49,880 --> 00:05:52,479 Speaker 2: the business has often raised their prices to cover those 144 00:05:52,520 --> 00:05:55,760 Speaker 2: extra costs, which can make everything more expensive, and this 145 00:05:55,880 --> 00:05:57,720 Speaker 2: is when inflation kicks in again. 146 00:05:57,920 --> 00:06:00,479 Speaker 1: The idea is to find a balance lots of but 147 00:06:00,560 --> 00:06:02,960 Speaker 1: not so many that inflation spirals out of control. 148 00:06:03,040 --> 00:06:05,760 Speaker 2: It's a pretty tricky juggling act, and the RBA doesn't 149 00:06:05,800 --> 00:06:08,360 Speaker 2: reckon that the economy's healthy enough right now to drop 150 00:06:08,400 --> 00:06:10,120 Speaker 2: the cash rate. The man I applied for a new 151 00:06:10,120 --> 00:06:12,400 Speaker 2: credit card last month and my credits cored dropped by 152 00:06:12,440 --> 00:06:15,839 Speaker 2: more than fourteen points. Wow, could not leave that personally 153 00:06:15,880 --> 00:06:17,120 Speaker 2: now fluxed down. If you want to see if your 154 00:06:17,120 --> 00:06:18,920 Speaker 2: credit score went up, if it went down, or just 155 00:06:18,960 --> 00:06:20,960 Speaker 2: stayed the same, there is only one place to go. 156 00:06:21,080 --> 00:06:23,159 Speaker 2: It's in the flux app. Make sure to check it 157 00:06:23,200 --> 00:06:26,240 Speaker 2: out to see how your financial behaviors might be impacting 158 00:06:26,279 --> 00:06:27,000 Speaker 2: your credit score. 159 00:06:27,080 --> 00:06:29,760 Speaker 1: Thanks for listening, and we'll see you on Friday.