1 00:00:05,160 --> 00:00:08,039 Speaker 1: This is what the Flux. I'm Brett, I'm justin and 2 00:00:08,039 --> 00:00:10,040 Speaker 1: it's Friday, the twenty third of a Josey Boy. 3 00:00:10,080 --> 00:00:12,520 Speaker 2: Klina is gearing up to go public and its CEO 4 00:00:12,640 --> 00:00:15,360 Speaker 2: just announced four straight quarters of peril profit. Except it 5 00:00:15,400 --> 00:00:16,960 Speaker 2: wasn't the real CEO delivering the news. 6 00:00:17,000 --> 00:00:18,440 Speaker 1: Was his AI clone. Yep. 7 00:00:18,480 --> 00:00:21,360 Speaker 2: Klana's trying to sell itself as an AI first company now, 8 00:00:21,680 --> 00:00:24,840 Speaker 2: but Juzy Boy, no matter how a lifelike voice slapping 9 00:00:24,880 --> 00:00:27,440 Speaker 2: AI on a buy now polator business doesn't make it 10 00:00:27,480 --> 00:00:28,000 Speaker 2: one that. 11 00:00:28,080 --> 00:00:29,880 Speaker 1: Is true Fox. And if you want to kick off 12 00:00:29,920 --> 00:00:32,839 Speaker 1: the weekend on a high, fifty bucks in your pocket, 13 00:00:32,920 --> 00:00:35,080 Speaker 1: it's always in the Flux out on a Friday with 14 00:00:35,120 --> 00:00:37,199 Speaker 1: our weekly game Quick Sticks. All you've got to do 15 00:00:37,400 --> 00:00:39,519 Speaker 1: is turn your notifications on in the Flux app. And 16 00:00:39,560 --> 00:00:41,720 Speaker 1: if you're the first to answer three business or finance 17 00:00:41,800 --> 00:00:44,360 Speaker 1: questions correctly, that fifty bucks is all yours to make 18 00:00:44,400 --> 00:00:46,920 Speaker 1: sure to download the app and turn your notifications on today. 19 00:00:47,159 --> 00:00:50,720 Speaker 2: Three fantastic stories today, Juzzi Boy, let's do it for 20 00:00:50,760 --> 00:00:53,800 Speaker 2: our first West PAX new CEO is cutting five percent 21 00:00:53,840 --> 00:00:57,760 Speaker 2: of its workforce to reduce costs after disappointing investors with 22 00:00:57,960 --> 00:01:00,240 Speaker 2: first half year results. 23 00:00:59,680 --> 00:01:02,040 Speaker 1: Corporate makeoverseason at the Bank b Man. So what is 24 00:01:02,080 --> 00:01:02,480 Speaker 1: the story? 25 00:01:02,560 --> 00:01:05,080 Speaker 2: Well, Westpac was founded in eighteen seventeen and is the 26 00:01:05,160 --> 00:01:07,400 Speaker 2: third largest of Australia's big four banks. 27 00:01:07,400 --> 00:01:10,400 Speaker 1: And despite different brand names, Westpac also owns Bank of 28 00:01:10,440 --> 00:01:12,760 Speaker 1: Melbourne's and George Bank and Bank SA. 29 00:01:12,920 --> 00:01:17,200 Speaker 2: So together Westpac supports close to thirteen million customers. 30 00:01:16,840 --> 00:01:19,160 Speaker 1: Of bed But despite its size, b Man it was 31 00:01:19,200 --> 00:01:21,679 Speaker 1: the slowest kid in the banking class when it comes 32 00:01:21,720 --> 00:01:24,240 Speaker 1: to costs. For a number of years, Westpack has had 33 00:01:24,280 --> 00:01:27,000 Speaker 1: the highest cost ratio among the four major banks. In 34 00:01:27,000 --> 00:01:29,440 Speaker 1: other words, Westpac needs to spend more in order to 35 00:01:29,440 --> 00:01:31,440 Speaker 1: earn the same amount of revenue as other banks. 36 00:01:31,560 --> 00:01:34,240 Speaker 2: So Josey Boy, Westpac's new CEO, has announced plans to 37 00:01:34,240 --> 00:01:36,600 Speaker 2: cut another five percent of the workforce, which is about 38 00:01:36,640 --> 00:01:38,240 Speaker 2: seventeen hundred jobs across the. 39 00:01:38,200 --> 00:01:40,120 Speaker 1: Bank and be Man. That is in addition to the 40 00:01:40,160 --> 00:01:42,800 Speaker 1: over nine hundred jobs that were already cut last year. 41 00:01:42,880 --> 00:01:45,520 Speaker 2: Yep, it's the biggest redundancy Westpac has seen in the 42 00:01:45,600 --> 00:01:46,880 Speaker 2: last decade. 43 00:01:46,640 --> 00:01:49,480 Speaker 1: Or as Westpac likes to call it, a business simplification 44 00:01:49,600 --> 00:01:54,400 Speaker 1: program with the chirpy name unite so inspiring. So now 45 00:01:54,440 --> 00:01:56,640 Speaker 1: b Man the new CEO, Anthony Mila, is putting his 46 00:01:56,720 --> 00:01:59,000 Speaker 1: foot on the gas to deliver the cost savings he 47 00:01:59,080 --> 00:02:01,480 Speaker 1: promised investors. So what is the key learning here? 48 00:02:01,520 --> 00:02:05,480 Speaker 2: When a new CEO steps in, big big changes usually 49 00:02:05,520 --> 00:02:08,160 Speaker 2: are not far behind. A fresh leader brings their own vision, 50 00:02:08,360 --> 00:02:11,040 Speaker 2: so that often means reshaping the business to fit the 51 00:02:11,080 --> 00:02:13,440 Speaker 2: new strategy, and when it's a public listed company, the 52 00:02:13,480 --> 00:02:16,480 Speaker 2: pressure is dialed up to one hundred in this is 53 00:02:16,480 --> 00:02:16,720 Speaker 2: what I. 54 00:02:16,720 --> 00:02:19,680 Speaker 1: See action, not just talk. So new CEOs tend to 55 00:02:19,720 --> 00:02:23,359 Speaker 1: move pretty fast, changing the EXAC team, shifting priorities, or 56 00:02:23,400 --> 00:02:26,200 Speaker 1: in Westpac's case, cutting costs through redundancy. Yeah, be man, 57 00:02:26,200 --> 00:02:27,920 Speaker 1: and we've seen this happen before. 58 00:02:28,040 --> 00:02:31,040 Speaker 2: Back in twenty twenty three, Quantus swapped out their CEO 59 00:02:31,280 --> 00:02:34,480 Speaker 2: after coppying a ton of heat from customers and investors. 60 00:02:34,080 --> 00:02:36,359 Speaker 1: Yep, and then new CEO made some pretty big changes 61 00:02:36,400 --> 00:02:39,080 Speaker 1: to the EXAC team and reset the business direction to 62 00:02:39,160 --> 00:02:40,680 Speaker 1: recover from that lost trust. 63 00:02:40,800 --> 00:02:43,160 Speaker 2: Since then, profits have bounced back to better than pre 64 00:02:43,240 --> 00:02:47,120 Speaker 2: pandemic levels and it's invested in extra eighty million customer service. 65 00:02:47,240 --> 00:02:49,360 Speaker 1: So be man. Only time will tell whether these are 66 00:02:49,400 --> 00:02:51,960 Speaker 1: the last big cuts at Westpac or a sign of 67 00:02:52,000 --> 00:02:54,800 Speaker 1: ongoing cuts to come for our second story. 68 00:02:55,080 --> 00:02:59,040 Speaker 2: Main Farmer shares tumble thirty percent after its potential buyer 69 00:02:59,240 --> 00:03:02,280 Speaker 2: threatened to walk away from its six hundred and seventy 70 00:03:02,280 --> 00:03:04,760 Speaker 2: two million dollar takeover bed. 71 00:03:04,560 --> 00:03:05,880 Speaker 1: You will walk. 72 00:03:06,400 --> 00:03:09,280 Speaker 2: What is happening here to Maine Farmer Group is the 73 00:03:09,320 --> 00:03:13,280 Speaker 2: asxisted company was founded way back in eighteen eighty six, 74 00:03:13,360 --> 00:03:16,120 Speaker 2: mind you, as a parcel delivery service, but. 75 00:03:16,080 --> 00:03:18,440 Speaker 1: The man in the early nineteen nineties, Maine was found 76 00:03:18,480 --> 00:03:20,519 Speaker 1: to be part of a price fixing cartel, so it 77 00:03:20,680 --> 00:03:22,720 Speaker 1: sold its transport interests. 78 00:03:22,320 --> 00:03:25,000 Speaker 2: And diversified into healthcare along the journey, you know, the 79 00:03:25,080 --> 00:03:26,120 Speaker 2: natural sort of pivot. 80 00:03:26,200 --> 00:03:29,359 Speaker 1: Yeah. They now sales birth control and menopause and dermatology 81 00:03:29,360 --> 00:03:31,560 Speaker 1: products in Australia and the US. But it hasn't all 82 00:03:31,600 --> 00:03:34,000 Speaker 1: been smooth sailing, juzzy boy. It suffered a net loss 83 00:03:34,000 --> 00:03:36,360 Speaker 1: of nearly one hundred and seventy million bucks in twenty 84 00:03:36,360 --> 00:03:38,680 Speaker 1: twenty four, but the man back. In February this year, 85 00:03:38,760 --> 00:03:42,440 Speaker 1: the US pharmaceutical company named Cossette Center takeover bid Main's 86 00:03:42,480 --> 00:03:45,200 Speaker 1: way the six hundred and seventy two million bucks. 87 00:03:44,960 --> 00:03:47,920 Speaker 2: Which was a thirty seven percent premium to Maine's closing 88 00:03:48,000 --> 00:03:50,840 Speaker 2: price before this offer fastworld to now, and Cossette is 89 00:03:50,840 --> 00:03:53,280 Speaker 2: trying to walk away from the deal, claiming there's been 90 00:03:53,360 --> 00:03:56,120 Speaker 2: a material adverse change since their offer. 91 00:03:56,200 --> 00:03:58,200 Speaker 1: Oh and the market didn't take that one. Well. 92 00:03:58,240 --> 00:04:01,800 Speaker 2: Next minute, Main share price thirty percent. So what is 93 00:04:01,840 --> 00:04:04,720 Speaker 2: the key learning here? A material adverse change gives a 94 00:04:04,720 --> 00:04:08,280 Speaker 2: buyer a potential route to either exit or renegotiate terms 95 00:04:08,280 --> 00:04:10,800 Speaker 2: of a deal. If something negative happens between the time 96 00:04:10,800 --> 00:04:12,880 Speaker 2: when the offer is made and the deal closing. 97 00:04:12,560 --> 00:04:14,880 Speaker 1: It's basically a legal escape. 98 00:04:14,640 --> 00:04:19,200 Speaker 2: Hatchink, a major profit downgrade, a scandal, a regulatory issue, 99 00:04:19,240 --> 00:04:19,760 Speaker 2: and a man. 100 00:04:19,760 --> 00:04:22,440 Speaker 1: In this case, Cossette claims that there was a material 101 00:04:22,560 --> 00:04:24,760 Speaker 1: change in Main's financial position. 102 00:04:24,520 --> 00:04:27,960 Speaker 2: And also that Maine had made false and misleading claims 103 00:04:27,960 --> 00:04:31,400 Speaker 2: to the US Food and Drug Administration about its contraception pill. 104 00:04:31,520 --> 00:04:34,240 Speaker 1: But here's the catch. Courts don't take these changes very 105 00:04:34,320 --> 00:04:34,920 Speaker 1: lightly now. 106 00:04:34,960 --> 00:04:38,720 Speaker 2: In fact, most material adverse change clause disputes end up 107 00:04:38,760 --> 00:04:39,960 Speaker 2: favoring the seller. 108 00:04:39,800 --> 00:04:42,440 Speaker 1: Because buyers need to prove the change is substantial and 109 00:04:42,520 --> 00:04:44,600 Speaker 1: long lasting and not just a short term blit. 110 00:04:44,680 --> 00:04:47,920 Speaker 2: So now, instead of riding off into the merger sunset, 111 00:04:48,120 --> 00:04:50,920 Speaker 2: Maine and Cossette are lawyering up and preparing. 112 00:04:50,520 --> 00:04:53,919 Speaker 1: For a legal showdown. For our third and final story, 113 00:04:54,040 --> 00:04:56,960 Speaker 1: bitcoin has hidden all time high after breaking through the 114 00:04:56,960 --> 00:04:59,720 Speaker 1: one hundred and ten thousand US dollar barrier, and it's 115 00:04:59,760 --> 00:05:02,159 Speaker 1: now with more than Google and Amazon. Not bad for 116 00:05:02,200 --> 00:05:04,440 Speaker 1: a made up currency with no ceo and no boards. 117 00:05:04,440 --> 00:05:06,359 Speaker 1: Don't tell me more, Joz boy So we know that 118 00:05:06,360 --> 00:05:08,400 Speaker 1: bitcoin was created by the man and still the myth 119 00:05:08,520 --> 00:05:11,000 Speaker 1: SITUTIONI nakamodu in two thousand and eight. At first, b 120 00:05:11,160 --> 00:05:14,159 Speaker 1: Man it was just quirky coders and libertarians getting on board. 121 00:05:14,200 --> 00:05:15,800 Speaker 1: But crypto has become mainstream. 122 00:05:15,839 --> 00:05:18,279 Speaker 2: In fact, number of Australians that hold some form of 123 00:05:18,279 --> 00:05:20,800 Speaker 2: crypto is around twenty percent according to Fintech Australia. 124 00:05:20,839 --> 00:05:23,720 Speaker 1: That means it's more mainstream than oace milk in Australia. 125 00:05:23,760 --> 00:05:25,919 Speaker 2: And over the past fifteen years it's gone through a 126 00:05:26,000 --> 00:05:28,320 Speaker 2: number of incredibly volatile cycles. 127 00:05:27,960 --> 00:05:31,080 Speaker 1: And Jazi Boyd, this happened once again. Yeah. In April 128 00:05:31,160 --> 00:05:33,320 Speaker 1: this year, the price of bitcoin fell to seventy four 129 00:05:33,320 --> 00:05:36,440 Speaker 1: thousand US dollars after Trump's tariff tantrum. But bitcoin has 130 00:05:36,480 --> 00:05:39,479 Speaker 1: been rapidly climbing up actually forty three percent since then. 131 00:05:39,560 --> 00:05:41,520 Speaker 1: And now Bitcoin's hit it's all time high of one 132 00:05:41,600 --> 00:05:43,400 Speaker 1: hundred and ten thousand US dollars. 133 00:05:43,480 --> 00:05:46,559 Speaker 2: The driver has been spot bitcoin ETFs in the US. 134 00:05:46,920 --> 00:05:49,560 Speaker 1: Institutions are looking for ways to get exposure to bitcoin 135 00:05:49,640 --> 00:05:52,360 Speaker 1: without actually owning bitcoin. So what's the key learning here? Then? 136 00:05:52,440 --> 00:05:55,880 Speaker 1: It took fifteen years, but bitcoin has become institution accepted 137 00:05:55,960 --> 00:05:57,800 Speaker 1: and maybe even friendly. Well. 138 00:05:57,800 --> 00:06:00,320 Speaker 2: In jan twenty twenty four, the US Secure it is 139 00:06:00,360 --> 00:06:03,280 Speaker 2: an Exchange Commission the SEC, they approved their first ever 140 00:06:03,440 --> 00:06:04,880 Speaker 2: spot bitcoin ETF. 141 00:06:04,600 --> 00:06:07,480 Speaker 1: And that means large institutions can get exposure to bitcoin 142 00:06:07,720 --> 00:06:10,600 Speaker 1: via these etf and these ETFs track the real price 143 00:06:10,640 --> 00:06:12,920 Speaker 1: of bitcoin. Jazy boy. Why do these ETFs make such 144 00:06:12,920 --> 00:06:15,560 Speaker 1: a big impact though, Because holding crypto directly is a 145 00:06:15,720 --> 00:06:18,640 Speaker 1: nightmare for large institutions. There's the risk of losing the 146 00:06:18,680 --> 00:06:21,919 Speaker 1: password aka the private key. There's also a heap of 147 00:06:22,080 --> 00:06:23,400 Speaker 1: regulatory red tape. 148 00:06:23,400 --> 00:06:27,360 Speaker 2: So these ETFs give large institutions the exposure without the headache. 149 00:06:27,400 --> 00:06:29,320 Speaker 1: Get this, bee man. Since the beginning of the year, 150 00:06:29,360 --> 00:06:32,120 Speaker 1: the number of bitcoin held by public companies has grown 151 00:06:32,160 --> 00:06:35,440 Speaker 1: thirty one percent to about three hundred and forty nine billion. 152 00:06:35,160 --> 00:06:38,000 Speaker 2: US dollars and that comprises fifteen percent of the total 153 00:06:38,040 --> 00:06:38,840 Speaker 2: bitcoin supply. 154 00:06:39,040 --> 00:06:41,880 Speaker 1: And this has been a big driver pushing bitcoin prices. 155 00:06:41,920 --> 00:06:44,440 Speaker 1: Who record heights Fox Sami. If you want to test 156 00:06:44,480 --> 00:06:46,520 Speaker 1: your knowledge or just prove that you're the fastest and 157 00:06:46,600 --> 00:06:49,200 Speaker 1: smartest person in the Flux family, make sure you are 158 00:06:49,279 --> 00:06:51,480 Speaker 1: ready on your phone to win quick sticks to make 159 00:06:51,520 --> 00:06:53,680 Speaker 1: sure to download the Flux app and be ready to win. 160 00:06:53,800 --> 00:06:56,640 Speaker 1: Thanks for listening and we'll see you on Monday.