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Speaker 1: This is what the flux. I'm Brett and I'm just then,

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Speaker 1: and it's Wednesday, the twenty first of a Juzzy Boy.

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Speaker 1: The Reserve Bank of Australia sat down yesterday and chose

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Speaker 1: peace with the Australian public with another cash rate cut.

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Speaker 1: But interestingly, after the last cash rate cut, COMBAK only

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Speaker 1: saw fourteen percent of its customers reduce their direct debit payments. Interesting,

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Speaker 1: so it'll be interesting to see if after this rate cut,

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Speaker 1: Ozzie's take some cash off the table.

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Speaker 2: And flux am. We have the cash rate cut all

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Speaker 2: covered in the plot today, but also in the Flux

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Speaker 2: app we have a what this cash rate looks like,

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Speaker 2: what the impact on the housing market might be, and

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Speaker 2: especially when you overlay it with the five percent home

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Speaker 2: ownership scheme that the government's rolling out. Make sure to

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Speaker 2: check out the Flux app if you want to understand

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Speaker 2: more about the changing face of the property market.

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Speaker 1: Three enticing stories today, Juzzy Boy, let's do it for

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Speaker 1: our first. The RBA has cut the cash rate by

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Speaker 1: zero point two five percent to three point eight five percent,

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Speaker 1: but warns that Trump's tantrums could still shape the Australian economy.

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Speaker 2: The cash rates Sea Cael that we've all been waiting for.

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Speaker 2: B Man, so tell me more.

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Speaker 1: Well, as we've spoken about many times on the Pod,

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Speaker 1: the RBA is Australia's central Bank.

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Speaker 2: Yeah, it sets the official cash rate to try and

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Speaker 2: manage inflation as well as driving economic activity and jazzy boy.

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Speaker 1: After a pause in April, analysts were very bullish on

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Speaker 1: a rate cut yep.

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Speaker 2: Some were even predicting a jumbo cut of point five percent,

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Speaker 2: looking at you, Nab.

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Speaker 1: But now the RBA came so and conquered with a

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Speaker 1: cash rate cut of the non jumbo amount of point

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Speaker 1: two five percent.

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Speaker 2: And that takes us to a cash rate of now

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Speaker 2: three point eight five percent.

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Speaker 1: And that's the lowest cash rate we've had in over

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Speaker 1: two years.

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Speaker 2: But be man. Despite for the inflation, the RBA is

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Speaker 2: still side eyeing the global economy. Yep.

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Speaker 1: They want that. They still don't know how the US

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Speaker 1: is on again off again tariffs will impact the Australian

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Speaker 1: economy and locally, the RBA is still concerned with a

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Speaker 1: low unemployment rate.

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Speaker 2: And not to forget, Australia's productivity rate has been flatlining,

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Speaker 2: which is not a good sign for a growing economy interesting.

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Speaker 1: So what is the key learning here, Well.

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Speaker 2: Nobody really talks about productivity. The ARBA is pretty much obsessed.

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Speaker 1: With it because low productivity is a key driver of

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Speaker 1: higher inflation.

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Speaker 2: In simple terms, be man, productivity is how much stuff

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Speaker 2: we produce per hour of work.

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Speaker 1: When the productivity rate of the economy increases, it means

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Speaker 1: businesses can afford to give staff pay rises without jacking

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Speaker 1: up prices of their goods and services.

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Speaker 2: But when the productivity is flat or goes down, then

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Speaker 2: businesses can only afford to give pay rises by increasing

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Speaker 2: prices of their products or services.

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Speaker 1: And increased prices leads to growing inflation.

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Speaker 2: A big no no in the RBA's eyes.

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Speaker 1: And while inflation has slowed down, productivity in Australia has

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Speaker 1: barely moved in the last five years.

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Speaker 2: In fact, being man, in twenty twenty three it actually

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Speaker 2: fell by three point seven percent. And that is why

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Speaker 2: the RBA is not getting too.

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Speaker 1: Loose with this is just yet, because not all indicators

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Speaker 1: are looking rosy right now.

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Speaker 2: For our second story, monash IVF has warned of an

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Speaker 2: ugly update to its profit guidance after an embryo mix

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Speaker 2: up has caused a share price to plummet.

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Speaker 1: Clients are taking their baby business lawe. What is the

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Speaker 1: story here case.

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Speaker 2: Monach IVF is the ASX listed group that specializes in

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Speaker 2: fertility services in Australia. They do everything from IVF to

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Speaker 2: egg freezing, to genetic testing and a whole lot more.

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Speaker 2: But Judge Boy earlier this year, monash IVF found that

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Speaker 2: they had mixed up two clients' embryos, but they only

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Speaker 2: found out two years after the fact and after a

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Speaker 2: baby had been delivered.

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Speaker 1: Monash iviev reported this as at once off human error

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Speaker 1: that would not materially impact the company's profit, but.

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Speaker 2: When the news got out, clients and investors were shugn.

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Speaker 1: Next minute, monash Ivf's share price dropped thirty four percent.

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Speaker 2: And now monash IVF warned that their profits are also

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Speaker 2: expected to drop by more than eleven percent to twenty

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Speaker 2: seven and a half million dollars.

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Speaker 1: Next minute, their shares dropped another twelve percent.

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Speaker 2: So what is the key learning here?

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Speaker 1: Publicly listed companies have an obligation to disclose any information

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Speaker 1: that might have a material effect on their share price.

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Speaker 2: And material news could be things like changes to a

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Speaker 2: company structure, changes to senior management, or major cybersecurity breaches.

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Speaker 1: Now. In this case, monash IVF discovered the embryo mix

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Speaker 1: up in mid February.

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Speaker 2: But they didn't mention it in their half yearly results,

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Speaker 2: which happened two weeks later.

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Speaker 1: Fast forward to April, the board finally reported the embryo

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Speaker 1: mix up and they reported that it was not material,

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Speaker 1: but they.

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Speaker 2: Dropping their share price and profit guiden since the news

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Speaker 2: broke shows otherwise.

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Speaker 1: Which begs the question about what company information is actually

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Speaker 1: considered quote material.

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Speaker 2: For a company like monash IVF that relies heavily on

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Speaker 2: brand reputation and client trust, a single mistake can have

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Speaker 2: huge consequences.

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Speaker 1: And regardless of what they believed is material, the market

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Speaker 1: had the final say.

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Speaker 2: For our third and final story, Netflix has signed a

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Speaker 2: deal with Sesame Workshop to make Netflix the streamy home

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Speaker 2: of Sesame Street.

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Speaker 1: Elmo is officially packing his bags and heading to the

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Speaker 1: Big Red n Tell me more.

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Speaker 2: Okay, So, Sesame Street is produced by Sesame Workshop, which

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Speaker 2: is a non profit organization.

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Speaker 1: YEP. Sesame Street has been using puppets to teach kids

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Speaker 1: their ABC's and one two three's and occasional life lessons

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Speaker 1: from a two meter tall yellow bird.

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Speaker 2: In fact, a man. Sesame Street is now shown in

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Speaker 2: more than one hundred and fifty countries and breaches more

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Speaker 2: than one hundred and fifty six million kids. So jusey.

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Speaker 1: Way back in twenty nineteen, Sesame Street started streaming on

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Speaker 1: the streaming platform Max Akahbo Max aka Water Brothers Discovery,

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Speaker 1: but Ben Man.

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Speaker 2: Last year, Water Brothers Discovery decided not to renew the deal.

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Speaker 1: And for a moment it looked like Cookie Monster might

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Speaker 1: need to sell his last biscuit. Now b Man, Netflix

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Speaker 1: has swooped in, and that means Netflix will stream the

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Speaker 1: upcoming fifty sixth season of Sesame Street, as well as

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Speaker 1: the library of its classic episodes and Cookie Monster Cookies.

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Speaker 2: And be Man. This is all part of Netflix's strategy

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Speaker 2: to own children's content.

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Speaker 1: So what is the Cookie Monster learning here? Judy Boy.

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Speaker 2: As families move away from PayTV, streaming platforms are in

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Speaker 2: a tug of war for toddler attention, and that's because

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Speaker 2: not only does kids content perform well, but it keeps subscribers.

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Speaker 2: Paint Get This Kids series, Cocoa Melon and Pepper Pig

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Speaker 2: some of the most stream shows of twenty twenty five

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Speaker 2: on Netflix.

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Speaker 1: Even ahead of dare I say it Young Shelded, not Young.

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Speaker 2: Sheldon and be Man. Streaming platforms love kids content because

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Speaker 2: it's one of the greatest drivers of subscriber to retention yeap.

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Speaker 1: Parents are pretty much willing to pay for anything that

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Speaker 1: will avoid a nagging kid.

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Speaker 2: And be Man. This eight Netflix's first foray into the

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Speaker 2: kid's content world.

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Speaker 1: It already holds the streaming rights to Miss Rachel and

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Speaker 1: Coco Melon and Judge Boy as you know, it has

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Speaker 1: the rights to Pepper, Pig and Back.

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Speaker 2: In twenty twenty one, it also bought the Golden Ticket

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Speaker 2: to acquire Roll Dal rights for six hundred and eighty

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Speaker 2: six million US dollars.

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Speaker 1: So by snapping up Sesame Street, Netflix is locking in

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Speaker 1: the kind of content that keeps family subscribed month after month.

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Speaker 2: Because if you control the shows that stop tantrums, you

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Speaker 2: control the household. Fux Sam, did you know for every

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Speaker 2: one percent cashtraight cut, the average Australian house increases in

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Speaker 2: value by nineteen percent. We cover all of that and

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Speaker 2: a whole lot more. Make sure to download the Flux

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Speaker 2: app and check it out.

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Speaker 1: Thanks for listening, and we'll see you on Friday.