1 00:00:05,240 --> 00:00:06,640 Speaker 1: This is what the flux. 2 00:00:06,720 --> 00:00:10,320 Speaker 2: I'm Brett now justin and its Monday, the sixteenth of December. 3 00:00:09,960 --> 00:00:12,760 Speaker 1: Jesse Wait Westpac reckons that cost of living challenges may 4 00:00:12,800 --> 00:00:15,360 Speaker 1: have hit their peak and now things are getting easier 5 00:00:15,360 --> 00:00:18,560 Speaker 1: at all. That's because the number of mortgage customers experiencing 6 00:00:18,600 --> 00:00:21,640 Speaker 1: hardship hit a high of nearly twenty thousand customers in 7 00:00:21,760 --> 00:00:24,599 Speaker 1: June and it reduced to seventeen and a half thousand 8 00:00:24,680 --> 00:00:27,560 Speaker 1: in November. Whack. On top of that, consumer sentiment at 9 00:00:27,560 --> 00:00:29,480 Speaker 1: its highest level in two and a half years, and 10 00:00:29,640 --> 00:00:32,479 Speaker 1: everything is coming up or Westpac. 11 00:00:32,200 --> 00:00:36,120 Speaker 2: Except for their financial results. We've absolutely loved being in 12 00:00:36,159 --> 00:00:38,360 Speaker 2: your ears while you make coffee, jump on the train, 13 00:00:38,520 --> 00:00:40,680 Speaker 2: or even pump some iron this year. But this will 14 00:00:40,720 --> 00:00:42,800 Speaker 2: be our last week of the pod for twenty twenty four. 15 00:00:42,840 --> 00:00:45,880 Speaker 2: Don't worry. We'll be back fit and firing on January twentieth, 16 00:00:45,960 --> 00:00:47,920 Speaker 2: twenty twenty five. But if you're craving a little bit 17 00:00:47,920 --> 00:00:50,160 Speaker 2: of flux in your life over that period, don't worry, 18 00:00:50,159 --> 00:00:52,640 Speaker 2: because the flux app ain't going nowhere. There's plenty of 19 00:00:52,640 --> 00:00:55,640 Speaker 2: business use finance courses and budgeting tools to keep you 20 00:00:55,680 --> 00:00:58,040 Speaker 2: occupied over the lonely summer months. 21 00:00:58,080 --> 00:01:02,080 Speaker 1: Three refreshing stories TODAYI boy, let's do it for our first. 22 00:01:02,200 --> 00:01:06,240 Speaker 1: AMP has become the first major super fund to invest 23 00:01:06,280 --> 00:01:09,840 Speaker 1: in crypto after investing twenty seven million dollars into bitcoin. 24 00:01:09,920 --> 00:01:11,120 Speaker 2: I want to be the fly on the wall for 25 00:01:11,160 --> 00:01:13,600 Speaker 2: that investment, manager's pitched to the investment committee. Be man, 26 00:01:13,640 --> 00:01:14,600 Speaker 2: so tell me more, all right. 27 00:01:14,560 --> 00:01:18,360 Speaker 1: Jazi boy. AMP is one of Australia's oldest financial services companies. 28 00:01:18,480 --> 00:01:21,000 Speaker 2: It was founded in eighteen forty nine and actually stands 29 00:01:21,000 --> 00:01:24,959 Speaker 2: for Australian Mutual Provident Society. Very sexy night. 30 00:01:25,520 --> 00:01:29,000 Speaker 1: And right now. AMPS around fifty seven billion dollars worth 31 00:01:29,000 --> 00:01:30,640 Speaker 1: of super assets under management. 32 00:01:30,920 --> 00:01:33,280 Speaker 2: So now they thought, why not give bitcoin a bit 33 00:01:33,280 --> 00:01:33,760 Speaker 2: of a whirl? 34 00:01:33,959 --> 00:01:35,920 Speaker 1: Yeah, well they just announced the investment. 35 00:01:35,959 --> 00:01:36,240 Speaker 2: Now. 36 00:01:36,360 --> 00:01:39,480 Speaker 1: They had invested twenty seven million into bitcoin back in 37 00:01:39,560 --> 00:01:40,240 Speaker 1: May when. 38 00:01:40,040 --> 00:01:42,640 Speaker 2: The price was sixty to seventy thousand US dollars. 39 00:01:42,720 --> 00:01:45,720 Speaker 1: This is interesting because other super funds like Australian Super 40 00:01:45,840 --> 00:01:49,920 Speaker 1: and Australian Retirement Trust have specifically dismissed crypto investments. 41 00:01:49,960 --> 00:01:52,640 Speaker 2: Yeah, they reckon crypto is just too volatile for. 42 00:01:52,600 --> 00:01:54,840 Speaker 1: Super funds and doesn't offer a yield. 43 00:01:54,920 --> 00:01:57,280 Speaker 2: And they man this step by AMP and the thirty 44 00:01:57,280 --> 00:02:00,280 Speaker 2: percent uplift in bitcoin so far might just drive other 45 00:02:00,320 --> 00:02:03,320 Speaker 2: super funds to dip their toes in the crypto waters too. 46 00:02:03,400 --> 00:02:05,120 Speaker 1: Mm so what is the key learning here? 47 00:02:05,200 --> 00:02:08,639 Speaker 2: Crypto can't be called a fringe asset class anymore, especially 48 00:02:08,639 --> 00:02:12,000 Speaker 2: when traditionally cautious industries like super funds are getting in 49 00:02:12,080 --> 00:02:12,960 Speaker 2: on the autiboy. 50 00:02:13,120 --> 00:02:16,840 Speaker 1: Let's be real here. AMP only allocated a tiny portion 51 00:02:16,919 --> 00:02:18,800 Speaker 1: of its investment portfolio into bitcoin. 52 00:02:18,880 --> 00:02:21,520 Speaker 2: Yeah, we're talking just point zero five percent, so it's 53 00:02:21,520 --> 00:02:24,120 Speaker 2: not meaningful from a risk perspective. And then, man, might 54 00:02:24,120 --> 00:02:27,240 Speaker 2: I remind you that historically Australian super funds were hesitant 55 00:02:27,240 --> 00:02:28,880 Speaker 2: to invest in venture capital two. 56 00:02:28,760 --> 00:02:30,920 Speaker 1: Yep, they thought the risk were too high and the 57 00:02:30,960 --> 00:02:32,040 Speaker 1: funds were illiquid. 58 00:02:32,040 --> 00:02:34,639 Speaker 2: But in twenty fourteen, host Plass made its first investment 59 00:02:34,680 --> 00:02:36,639 Speaker 2: in the VC space, where they happened to invest in 60 00:02:36,680 --> 00:02:39,440 Speaker 2: a range of funds and a small little startup called Canvas. 61 00:02:39,680 --> 00:02:42,200 Speaker 1: This grew from a ninety four million dollar investment to 62 00:02:42,400 --> 00:02:44,760 Speaker 1: over one point nine billion dollars in value. 63 00:02:44,480 --> 00:02:46,920 Speaker 2: And since then other super funds like Australian Super and 64 00:02:47,000 --> 00:02:50,400 Speaker 2: HESTER have also invested in vcs and directly into startups. Two. 65 00:02:50,480 --> 00:02:53,560 Speaker 1: So Jazi boy, While AMP is the first major super 66 00:02:53,600 --> 00:02:56,600 Speaker 1: fund to invest in crypto. The changing landscape makes me 67 00:02:56,720 --> 00:02:59,960 Speaker 1: think it may not be the last for our set. 68 00:03:00,000 --> 00:03:03,480 Speaker 1: Second story, Adobe has seen at share price plummet after 69 00:03:03,520 --> 00:03:08,080 Speaker 1: concerns its AI tools aren't being monetized as fast as expected. 70 00:03:08,200 --> 00:03:10,079 Speaker 2: Now you can just hear the dramatic music in the 71 00:03:10,120 --> 00:03:13,720 Speaker 2: bodroom as the competitors creep up um tell me. 72 00:03:13,680 --> 00:03:16,760 Speaker 1: Well, well, josy boy, Adobe is the design software powerhouse 73 00:03:16,760 --> 00:03:20,440 Speaker 1: behind Photoshop, Illustrator and Premiere pro Man. 74 00:03:20,520 --> 00:03:23,840 Speaker 2: Don't forget Adobe actually created the PDF format back in 75 00:03:23,880 --> 00:03:25,000 Speaker 2: the nineties, Is. 76 00:03:24,960 --> 00:03:26,800 Speaker 1: That correct, josy boy, little expert. 77 00:03:27,160 --> 00:03:29,880 Speaker 2: But you didn't know you'd be thanking Adobe every single 78 00:03:29,919 --> 00:03:30,840 Speaker 2: time you open a file. 79 00:03:31,000 --> 00:03:33,679 Speaker 1: But gone of the days when designers couldn't live without Adobe, 80 00:03:33,720 --> 00:03:36,760 Speaker 1: because hello Canva, and hello Figma, and a whole lot 81 00:03:36,760 --> 00:03:37,760 Speaker 1: of other competitors too. 82 00:03:37,840 --> 00:03:39,880 Speaker 2: And now, b man, Adobe stock has dropped by more 83 00:03:39,920 --> 00:03:43,720 Speaker 2: than thirteen percent because it released weaker than expected revenue projection. 84 00:03:43,960 --> 00:03:47,720 Speaker 1: You see, Adobe released a new AI tool called Firefly 85 00:03:47,960 --> 00:03:49,800 Speaker 1: in March of twenty twenty three, and. 86 00:03:49,760 --> 00:03:52,760 Speaker 2: Well, Camva's been catching up to Adobe's traditional design suite. 87 00:03:52,760 --> 00:03:55,760 Speaker 2: Adobe was saying we're way ahead because check out our 88 00:03:55,800 --> 00:03:58,560 Speaker 2: fancy AI, but b Man Not only have Adobe struggled 89 00:03:58,560 --> 00:04:01,640 Speaker 2: to grow the AI product, and even Google have released 90 00:04:01,640 --> 00:04:04,200 Speaker 2: their own AI design offering too check. On top of that, 91 00:04:04,280 --> 00:04:07,680 Speaker 2: new players like Stability, AI, mid Journey and Runway, and 92 00:04:07,720 --> 00:04:10,640 Speaker 2: investors are kind of concerned that Adobe might not find 93 00:04:10,640 --> 00:04:12,440 Speaker 2: a way to actually monetize this product. 94 00:04:12,640 --> 00:04:14,040 Speaker 1: So what is the key learning here? 95 00:04:14,080 --> 00:04:16,560 Speaker 2: After more than two years in the market, AI is 96 00:04:16,600 --> 00:04:19,719 Speaker 2: now seen as a baseline expectation for software companies rather 97 00:04:19,920 --> 00:04:21,920 Speaker 2: than a unique selling point For Adobe. 98 00:04:21,960 --> 00:04:24,640 Speaker 1: This means that having AI features like Firefly is not 99 00:04:24,880 --> 00:04:25,360 Speaker 1: enough yet. 100 00:04:25,400 --> 00:04:27,599 Speaker 2: The challenge for Adobe is they haven't yet been able 101 00:04:27,640 --> 00:04:30,640 Speaker 2: to truly monetize their AI functionality. 102 00:04:30,040 --> 00:04:32,560 Speaker 1: Which it promised to be a game changer factory Man. 103 00:04:32,600 --> 00:04:35,240 Speaker 2: Adobe's R and D expenses hit two point six billion 104 00:04:35,320 --> 00:04:38,600 Speaker 2: US dollars for the nine months ending September twenty twenty three, with. 105 00:04:38,600 --> 00:04:41,200 Speaker 1: The bulk going into the AI development and right now 106 00:04:41,240 --> 00:04:44,279 Speaker 1: investors are getting tired of waiting, so it's not surprising 107 00:04:44,560 --> 00:04:47,560 Speaker 1: that Adobe share price has been whacked. 108 00:04:48,040 --> 00:04:51,360 Speaker 2: For our third and final story, Foxtell is looking more 109 00:04:51,360 --> 00:04:53,800 Speaker 2: and more likely to be sold as execs from a 110 00:04:53,800 --> 00:04:56,599 Speaker 2: British sports platform meet with the Fox Dog team to 111 00:04:56,680 --> 00:04:58,400 Speaker 2: sign on the dotted line. 112 00:04:58,120 --> 00:05:00,800 Speaker 1: As your favorite pop star Jessejson as Juzzy Boy. It 113 00:05:00,880 --> 00:05:03,200 Speaker 1: is all about the price tag. So what is going 114 00:05:03,200 --> 00:05:03,560 Speaker 1: on here? 115 00:05:03,680 --> 00:05:06,279 Speaker 2: So man back into today. Foxtel was the go to 116 00:05:06,560 --> 00:05:07,760 Speaker 2: PTV source. 117 00:05:07,640 --> 00:05:11,760 Speaker 1: Your Fox eightsy comedy channel, cartoon network, anyone, back when. 118 00:05:11,640 --> 00:05:14,120 Speaker 2: The likes of Netflix and YouTube and TikTok bare existed 119 00:05:14,200 --> 00:05:15,400 Speaker 2: or didn't exist at all. 120 00:05:15,279 --> 00:05:18,440 Speaker 1: But Juzzy Boy. Since these competitors stepped in, Foxteale subscriber 121 00:05:18,480 --> 00:05:20,760 Speaker 1: numbers have been rapidly declining. 122 00:05:20,279 --> 00:05:22,040 Speaker 2: Particularly over the past five years. 123 00:05:22,160 --> 00:05:24,480 Speaker 1: In fact, there are now only one point four million 124 00:05:24,560 --> 00:05:26,840 Speaker 1: paying Fox Steale subscribers in Australia today. 125 00:05:26,880 --> 00:05:29,159 Speaker 2: And that's why Foxdale rolled our Ko for sport, Binge 126 00:05:29,160 --> 00:05:30,480 Speaker 2: for movies, Flash for news. 127 00:05:30,520 --> 00:05:35,120 Speaker 1: But now the joint is Foxtel, News Corp and Telstra. 128 00:05:35,279 --> 00:05:38,359 Speaker 1: They won out and now a British streaming platform called 129 00:05:38,640 --> 00:05:41,920 Speaker 1: Dezone spelt d a z N is in the box 130 00:05:41,960 --> 00:05:45,040 Speaker 1: seat to buy foxtell. Given previous acquisition talks fell over 131 00:05:45,080 --> 00:05:47,240 Speaker 1: because of price, it seems like News Corp may be 132 00:05:47,240 --> 00:05:49,240 Speaker 1: willing to compromise a little bit more now. 133 00:05:49,120 --> 00:05:52,640 Speaker 2: Because the window to receive a fair return is quickly closing. 134 00:05:52,920 --> 00:05:54,520 Speaker 1: Yeah, so what is the key learning here. 135 00:05:54,560 --> 00:05:57,960 Speaker 2: When evaluating whether to sell, a declining company's owners face 136 00:05:58,040 --> 00:06:01,360 Speaker 2: a classic dilemma, cling to pass valuations or accept a 137 00:06:01,440 --> 00:06:03,520 Speaker 2: deal that reflects today's reality. 138 00:06:03,560 --> 00:06:07,039 Speaker 1: Fox Sale's previous dominance in PATV created a high standard 139 00:06:07,040 --> 00:06:07,800 Speaker 1: for its valuation. 140 00:06:07,960 --> 00:06:10,800 Speaker 2: But here's a thing. Dominance in PATV is pretty worthless 141 00:06:10,800 --> 00:06:13,279 Speaker 2: today and even more so in the future. 142 00:06:13,160 --> 00:06:16,640 Speaker 1: So clinging to that previous success can lead to overestimating 143 00:06:16,640 --> 00:06:18,240 Speaker 1: its worth in today's market. 144 00:06:18,000 --> 00:06:19,960 Speaker 2: And the man let's not forget back. In twenty twenty, 145 00:06:20,000 --> 00:06:23,000 Speaker 2: a US cable entrepreneur offered two billion US sellers for 146 00:06:23,040 --> 00:06:24,520 Speaker 2: Foxtel and it was rejected. 147 00:06:24,680 --> 00:06:27,839 Speaker 1: And now McQuary group's research team reckons Foxtel is valued 148 00:06:27,839 --> 00:06:30,640 Speaker 1: at around seven hundred and thirty million dollars much so. 149 00:06:31,000 --> 00:06:32,800 Speaker 2: It looks like fox sell may need to take this 150 00:06:32,920 --> 00:06:36,400 Speaker 2: deal from deown and run buck day. Just a quick reminder, 151 00:06:36,440 --> 00:06:38,520 Speaker 2: we'll be wrapping up this Friday for the rest of 152 00:06:38,560 --> 00:06:40,279 Speaker 2: the year, but if you want all the action, it 153 00:06:40,360 --> 00:06:42,520 Speaker 2: is going all into the Flux app. There's plenty of 154 00:06:42,520 --> 00:06:45,359 Speaker 2: business news, finance courses, and budgeting tools to keep you 155 00:06:45,440 --> 00:06:47,640 Speaker 2: busy over the summer period. To make sure to download 156 00:06:47,680 --> 00:06:48,880 Speaker 2: the Flux app and check it all 157 00:06:48,920 --> 00:06:51,760 Speaker 1: Out, Thanks for listening, and we'll see you on Wednesday.