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Speaker 1: This is what the plus, I'm justin and I'm harsh

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Speaker 1: Deep and it's Friday, the twenty seventh of September.

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Speaker 2: HD Sullivan Lou, the chairman of Peter Alexander Smiggle, Just

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Speaker 2: Jeans and a whole lot more retailers, has just warned

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Speaker 2: that this year is the toughest it has ever been

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Speaker 2: in retail He's been doing it for sixty one years.

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Speaker 2: Oh wow, got to say, not the most motivating news

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Speaker 2: for retailers right now.

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Speaker 1: Oh not at all.

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Speaker 2: Three cost cutting stories today, Let's get into it for

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Speaker 2: our first Warner Brewers. Discovery has conferred plans if Max's

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Speaker 2: streaming platform will be launching in Australia in the first

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Speaker 2: half of twenty twenty five.

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Speaker 1: Another competitor for Netflix, Disney Plus and Stan and another

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Speaker 1: subscription for US TV loving customers. Tell me more.

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Speaker 2: Okay, So, Warner Brothers Discovery is one of the largest

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Speaker 2: global entertainment companies in the whole world.

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Speaker 1: And it became even bigger in twenty twenty two when

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Speaker 1: Warner Brothers merged with Discovery, hence the name.

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Speaker 2: Yeah. Now, between the two, they dominate the movie scene

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Speaker 2: with the Marvel movies.

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Speaker 1: And they dominate TV with the Discovery Channel, Cartoon Network, CNN,

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Speaker 1: TNT Sports and many more.

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Speaker 2: But actually it's Water Brothers Discoveries HBO where many of

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Speaker 2: their TV and movie successes come from.

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Speaker 1: Yeah, we're talking shows like The Last of Us, Euphoria

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Speaker 1: and Succession, which have been some of the biggest hits

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Speaker 1: over the last few years.

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Speaker 2: And while HBO launched its streaming platform Max in twenty

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Speaker 2: twenty around the world, it wasn't in Australia and it

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Speaker 2: was licensing that content to Foxtel.

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Speaker 1: But Jazz Foxtail's long term licensing deal with Warner Brothers

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Speaker 1: and therefore HBO is up for negotiation in twenty twenty five,

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Speaker 1: and rather.

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Speaker 2: Than renew it, Water Brothers has announced they're going to

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Speaker 2: launch their own streaming service Max in Australia in the

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Speaker 2: first half of twenty twenty five.

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Speaker 1: Stealing back all of their content from Foxtel's tight grasp

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Speaker 1: like a plot twist in Succession.

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Speaker 2: So true. So what is the key learning here?

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Speaker 1: Owning your own products and your own content means controlling

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Speaker 1: your own destiny, HG.

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Speaker 2: When you license shows off third party platform, you're at

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Speaker 2: the mercy of their decisions.

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Speaker 1: Disney did this when they launched Disney Plus and they

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Speaker 1: yanked all of this shows from Netflix now Jazz. To

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Speaker 1: be fair, Foxtel does produce a tiny, tiny fraction of

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Speaker 1: its own content.

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Speaker 2: Yeah. In twenty twenty two it announced plans to produce

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Speaker 2: eight shows locally, like the courtroom drama The Twelve, which

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Speaker 2: I got to say, I've never heard of.

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Speaker 1: Neither, And this year it's announced plans to co produce

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Speaker 1: shows from Fox Entertainment.

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Speaker 2: But by licensing the majority of its content, Foxtale has

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Speaker 2: risks being left.

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Speaker 1: Behind because jazz. While creating your own content has enormous costs,

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Speaker 1: it also means you don't need to face these types

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Speaker 1: of content battles.

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Speaker 2: And given there are fifteen paid streaming plays in Australia already,

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Speaker 2: oh wow, Foxtel and its streaming platform Binge, I're going

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Speaker 2: to find it increasingly difficult to differentiate itself. Before we

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Speaker 2: jump into our second story, we're very excited to have

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Speaker 2: Michael McCarthy, the chief commercial officer from MOVIU Australia, to

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Speaker 2: give us another market update for this week. Michael, welcome

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Speaker 2: to the pod.

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Speaker 3: Thank you very much. It's great to be hearing it, so.

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Speaker 2: Talk to us. Apart from the AFL Grand Final this weekend.

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Speaker 2: What have you got for us this week?

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Speaker 3: Well, lots song. Once again central banks at the center

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Speaker 3: of the market action.

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Speaker 4: Because after hearing from the US Federal Reserve last week

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Speaker 4: and they're the cutting of rates, We've heard from a

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Speaker 4: lot of others. We've heard from the Bank of England,

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Speaker 4: We've heard from the Bank of Japan, we've heard from

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Speaker 4: the Reserve Bank of Australia. And what's really interesting is

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Speaker 4: something that we haven't seen for fifteen years is starting

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Speaker 4: to break out. That is, instead of responding to the

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Speaker 4: global impulses and ways that we're driving markets and economies

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Speaker 4: and all acting together, central banks are now focusing on

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Speaker 4: their own countries and their own stories, and that means

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Speaker 4: we can see situations where, for example, in Japan and Australia,

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Speaker 4: interstrates are going up, while in the US and Europe

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Speaker 4: they're going down. And that's something we haven't seen since

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Speaker 4: before the Great Financial Crisis is two and eighty two thousand.

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Speaker 4: For many investors and traders, this is the first time

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Speaker 4: they'll see central banks acting independently. And one of the

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Speaker 4: things the traders are talking about this for me, is

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Speaker 4: that we'll see an increase in volatility. Now, volatility can

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Speaker 4: be a scary word, but let's remember risk and reward related.

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Speaker 4: So when volatility increases, we certainly had greater downside risk

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Speaker 4: and investors should be aware of that. But there's also

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Speaker 4: potential folks shares to really shoot higher, higher than we

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Speaker 4: would otherwise expect, and investors and trailers should be taking

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Speaker 4: that into account.

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Speaker 1: For our second story, Google Australia is about to roll

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Speaker 1: out the most significant change to its search engine in

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Speaker 1: over a decade because it's welcoming in AI.

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Speaker 2: Google have been panicking about this one ever since they've

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Speaker 2: potched announcement last year. I remember that it was a disast,

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Speaker 2: so tell me what.

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Speaker 1: So for decades, Google has dominated the search engine market

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Speaker 1: with more than eighty percent market share.

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Speaker 2: They've become the go to source for pretty much any

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Speaker 2: piece of information.

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Speaker 1: But when the hot, shiny new toy of chat Gibt

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Speaker 1: came onto the scene in November twenty twenty two, Google

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Speaker 1: raise a red alert.

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Speaker 2: Yeah, it was the first real threat to Google search

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Speaker 2: dominance in over a decade.

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Speaker 1: So now Google has announced that it's a new feature

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Speaker 1: called AI Overviews will launch in Australia over the coming days.

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Speaker 2: So how does this overviews feature work?

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Speaker 1: Well, let's say you search, how do I make sure

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Speaker 1: my spaghetti is al dente?

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Speaker 2: Okay, go on before the.

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Speaker 1: Hyperlinks to other pages that you're used to, Google will

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Speaker 1: give you a short AI generated summary and then.

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Speaker 2: The traditional search results will be further down the page.

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Speaker 1: Yeah. Google has already rolled out the AI overviews in

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Speaker 1: the US, UK, India, Japan, Indonesia, Mexico and Brazil.

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Speaker 2: And over the coming days a small percentage of Australians

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Speaker 2: will also receive the feature too.

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Speaker 1: All part of their plan to keep Google Search relevant

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Speaker 1: in the new AI age.

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Speaker 2: Yeah, so what is the key learning here?

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Speaker 1: Companies need to protect the golden goose at all costs.

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Speaker 2: Yeah, Google search is very clearly Google's cash can get this.

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Speaker 2: Google generated more than one hundred and seventy five billion

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Speaker 2: US dollars for its search products in twenty twenty three alone.

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Speaker 1: That's more than five times what it made from YouTube.

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Speaker 2: So clearly this revenue stream must be protected at all

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Speaker 2: costs ahead of anything else.

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Speaker 1: But Google needs to strike a very careful balancing act.

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Speaker 2: Yeah. On the one hand, it needs to ensure their

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Speaker 2: products are cutting edge and competing with the best.

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Speaker 1: On the other hand, it needs to ensure that it's

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Speaker 1: delivering reliable search results.

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Speaker 2: Yeah, but we know the risky AI is that it

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Speaker 2: kind of has a tendency to hallucinate in a really

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Speaker 2: authoritative way.

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Speaker 1: Yeah. When AI overviews rolled out in the US, it

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Speaker 1: recommended that people eat at least one small rock per day.

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Speaker 2: It also suggested that you should add non toxic glue

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Speaker 2: to pizza. Yet the cheese. I remember the pizza basse.

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Speaker 1: So let's hope Google's AI doesn't confuse innovation with insanity.

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Speaker 2: Oh, we'll all be eating rocks and glue pizzas for dinner. Suits.

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Speaker 1: For our third and final story, Meta has debuted augmented

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Speaker 1: reality glasses called Orion with holographic displays.

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Speaker 2: Very Tony Stark vides I'm getting from this one. So

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Speaker 2: what is the STORYHG. Well Z.

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Speaker 1: We know Meta for its collection of social platforms like Facebook, Instagram, WhatsApp,

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Speaker 1: and threads.

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Speaker 2: Honestly completely forgot the threads are still around.

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Speaker 1: Don't blame you, but jazz. Over the last couple of years,

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Speaker 1: Meta has been going hard on developing the metaverse.

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Speaker 2: Also known as where the digital and physical worlds come together,

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Speaker 2: also known as Zack's little platefi.

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Speaker 1: Now we know that Meta's Reality Labs unit, which houses

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Speaker 1: the Metaverse development, has made forty five billion US dollars

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Speaker 1: in losses since twenty twenty five.

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Speaker 2: The Meta is hoping to turn the Metaverse's fate around

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Speaker 2: with its latest release.

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Speaker 1: Yeah, Meta has unveiled a prototype for its new augmented

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Speaker 1: reality glasses called the Orion.

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Speaker 2: It's got holographic displays and also the glasses can overlate

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Speaker 2: two D and three D content.

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Speaker 1: And of course there's AI that proactively offers suggestions to

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Speaker 1: the wearer.

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Speaker 2: It wouldn't be a new product. They didn't drop the

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Speaker 2: word AI, and.

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Speaker 1: It would it So right now, Orion is still a prototype,

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Speaker 1: but partman, part bot. Zuckerberg is hoping to release it

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Speaker 1: to the public by twenty twenty seven.

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Speaker 2: And actually, word on the Silicon Valley Street is that

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Speaker 2: Zuckerberg's mildly concerning obsession with the Metaverse may finally pay off.

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Speaker 1: So what's the key learning here?

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Speaker 2: Sometimes companies persist with new technology despite a lot of

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Speaker 2: signs that it won't work out, you see jazz.

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Speaker 1: Many tech leaders have been trying to make smart glasses

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Speaker 1: popular for a long time.

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Speaker 2: Like back in twenty thirteen when Google came out with

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Speaker 2: Google Glass, which cripped people way too much should be

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Speaker 2: come upular.

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Speaker 1: But despite that, companies like Meta and Snap have been

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Speaker 1: investing in smart glasses for a while now.

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Speaker 2: Because there's still betting that these smart glasses will place

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Speaker 2: smartphones in the future.

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Speaker 1: And all this persistence might actually be leading Meta somewhere.

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Speaker 2: Talk me through this.

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Speaker 1: Get this. Meta's newest generation of smart classes with RayBan

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Speaker 1: have sold more in a few months than the older

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Speaker 1: generations did over two years.

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Speaker 2: Wow. Kind of reminds me a bit of Apple when

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Speaker 2: it first dabbled in personal devices with the Apple Newton

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Speaker 2: back in nineteen ninety three.

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Speaker 1: It was a huge failure, but Apple kept persisting and

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Speaker 1: seventeen years later introduced the iPad in twenty ten and

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Speaker 1: the rest was history.

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Speaker 2: So who knows that she there might actually be a

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Speaker 2: future where we're lighting out for the newest model of

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Speaker 2: smart glasses and not smartphones. We loved having Michael McCarthy

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Speaker 2: for a Moving Australia on the Pod again today and

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Speaker 2: AHG before he left, I loved your question asking his

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Speaker 2: crystal ball predictions for the upcoming RBA decisions.

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Speaker 1: Michael, do you have any predictions for what the RBA

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Speaker 1: is going to do at its next meeting.

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Speaker 3: I think this is one of the most fascinating aspects

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Speaker 3: in the market at the moment because the RBA has

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Speaker 3: said that inflation won't be coming down sustainably until twenty

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Speaker 3: twenty six. Now there's a straight lead to that, no

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Speaker 3: rate cuts for all the trial months in Australia and

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Speaker 3: possibly rate riss. The market is saying that, and they

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Speaker 3: are pricing a rate cut by February. This is extrawdy.

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Speaker 3: Somebody's going to be wrong here, and if it's the market,

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Speaker 3: the adjustment here could be very sharp and very quick.

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Speaker 3: So I'm very careful about doubting their view. But it

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Speaker 3: appears on a loan in the market at the last

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Speaker 3: everybody else is prepared to back themselves against a reserve bank,

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Speaker 3: and I think that's a very gutsy call.

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Speaker 2: Michael, thanks so much for joining us in the pod

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Speaker 2: once again, a wealth of information and looking forward to

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Speaker 2: trading some of these stocks on MOOS platform.

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Speaker 3: Outstanding.

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Speaker 1: Thanks so much, Michael, plucks BAM. We hope you enjoyed

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Speaker 1: our interview with Michael McCarthy. Hit us up at flux

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Speaker 1: dot Finance. On Instagram and TikTok If there are any

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Speaker 1: other experts that you'd like us to chat

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Speaker 2: To, Thanks for listening and we'll see you on Monday.