1 00:00:05,120 --> 00:00:08,520 Speaker 1: This is what the flux. I'm bred justin and it's Wednesday, 2 00:00:08,520 --> 00:00:09,400 Speaker 1: the fourth of Thebuury. 3 00:00:09,480 --> 00:00:11,840 Speaker 2: Does the boy. The NFL Super Bowl is taking place 4 00:00:12,000 --> 00:00:14,600 Speaker 2: next Monday, Australian time, and you know what that means. 5 00:00:14,720 --> 00:00:17,759 Speaker 2: Advertisers are splashing the cash. Get this one. Some of 6 00:00:17,760 --> 00:00:20,160 Speaker 2: the world's biggest brands will pay more than US ten 7 00:00:20,239 --> 00:00:24,000 Speaker 2: million dollars for thirty second Super Bowl advertising slots this year, 8 00:00:24,079 --> 00:00:26,759 Speaker 2: and that's up around twenty percent from last year's eight 9 00:00:26,840 --> 00:00:28,720 Speaker 2: million US dollars for thirty seconds. 10 00:00:28,840 --> 00:00:31,560 Speaker 1: Just can't work out where the value is there a man. 11 00:00:31,600 --> 00:00:33,800 Speaker 1: As you know, the RBA made a big cash rate 12 00:00:33,840 --> 00:00:36,000 Speaker 1: call yesterday and we'll be talking about it in the pod, 13 00:00:36,080 --> 00:00:37,800 Speaker 1: but if you want to go deep flux down, we 14 00:00:37,880 --> 00:00:39,839 Speaker 1: have it all covered in the Flux app. We talk 15 00:00:39,920 --> 00:00:43,600 Speaker 1: about why Ozzie's continuing to spend despite the cost of 16 00:00:43,640 --> 00:00:45,680 Speaker 1: living challenges. So if you want to learn more about 17 00:00:45,720 --> 00:00:47,880 Speaker 1: the RBA's big move, make sure to download the Flux 18 00:00:47,920 --> 00:00:48,840 Speaker 1: app and check it out. 19 00:00:48,960 --> 00:00:51,760 Speaker 2: Three massive stories said Hey juzzy boy, let's do it 20 00:00:51,880 --> 00:00:54,320 Speaker 2: or our First, the RBA has hiked the cash rate 21 00:00:54,440 --> 00:00:57,520 Speaker 2: zero point two five percent after the latest inflation numbers 22 00:00:57,640 --> 00:00:59,560 Speaker 2: keep growing and growing and growing. 23 00:00:59,640 --> 00:01:01,560 Speaker 1: We also or it come in, but nobody wanted to 24 00:01:01,600 --> 00:01:03,280 Speaker 1: admit it. So tell me what'll be man. 25 00:01:03,160 --> 00:01:05,319 Speaker 2: So Jazi boy. The Reserve Bank of Australia is like 26 00:01:05,360 --> 00:01:06,800 Speaker 2: the referee in a sports match. 27 00:01:06,880 --> 00:01:09,160 Speaker 1: Eight times a year, they check to see if inflation 28 00:01:09,360 --> 00:01:10,000 Speaker 1: is playing by. 29 00:01:10,000 --> 00:01:14,160 Speaker 2: The rules, alongside some other metrics like unemployment rate, productivity, 30 00:01:14,240 --> 00:01:15,120 Speaker 2: economic growth. 31 00:01:15,160 --> 00:01:18,120 Speaker 1: But they man if inflation races ahead or drags behind, 32 00:01:18,240 --> 00:01:20,600 Speaker 1: the RBA may choose to change the cash rate. 33 00:01:20,720 --> 00:01:23,480 Speaker 2: Well, the latest consumer price index rate jumped from three 34 00:01:23,560 --> 00:01:25,920 Speaker 2: point four percent to three point eight percent in December, 35 00:01:25,959 --> 00:01:26,200 Speaker 2: and that. 36 00:01:26,280 --> 00:01:30,400 Speaker 1: Was the second quarter that cpis exceeded the RBA's growth expectation. 37 00:01:30,000 --> 00:01:32,400 Speaker 2: And by now inflation is well outside the RBA's two 38 00:01:32,440 --> 00:01:33,840 Speaker 2: to three percent target range. 39 00:01:33,880 --> 00:01:37,000 Speaker 1: So it's no surprise that yesterday the RBA bumped up 40 00:01:37,040 --> 00:01:39,559 Speaker 1: the cash rate by point two five percent to prevent 41 00:01:39,600 --> 00:01:41,640 Speaker 1: inflation from spinning out of control. 42 00:01:41,840 --> 00:01:44,039 Speaker 2: Yep, the cash rate has officially been increased to three 43 00:01:44,120 --> 00:01:45,080 Speaker 2: point eight five percent. 44 00:01:45,120 --> 00:01:47,640 Speaker 1: But they man economists are still wrapping their heads around 45 00:01:47,760 --> 00:01:51,800 Speaker 1: why household spending is increasing when the economy is supposedly struggling. 46 00:01:52,200 --> 00:01:54,440 Speaker 1: So what's the key learning here? Welcome to the Great 47 00:01:54,520 --> 00:01:57,840 Speaker 1: Aussie money paradox. Everyone says they're struggling, but the receipts 48 00:01:57,920 --> 00:02:01,080 Speaker 1: say they're spending otherwise. The latest data from November last 49 00:02:01,200 --> 00:02:04,120 Speaker 1: year shows a household spending rate of six point three percent. 50 00:02:04,200 --> 00:02:06,360 Speaker 1: That's almost double the rate of spending compared to the 51 00:02:06,440 --> 00:02:09,560 Speaker 1: previous year. And it's not just an essentials juzsey boy, no, no, no, 52 00:02:09,760 --> 00:02:13,120 Speaker 1: Ozzie's a spending on clothing, electronics, concerts, sporting events and 53 00:02:13,240 --> 00:02:14,240 Speaker 1: many many more. 54 00:02:14,480 --> 00:02:17,240 Speaker 2: So why so many Australians spending big? 55 00:02:17,280 --> 00:02:19,200 Speaker 1: We'll be man, There are three big reasons why this 56 00:02:19,280 --> 00:02:22,000 Speaker 1: might be happening. Number One, the RBA dished out three 57 00:02:22,000 --> 00:02:24,720 Speaker 1: solid rate cuts last year which gave mortgage owners a 58 00:02:24,720 --> 00:02:26,280 Speaker 1: little bit of extra cash to splash. 59 00:02:26,320 --> 00:02:29,440 Speaker 2: Plus, Australia's unemployment rate is that a historic low of 60 00:02:29,480 --> 00:02:32,160 Speaker 2: four point one percent right now, which means more people 61 00:02:32,200 --> 00:02:34,680 Speaker 2: are earning and spending money. And lastly, b Man credit 62 00:02:34,680 --> 00:02:37,000 Speaker 2: card spending has jumped eight point six percent over the 63 00:02:37,080 --> 00:02:39,440 Speaker 2: last year. Even the stuff gets more expensive, people are 64 00:02:39,480 --> 00:02:41,000 Speaker 2: buying it on credit anyway. 65 00:02:41,160 --> 00:02:43,000 Speaker 1: So this rate hiak is a big warning from the 66 00:02:43,120 --> 00:02:46,120 Speaker 1: RBA that will hopefully put a lid on people spending 67 00:02:46,200 --> 00:02:50,799 Speaker 1: and inflation for our second story, Elon Musk's SpaceX has 68 00:02:50,800 --> 00:02:54,160 Speaker 1: acquired Elon Musk's XAI as he looks to unify his 69 00:02:54,280 --> 00:02:57,240 Speaker 1: AI and space ambitions. Is there just one day where 70 00:02:57,360 --> 00:02:59,720 Speaker 1: there is not a huge story about Elon Musk? Jusey boy, 71 00:02:59,720 --> 00:03:02,160 Speaker 1: I usually have Musk fatigue tell me more for the 72 00:03:02,240 --> 00:03:04,760 Speaker 1: last time. So we know that Elon Musk owns a 73 00:03:04,800 --> 00:03:06,160 Speaker 1: whole range of different companies. 74 00:03:06,200 --> 00:03:10,040 Speaker 2: We're talking SpaceX, XAI, Tesla X, Neuralink, the boring company, 75 00:03:10,080 --> 00:03:10,560 Speaker 2: but right. 76 00:03:10,440 --> 00:03:13,000 Speaker 1: Now SpaceX is really the duel in his crown. 77 00:03:13,080 --> 00:03:15,720 Speaker 2: That'd be his private space and satellite company that shoots 78 00:03:15,720 --> 00:03:18,799 Speaker 2: its Falcon rockets into space and also sends satellites into 79 00:03:18,800 --> 00:03:21,359 Speaker 2: space for its Starlink Internet. In fact, there were reports 80 00:03:21,400 --> 00:03:24,239 Speaker 2: that SpaceX generated eight billion US dollars in profit last 81 00:03:24,400 --> 00:03:27,000 Speaker 2: year on about sixteen billion dollars of revenue, and. 82 00:03:26,960 --> 00:03:29,600 Speaker 1: It's expected that SpaceX will go public at a valuation 83 00:03:29,760 --> 00:03:32,880 Speaker 1: of one point twenty five trillion US dollars later this year. 84 00:03:32,919 --> 00:03:35,320 Speaker 2: But before that, Musk has announced that SpaceX has just 85 00:03:35,400 --> 00:03:38,400 Speaker 2: acquired XAI to join together his AI, data and space 86 00:03:38,440 --> 00:03:39,480 Speaker 2: bets under the one roof. 87 00:03:39,520 --> 00:03:41,800 Speaker 1: And might I remind you that XAI also owns x 88 00:03:41,840 --> 00:03:43,360 Speaker 1: two aka Twitter, And how. 89 00:03:43,360 --> 00:03:47,720 Speaker 2: Much we talking for Musk to acquire Musk's companies. It's undisclosed. 90 00:03:47,800 --> 00:03:50,440 Speaker 2: We can only imagine how tense the negotiations with himself 91 00:03:50,480 --> 00:03:53,200 Speaker 2: must have been. Elon described the type as the next 92 00:03:53,200 --> 00:03:55,560 Speaker 2: book in his mission. But that's not just that, be man, 93 00:03:55,640 --> 00:03:58,440 Speaker 2: he said, it's all about building quote a centient sun, 94 00:03:58,680 --> 00:04:00,800 Speaker 2: whatever the hell that means to me. So what's the 95 00:04:00,840 --> 00:04:01,480 Speaker 2: key learning here? 96 00:04:01,480 --> 00:04:04,880 Speaker 1: Elon Musk doesn't really build standalone companies, He builds a web. 97 00:04:04,880 --> 00:04:08,400 Speaker 2: Instead of keeping SpaceX XAI, Tesla X, neurerlink in the 98 00:04:08,440 --> 00:04:10,240 Speaker 2: boring company operating separately. 99 00:04:09,960 --> 00:04:12,200 Speaker 1: He has a track record of stitching them together through 100 00:04:12,200 --> 00:04:13,680 Speaker 1: acquisitions and share. 101 00:04:13,440 --> 00:04:16,880 Speaker 2: Swaps and Jesse Boy Musk evangelists say this deal gives 102 00:04:16,880 --> 00:04:19,560 Speaker 2: SpaceX some powerful AI capability, as well. 103 00:04:19,400 --> 00:04:22,599 Speaker 1: As allowing engineers and data to flow between the different companies. 104 00:04:22,600 --> 00:04:26,320 Speaker 2: But the skeptics reckon this is a classic Musk move. Yeah. 105 00:04:26,400 --> 00:04:29,400 Speaker 1: He often uses his strongest, most valuable asset to acquire 106 00:04:29,400 --> 00:04:31,880 Speaker 1: his earlier stage or loss making businesses. 107 00:04:31,480 --> 00:04:34,200 Speaker 2: And by bundling them together, the weaker ones are effectively 108 00:04:34,240 --> 00:04:35,600 Speaker 2: propped up by the stronger ones. 109 00:04:35,600 --> 00:04:38,279 Speaker 1: You may remember that Musk folded Twitter Akax into his 110 00:04:38,320 --> 00:04:41,000 Speaker 1: Ai startup Xai last year through a share swap that 111 00:04:41,080 --> 00:04:43,400 Speaker 1: valued the company at thirty three billion US dollars. 112 00:04:43,400 --> 00:04:45,520 Speaker 2: In twenty sixteen, he used Tesla stock to buy his 113 00:04:45,600 --> 00:04:48,680 Speaker 2: solar energy company, Solar City, for two point six billion 114 00:04:48,760 --> 00:04:49,960 Speaker 2: US dollars. The problem is. 115 00:04:49,960 --> 00:04:52,160 Speaker 1: That this can blur performance as well as muddy the 116 00:04:52,240 --> 00:04:53,960 Speaker 1: valuations of the individual company, and. 117 00:04:53,960 --> 00:04:57,080 Speaker 2: Given SpaceX already makes eight bill in profit, it makes 118 00:04:57,120 --> 00:04:59,120 Speaker 2: it even harder for investors to know what parts of 119 00:04:59,120 --> 00:05:01,719 Speaker 2: the business are actually profitable. Yeah, for our third and 120 00:05:01,839 --> 00:05:05,120 Speaker 2: final story, Hollywood's film studios are betting the house on 121 00:05:05,240 --> 00:05:09,080 Speaker 2: sequels and superheroes. Even the franchises might not save their 122 00:05:09,120 --> 00:05:11,719 Speaker 2: box office in twenty twenty six. Big story this one, 123 00:05:11,839 --> 00:05:13,240 Speaker 2: Jaysy boy, tell me more? 124 00:05:13,279 --> 00:05:16,280 Speaker 1: Okay? So, man, we know Hollywood studios, like Disney and 125 00:05:16,320 --> 00:05:19,760 Speaker 1: Warner Bros. They have leaned heavily into familiar franchises over 126 00:05:19,800 --> 00:05:20,800 Speaker 1: the last few years. 127 00:05:20,560 --> 00:05:23,560 Speaker 2: Because known stories feel like safer bets than brand new 128 00:05:23,640 --> 00:05:24,200 Speaker 2: ideas and. 129 00:05:24,240 --> 00:05:26,840 Speaker 1: Other star wars. Maybe another toy story, give me some 130 00:05:26,839 --> 00:05:31,440 Speaker 1: more Marvel Cinematic Universe, superheroes, Deja Vous, Central, and Morat. Now, 131 00:05:31,600 --> 00:05:34,640 Speaker 1: industry experts are pretty worried that the studios may not 132 00:05:34,720 --> 00:05:37,720 Speaker 1: hit their big hairy goal of ten billion US dollars 133 00:05:37,760 --> 00:05:39,960 Speaker 1: in box office revenue this year in the US. 134 00:05:40,040 --> 00:05:42,400 Speaker 2: Yeah, two of the most anticipated movies of twenty twenty 135 00:05:42,480 --> 00:05:46,080 Speaker 2: five underperformed expectations that'd be universal as a Wicked for 136 00:05:46,160 --> 00:05:49,040 Speaker 2: Good as well as Disney's Avatar Fire and Ash. 137 00:05:48,800 --> 00:05:50,560 Speaker 1: That really got to hot the big studios. 138 00:05:50,600 --> 00:05:53,240 Speaker 2: And this is hurting because moviegoers are pickier than ever. 139 00:05:53,680 --> 00:05:54,920 Speaker 1: So what is the key learning here? 140 00:05:55,040 --> 00:05:57,560 Speaker 2: When everything is a sequel, nothing feels out special? 141 00:05:57,560 --> 00:06:00,640 Speaker 1: You see me Man? Franchises used to be Hollywood's safety net. 142 00:06:00,920 --> 00:06:03,919 Speaker 2: It makes sense studios are love familiar ip because audiences 143 00:06:04,160 --> 00:06:06,520 Speaker 2: recognize them. Yeah, and that means it lowers their marketing 144 00:06:06,520 --> 00:06:08,839 Speaker 2: costs as well as their risk because audiences know the 145 00:06:08,839 --> 00:06:11,560 Speaker 2: brand already. On top of that, it often boosts merchandise sales. 146 00:06:11,600 --> 00:06:14,200 Speaker 2: It can help things like theme parks and toy sales 147 00:06:14,240 --> 00:06:15,719 Speaker 2: and streaming spin offs as well. 148 00:06:15,760 --> 00:06:17,800 Speaker 1: Get this be Man. Since twenty ten, eight of the 149 00:06:17,839 --> 00:06:21,440 Speaker 1: ten top highest grossing films each year have been sequels, prequels, 150 00:06:21,440 --> 00:06:22,120 Speaker 1: all remakes. 151 00:06:22,160 --> 00:06:23,279 Speaker 2: It is a whole lot of marvels. 152 00:06:23,480 --> 00:06:25,960 Speaker 1: Yeah, so it may be time for movie studios to 153 00:06:25,960 --> 00:06:28,320 Speaker 1: produce a whole new raft of iconic flicks and. 154 00:06:28,240 --> 00:06:30,640 Speaker 2: Given the top ten grossing films of any given year 155 00:06:30,760 --> 00:06:33,960 Speaker 2: usually accounts for thirty percent to forty percent of total returns. Yep, 156 00:06:34,040 --> 00:06:36,120 Speaker 2: if you hit it big, it's like striking the jack 157 00:06:36,160 --> 00:06:38,080 Speaker 2: bitte give you more money man. 158 00:06:38,160 --> 00:06:40,360 Speaker 1: The big question is if Australians are broke, why are 159 00:06:40,360 --> 00:06:42,440 Speaker 1: we still spending money? And we cover it off in 160 00:06:42,480 --> 00:06:43,960 Speaker 1: the Flux app today. If you want to learn more 161 00:06:43,960 --> 00:06:46,360 Speaker 1: about the RBA's reasons or as cash rate high, can 162 00:06:46,360 --> 00:06:47,640 Speaker 1: we break it down? Make sure it down to the 163 00:06:47,680 --> 00:06:49,520 Speaker 1: Flex app to check it out. Thanks for listening and 164 00:06:49,560 --> 00:06:51,039 Speaker 1: we'll see you on Friday