Speaker 1: This is what the Flux.
Speaker 2: I'm bred and I'm justin and it's Friday, the nineteenth
Speaker 2: of July.
Speaker 1: Josie Boy, it's fair to say share markets are in
Speaker 1: their high confidence era. The ASX two hundred hit a
Speaker 1: new world record on Wednesday, cracking the eight thousand mark
Speaker 1: for the first time. And Josey Boy, that's after tech,
Speaker 1: financial services and property industries saw a big jarm. Not
Speaker 1: to mention, almost everyone reckons the US will cut interest
Speaker 1: rates in September.
Speaker 2: Not the same for Australia though, be Man, Blucks maam.
Speaker 2: We can give you a very good start to the
Speaker 2: weekend with our weekly quiz a quick Sticks. We're giving
Speaker 2: a fifty bucks to the person who get three questions
Speaker 2: correct in the Flux app today, So make sure you
Speaker 2: download the app and had your notifications turned.
Speaker 1: On three riveting stories today, Josy boy, let's do it
Speaker 1: for our first An Australian viral beauty brand, Coco and Eve,
Speaker 1: has raised one hundred million dollars from a US private
Speaker 1: equity business, which will now take a majority steak in
Speaker 1: the company.
Speaker 2: Be Man, I've got to be honest, I haven't heard
Speaker 2: of this one, So tell me what's happening here.
Speaker 1: Well. Coco and Eve is a beauty brand that was
Speaker 1: founded in Melbourne. We're talking hair products, self tanning products,
Speaker 1: shampoos as well. But dose Boy, We're not talking your
Speaker 1: run of the mill eight dollars a bottle dove.
Speaker 2: Shampoos ohn O my brand. We're talking shampoos selling for
Speaker 2: forty dollars a pop. Liquid gold some call it now.
Speaker 1: Over the past six years, Coco and Eve has managed
Speaker 1: to grow their brand rapidly, mainly through TikTok and instat.
Speaker 2: We're talking millions of followers and thousands of TikTok users
Speaker 2: doing product reviews of the brand. And now b Man,
Speaker 2: a Texan private equity company called Gauge Capital, has invested
Speaker 2: one hundred million baccaronis in Coco and E.
Speaker 1: And while we don't know the valuation, we do know
Speaker 1: that they took a majority steak in Coco.
Speaker 2: And E and be Man. This major investment continues a
Speaker 2: range of Australian beauty brand being recognized on the global stage.
Speaker 1: So what's the key learning here?
Speaker 2: Move over Korea and Japan. Australia has become the new
Speaker 2: beauty industry hotspot for years.
Speaker 1: K beauty in Korea or Jay Beauty in Japan. They've
Speaker 1: been the leaders in the skincare world, but Australian beauty
Speaker 1: has become the next in line. Can everyone please get
Speaker 1: around a beauty the man.
Speaker 2: Australian beauty products supposedly lean into that natural and sunkissed
Speaker 2: look and they don't mind dropping words like Bondi in
Speaker 2: their name either, and it's.
Speaker 1: Fair to say it's working. Juzzy boy yep.
Speaker 2: Over the past couple of years, we've seen Bondai sand
Speaker 2: salted Japan's Cow Corporation for four hundred and fifty mil
Speaker 2: Esop was acquired by Laourel for three point seven billion,
Speaker 2: and now co Co and Eve drop one hundred million
Speaker 2: dollar investment as well.
Speaker 1: The global beauty industry is expected to reach five hundred
Speaker 1: and eighty billion dollars by twenty twenty seven.
Speaker 2: So there might be a few other Ossi beauty brands
Speaker 2: to make big announcements in the future as well.
Speaker 1: For our second story, Google is looking to make its
Speaker 1: biggest acquisition ever after it announced late stage talks to
Speaker 1: acquire a cybersecurity company for twenty three billion US dollars.
Speaker 2: That's like acquiring quantas and Seek and JB, Highlight and
Speaker 2: Medibank in one foul swoop. So tell me all about
Speaker 2: this one.
Speaker 1: Well, we know Google and its parent company, Alphabet is
Speaker 1: an absolute behemoth, valued it over two point twenty five
Speaker 1: trillion US dollars.
Speaker 2: Yep, between its Google Search, It's Android operating system, Gmail,
Speaker 2: g Drive, YouTube, Google Maps, it pretty much controls our
Speaker 2: deck Lives.
Speaker 1: And now Alphabet, which is Google's parent company, has announced
Speaker 1: it is in late stage talks to acquire a company
Speaker 1: named Wiz for a casual twenty three billion US dollars.
Speaker 2: Okay, so who is this Wiz you speak about?
Speaker 1: Well, Jusi boy, it's an Israeli cybersecurity company that's only
Speaker 1: been around for just over four years.
Speaker 2: But it's fair to say it's made a serious impact
Speaker 2: in the cybersecurity space so far. It generated one hundred
Speaker 2: million dollars in annual occurring revenue in twenty twenty two.
Speaker 1: Then three hundred and fifty million dollars in annual occurring
Speaker 1: revenue by twenty twenty four, and be man.
Speaker 2: This acquisition of Wiz would help Google grow its cloud
Speaker 2: business and take some pressure offers advertising business. So what
Speaker 2: is the key learning here?
Speaker 1: Cutting edge technologies often come at the steepest of costs.
Speaker 2: You say, be man. Most of the hot new generative
Speaker 2: tools are run on the cloud.
Speaker 1: And that means many corporate clients looking to use AI
Speaker 1: are panicking about the security in the sky.
Speaker 2: Could legal documents and sales deals be lead for everyone
Speaker 2: to see? So Google's acquisition of wiz would become a
Speaker 2: strong selling point for Google in its strategy to become
Speaker 2: a cloud leader. Because let's be honest. Right now, Google
Speaker 2: Cloud plays third fiddle in the cloud computing.
Speaker 1: Space, behind both Amazon with thirty one percent of the
Speaker 1: market and.
Speaker 2: Then Microsoft with twenty five percent of the market.
Speaker 1: Google Cloud trailing all the way behind it just eleven
Speaker 1: percent market share.
Speaker 2: And the global cloud infrastructure market is currently generating more
Speaker 2: than three hundred billion dollars in revenue peranna.
Speaker 1: And growing twenty one percent per year. Might I add, so.
Speaker 2: It's fair to say it is a space that Google
Speaker 2: wants to own.
Speaker 1: For our third and final story, in Vidia and other
Speaker 1: AI chip makers have seen their share prices plummet after
Speaker 1: Donald Trump's latest comments on the chip industry in Taiwan.
Speaker 2: Tell you, right, if anyone's going to shake the stock market,
Speaker 2: you can bet it'll be Donald Trump, So what is
Speaker 2: the story here?
Speaker 1: In Vidia is the computer chip designing company that was
Speaker 1: founded in nineteen ninety three and has recently become the
Speaker 1: backbone of the AI industry.
Speaker 2: In the last twelve months, in Video share price has
Speaker 2: jumped almost one hundred and fifty.
Speaker 1: And for a while it held the title of the
Speaker 1: world's most valuable company, all thanks to this AI boom.
Speaker 2: But now be Man in Video and other AI chip
Speaker 2: makers in Taiwan have seen the share prices drop between
Speaker 2: three and eleven percent.
Speaker 1: Now you pretty clued in. What's the reason here?
Speaker 2: Well, Donald Trump made comments about Taiwan, one of the
Speaker 2: world's biggest AI chip exporters.
Speaker 1: And what were these comments?
Speaker 2: Juzzy boy, he said, Taiwan took our chip business from US.
Speaker 2: I mean, how stupid are we?
Speaker 1: Next minute, in Vidia's share price drops six point six percent,
Speaker 1: wiping over two hundred billion US dollars off its market cap.
Speaker 2: And be men As unbeatable as the AI industry looks,
Speaker 2: it turns out just a couple of choice words from
Speaker 2: Trump sends the whole industry into a frenzy crazy So
Speaker 2: what is the key learning here? No industry is bulletproof
Speaker 2: when it interacts with politics.
Speaker 1: We know, Juzzy Boy, that comments by politicians have the
Speaker 1: power to shift market expectations and influence industries.
Speaker 2: And we know as well that investors react very quickly
Speaker 2: to how they think political decisions might impact their investments.
Speaker 1: And also fair to say that reaction are heightened in
Speaker 1: the lead up to an election.
Speaker 2: Yeah, and given AI such a hot topic right now,
Speaker 2: it's also one of the most exposed industries when it
Speaker 2: comes to geopolitical conflicts.
Speaker 1: And Johnson boyit this isn't the first time Old Trumpell
Speaker 1: Stiltskin has impacted the share market with his comments. Yep.
Speaker 2: According to research by Northeastern University, when Trump is tweeted
Speaker 2: about a company, there's a short term increase in trading
Speaker 2: volume for that company stock.
Speaker 1: Whether that be a selloff or a doubling down on
Speaker 1: that investment.
Speaker 2: But thankfully for companies like in video, this time, companies
Speaker 2: generally see volumes and stock prices return to their pre
Speaker 2: Trump tweet levels. Fox Sam, if you want to start
Speaker 2: your weekend on a high with fifty bucks in your
Speaker 2: front pocket, there is one simple thing to do. Make
Speaker 2: sure you've downloaded the Flux app and you've got your
Speaker 2: notifications turned on to win quick six today.
Speaker 1: Thanks for listening, and we'll see you on Monday.