1
00:00:05,200 --> 00:00:07,880
Speaker 1: This is what the Flux I'm brand aren't justin And

2
00:00:08,000 --> 00:00:09,120
Speaker 1: it's Friday, the fourth of.

3
00:00:09,039 --> 00:00:12,680
Speaker 2: October, douzyboy. The annual rate of retail spending jumped more

4
00:00:12,720 --> 00:00:16,400
Speaker 2: than three percent in August, a result that really nobody expected.

5
00:00:16,480 --> 00:00:18,440
Speaker 2: But there is a reason behind this result, my friend.

6
00:00:18,480 --> 00:00:22,320
Speaker 2: It was the warmest August nationally since nineteen ten, if

7
00:00:22,360 --> 00:00:24,880
Speaker 2: you don't mind. And as a result, summer merch was

8
00:00:24,920 --> 00:00:27,880
Speaker 2: on the shelves and then quickly off the shelves as well.

9
00:00:27,960 --> 00:00:30,800
Speaker 1: Actually, update statman a flexim did you know that September

10
00:00:30,880 --> 00:00:33,600
Speaker 1: was the best performing September in over a decade on

11
00:00:33,640 --> 00:00:35,400
Speaker 1: the share market in Australia. And if you still have

12
00:00:35,479 --> 00:00:37,199
Speaker 1: no idea how to get into the share market, what

13
00:00:37,280 --> 00:00:39,960
Speaker 1: to do? We have the Flex Academy this month dedicated

14
00:00:40,000 --> 00:00:42,360
Speaker 1: to investing in the share market, how to buy and sell,

15
00:00:42,479 --> 00:00:44,800
Speaker 1: what your investing strategy should be, and also how to

16
00:00:44,840 --> 00:00:46,960
Speaker 1: manage your portfolio. It's at thanks to our partnership with

17
00:00:47,080 --> 00:00:48,600
Speaker 1: Rays and if you want to check it out this month,

18
00:00:48,640 --> 00:00:50,720
Speaker 1: there are big prizes on offer. Make sure to download

19
00:00:50,720 --> 00:00:52,360
Speaker 1: the Flux app and check out the academy.

20
00:00:52,479 --> 00:00:56,240
Speaker 2: Three very educational stories today, Dozy boy, let's do it

21
00:00:56,280 --> 00:01:00,680
Speaker 2: for our first. SPC, the Aussie canned fruit and veg producer,

22
00:01:00,760 --> 00:01:04,679
Speaker 2: has finalized a three way merger with Original Juice Company

23
00:01:04,720 --> 00:01:05,920
Speaker 2: and Nature One Dairy.

24
00:01:06,040 --> 00:01:08,240
Speaker 1: Geez, not often you hear about a three way corporate

25
00:01:08,240 --> 00:01:11,560
Speaker 1: marriage here, b man, no very polygamous of them.

26
00:01:11,400 --> 00:01:15,080
Speaker 2: So tell me more well. SBC Global was founded in

27
00:01:15,240 --> 00:01:18,320
Speaker 2: nineteen seventeen and specializes in food manufacturing.

28
00:01:18,319 --> 00:01:20,600
Speaker 1: You know those iconic little dist fruit salents that every

29
00:01:20,640 --> 00:01:22,080
Speaker 1: primary school kid has in the larch.

30
00:01:22,000 --> 00:01:25,479
Speaker 2: Box, YEP and Jazi boy. These little fruit packs helped

31
00:01:25,600 --> 00:01:28,440
Speaker 2: SPC generate two hundred and seventy one million dollars in

32
00:01:28,440 --> 00:01:30,440
Speaker 2: revenue for the twenty twenty four financial year.

33
00:01:30,520 --> 00:01:33,440
Speaker 1: In comparison, Original Juice Company had about forty nine mel

34
00:01:33,560 --> 00:01:36,320
Speaker 1: in revenue and the powdered milk maker Nature One Dairy.

35
00:01:36,080 --> 00:01:38,600
Speaker 2: Posted around forty six meal Now, Jose Boy, the three

36
00:01:38,640 --> 00:01:41,679
Speaker 2: companies are merging into one bigger beast. Now.

37
00:01:41,680 --> 00:01:45,360
Speaker 1: According to SBC, this merged company is all about maximizing

38
00:01:45,440 --> 00:01:46,399
Speaker 1: the unique strength to.

39
00:01:46,360 --> 00:01:50,160
Speaker 2: Achieve spc's globble vision Yep. Now SBC is going to

40
00:01:50,200 --> 00:01:53,320
Speaker 2: provide Original Juice with some extra manufacturing capacities.

41
00:01:53,320 --> 00:01:55,280
Speaker 1: It's going to be a bigger distribution network so they

42
00:01:55,280 --> 00:01:56,520
Speaker 1: can expand.

43
00:01:56,120 --> 00:01:58,480
Speaker 2: And old Nature one Dairy They're going to give their

44
00:01:58,520 --> 00:02:02,320
Speaker 2: new partner companies access to exporting so they can export

45
00:02:02,400 --> 00:02:03,440
Speaker 2: to Asian customers.

46
00:02:03,560 --> 00:02:06,400
Speaker 1: Ultimately, b Man, this means SBC is one giant step

47
00:02:06,400 --> 00:02:10,079
Speaker 1: closer to achieving their global company they've really been striving for.

48
00:02:10,240 --> 00:02:12,760
Speaker 2: They want to build the nestlay of Australia, if you

49
00:02:12,760 --> 00:02:14,760
Speaker 2: don't mind, Jusie boy very bold. So what is the

50
00:02:14,840 --> 00:02:16,800
Speaker 2: key learning here? When it comes to going global in

51
00:02:16,840 --> 00:02:19,920
Speaker 2: an aggressive way, It's important to pick the right product mix.

52
00:02:20,000 --> 00:02:22,680
Speaker 1: You see, b Man, SBC has rush delicious ambitions of

53
00:02:22,800 --> 00:02:25,200
Speaker 1: entering into Asia Pacific, then up to the Middle East

54
00:02:25,240 --> 00:02:26,240
Speaker 1: and then to Europe.

55
00:02:26,240 --> 00:02:29,360
Speaker 2: And this deal has quote unquote synergies written all over it.

56
00:02:29,400 --> 00:02:32,400
Speaker 1: Yeah, approximately ninety five percent of Nature one Dairies products

57
00:02:32,440 --> 00:02:36,280
Speaker 1: assault in pharmacies in Asian markets across thirteen countries.

58
00:02:35,880 --> 00:02:39,040
Speaker 2: And so SBC and therefore original juice company they want

59
00:02:39,080 --> 00:02:40,480
Speaker 2: to take advantage of this and be Man.

60
00:02:40,520 --> 00:02:44,000
Speaker 1: This expansion overseas could potentially offset some of the challenges

61
00:02:44,000 --> 00:02:46,799
Speaker 1: that SPC has faced in Australia. This three way merger

62
00:02:46,960 --> 00:02:49,680
Speaker 1: is now expected to generate four hundred million bucks in

63
00:02:49,720 --> 00:02:51,560
Speaker 1: revenue and more than twenty nine mili in.

64
00:02:51,520 --> 00:02:54,720
Speaker 2: Earnings and suddenly SPC is the best chance we've got

65
00:02:54,840 --> 00:02:57,920
Speaker 2: in Australia to achieve our very own Nesley. So true

66
00:02:57,960 --> 00:03:01,640
Speaker 2: for our second story, Character one of the leaders in AI,

67
00:03:01,800 --> 00:03:04,440
Speaker 2: is ditching its plans to make AI models after its

68
00:03:04,440 --> 00:03:07,280
Speaker 2: founders were poached by Google more than two point seven

69
00:03:07,400 --> 00:03:10,320
Speaker 2: billion US dollars. Yep, Character ai has really been thrown

70
00:03:10,360 --> 00:03:12,200
Speaker 2: under the bus. So I want to know what's going on,

71
00:03:12,280 --> 00:03:13,040
Speaker 2: Josey boy okay. So.

72
00:03:13,120 --> 00:03:15,560
Speaker 1: Character ai is an AI chatbot that was started up

73
00:03:15,600 --> 00:03:18,040
Speaker 1: by an ex Google developer back in twenty twenty one.

74
00:03:18,160 --> 00:03:21,160
Speaker 2: The service that simulates conversations with characters that you can

75
00:03:21,200 --> 00:03:24,600
Speaker 2: design and also celebrities. And I'm talking text and voice, so.

76
00:03:24,600 --> 00:03:26,600
Speaker 1: B man, if you really wanted an your big fan,

77
00:03:26,760 --> 00:03:29,280
Speaker 1: you could ask Gandal for some life advice.

78
00:03:29,040 --> 00:03:31,480
Speaker 2: That's huge for me, or jose boit you could ask Voldemort,

79
00:03:31,520 --> 00:03:33,959
Speaker 2: your hero, why he was so obsessed with taking down

80
00:03:34,000 --> 00:03:36,040
Speaker 2: a teenage boy. Straight, very good.

81
00:03:35,920 --> 00:03:38,800
Speaker 1: Question, now, mean man. Originally, Character ai was building its

82
00:03:38,800 --> 00:03:41,400
Speaker 1: own large language model for its product, but now it's

83
00:03:41,400 --> 00:03:44,280
Speaker 1: decided to abandon building AI models and instead is going

84
00:03:44,320 --> 00:03:46,360
Speaker 1: to focus on improving its chat bok and this is

85
00:03:46,360 --> 00:03:49,280
Speaker 1: after Google made a deal with character Ai for one

86
00:03:49,320 --> 00:03:51,880
Speaker 1: time license to its tech and its founders came away

87
00:03:51,880 --> 00:03:54,000
Speaker 1: with a two point seven billion US dollar deal.

88
00:03:54,000 --> 00:03:55,880
Speaker 2: And Jesse, wait, why did they take this deal with

89
00:03:55,920 --> 00:03:57,640
Speaker 2: so much hype around the product? Good question.

90
00:03:57,920 --> 00:04:01,360
Speaker 1: They said that building models is insanely expensive for a startup.

91
00:04:01,400 --> 00:04:05,360
Speaker 2: Meanwhile, tech giants like Microsoft, Google, they are splashing their

92
00:04:05,520 --> 00:04:07,840
Speaker 2: hundreds of billions of dollars to get ahead in this

93
00:04:07,880 --> 00:04:10,440
Speaker 2: AI race. So what is the key learning here? Innovation

94
00:04:10,520 --> 00:04:12,480
Speaker 2: pays off for those who can afford it.

95
00:04:12,560 --> 00:04:15,240
Speaker 1: You see me, man, tech giants like Google, Microsoft, Apple,

96
00:04:15,280 --> 00:04:17,159
Speaker 1: they're sitting on a lot of cash.

97
00:04:17,279 --> 00:04:21,360
Speaker 2: We'd be talking around four hundred billion dollars in cash collectively,

98
00:04:21,440 --> 00:04:22,040
Speaker 2: which makes it.

99
00:04:22,000 --> 00:04:23,960
Speaker 1: A lot easier for them to stay ahead of the curb.

100
00:04:24,040 --> 00:04:26,560
Speaker 1: With innovation, they can continue pumping money into R and

101
00:04:26,680 --> 00:04:28,120
Speaker 1: D without thinking twice.

102
00:04:28,240 --> 00:04:32,120
Speaker 2: On the other hand, startups like character Ai have restrictive budgets, which.

103
00:04:31,960 --> 00:04:33,600
Speaker 1: Means they tend to run out of cash or get

104
00:04:33,600 --> 00:04:35,680
Speaker 1: acquired by one of the bigger players. And the man,

105
00:04:35,720 --> 00:04:37,600
Speaker 1: it kind of reminds me of what happened with Pebble,

106
00:04:37,680 --> 00:04:39,360
Speaker 1: that smart watch company back in the day.

107
00:04:39,480 --> 00:04:41,760
Speaker 2: Oh right, I remember Jasi Void Pebble was one of

108
00:04:41,839 --> 00:04:44,440
Speaker 2: the first players in this smart watch space.

109
00:04:44,200 --> 00:04:46,240
Speaker 1: But by twenty sixteen, it's sold a fit bit for

110
00:04:46,360 --> 00:04:48,920
Speaker 1: just forty million US dollars because it struggled to keep

111
00:04:48,960 --> 00:04:51,600
Speaker 1: up with smart watches that were made by Google and Apple.

112
00:04:51,839 --> 00:04:54,560
Speaker 2: Seems like the cycle of tech giants leading innovation will

113
00:04:54,640 --> 00:04:55,279
Speaker 2: just continue.

114
00:04:55,360 --> 00:04:58,320
Speaker 1: For our third and final story, Origin Energy has seen

115
00:04:58,360 --> 00:05:01,400
Speaker 1: its share price drop after REVI It's going to abandon

116
00:05:01,440 --> 00:05:03,640
Speaker 1: its plans to develop hydrogen energy.

117
00:05:03,720 --> 00:05:07,200
Speaker 2: Hydrogen energy running out of a bit of steam. Sadly here,

118
00:05:07,279 --> 00:05:08,320
Speaker 2: jussy boy go on.

119
00:05:08,600 --> 00:05:11,480
Speaker 1: Origin Energy is the electricity and gas provider over four

120
00:05:11,520 --> 00:05:13,400
Speaker 1: and a half million Australian customers.

121
00:05:13,560 --> 00:05:15,880
Speaker 2: Yep, the same very providers that send you a five

122
00:05:15,960 --> 00:05:19,359
Speaker 2: hundred dollar bill when you freezed through the entire winter.

123
00:05:19,600 --> 00:05:22,039
Speaker 2: So true you see, juzy boy. Back in twenty twenty two,

124
00:05:22,120 --> 00:05:25,360
Speaker 2: Origin announced plans for a potential hydrogen project in the

125
00:05:25,400 --> 00:05:26,880
Speaker 2: Hunter Valley of New South Wales and.

126
00:05:26,839 --> 00:05:30,320
Speaker 1: If successful, they would start to produce hydrogen, a renewable energy.

127
00:05:30,440 --> 00:05:31,800
Speaker 1: By twenty twenty six.

128
00:05:31,640 --> 00:05:34,280
Speaker 2: It's sadly Origin warned that it will be abandoning its

129
00:05:34,360 --> 00:05:35,400
Speaker 2: hydrogen ventures.

130
00:05:35,520 --> 00:05:36,680
Speaker 1: And what was the reason for this? One?

131
00:05:36,680 --> 00:05:39,400
Speaker 2: B man, Well, it's pretty simple. Juzzy Boy, too expensive

132
00:05:39,400 --> 00:05:41,159
Speaker 2: and costly to continue pursuing this one.

133
00:05:41,200 --> 00:05:43,479
Speaker 1: And I must say this is a pretty big blow

134
00:05:43,520 --> 00:05:45,000
Speaker 1: for the federal government as well.

135
00:05:45,160 --> 00:05:47,279
Speaker 2: Yep. They were hoping that Origin would become one of

136
00:05:47,279 --> 00:05:51,120
Speaker 2: the pioneers in this transition to renewable power here in Australia.

137
00:05:51,200 --> 00:05:51,400
Speaker 1: Yep.

138
00:05:51,400 --> 00:05:54,160
Speaker 2: And despite all the government subsidies and the incentives for

139
00:05:54,279 --> 00:05:58,400
Speaker 2: hydrogen producers, it's still couldn't convince Origin to build the facility.

140
00:05:58,480 --> 00:06:01,520
Speaker 2: Interesting not strong on the old convincing side of things.

141
00:06:01,520 --> 00:06:02,680
Speaker 2: So what is the key learning here?

142
00:06:02,760 --> 00:06:06,160
Speaker 1: Unlocking innovative technology is one thing, but making it commercially

143
00:06:06,279 --> 00:06:07,360
Speaker 1: viable is another.

144
00:06:07,560 --> 00:06:10,279
Speaker 2: Yep. Now, hydrogen was considered to be the solution to

145
00:06:10,440 --> 00:06:13,920
Speaker 2: decarbonization and a transition to renewable energy, but Joey Boy

146
00:06:14,080 --> 00:06:16,720
Speaker 2: sadly turning into a pretty big commercial bust.

147
00:06:16,800 --> 00:06:19,640
Speaker 1: And that's because it's costing a pretty penny to get

148
00:06:19,680 --> 00:06:21,320
Speaker 1: cardridg and scalable and joy boy.

149
00:06:21,360 --> 00:06:24,000
Speaker 2: Origin isn't the only energy company to pull the pin yep.

150
00:06:24,080 --> 00:06:27,200
Speaker 1: Ford Eskew had a green hydrogen initiative, but it accumulated

151
00:06:27,240 --> 00:06:30,240
Speaker 1: over two billion dollars in losses with nothing to show

152
00:06:30,240 --> 00:06:30,680
Speaker 1: for it.

153
00:06:30,640 --> 00:06:32,440
Speaker 2: So they pulled the pin as well and.

154
00:06:32,400 --> 00:06:35,360
Speaker 1: Be man while cutting out technology. The battles climate change

155
00:06:35,440 --> 00:06:38,640
Speaker 1: sounds exciting, shareholders are sadly only willing to wait so

156
00:06:38,720 --> 00:06:40,000
Speaker 1: long to see the results.

157
00:06:40,080 --> 00:06:40,479
Speaker 2: Buckspam.

158
00:06:40,600 --> 00:06:42,800
Speaker 1: We always talk about different companies who share prices are

159
00:06:42,800 --> 00:06:44,480
Speaker 1: gone up, gone down on the pod. But if you

160
00:06:44,480 --> 00:06:46,280
Speaker 1: want to learn more about how you can invest in

161
00:06:46,320 --> 00:06:48,919
Speaker 1: these companies, it all starts in the Flux Academy. This

162
00:06:49,040 --> 00:06:50,920
Speaker 1: month we talk about how to buy and sell shares,

163
00:06:51,000 --> 00:06:52,840
Speaker 1: what analysis you need to do, and also how to

164
00:06:52,880 --> 00:06:53,880
Speaker 1: manage your portfolio.

165
00:06:53,920 --> 00:06:56,440
Speaker 2: Thanks for listening and we'll see you on Monday