1
00:00:05,280 --> 00:00:06,680
Speaker 1: This is what the Flux.

2
00:00:06,760 --> 00:00:09,320
Speaker 2: I'm Brett and Justin and it's Monday, the twenty eighth

3
00:00:09,320 --> 00:00:09,840
Speaker 2: to October.

4
00:00:09,960 --> 00:00:11,800
Speaker 3: Jusey boy, it is not a good time to be

5
00:00:11,840 --> 00:00:15,239
Speaker 3: an office in CBDs around Australia right now because you

6
00:00:15,320 --> 00:00:16,360
Speaker 3: may not be getting a lot of love.

7
00:00:16,440 --> 00:00:17,000
Speaker 1: Get this one.

8
00:00:17,040 --> 00:00:20,040
Speaker 3: The national CBD vacancy rate is still fifteen point one

9
00:00:20,040 --> 00:00:23,880
Speaker 3: percent across Australia and the biggest culprit is you Melbourne CBD,

10
00:00:24,040 --> 00:00:27,040
Speaker 3: which now hit a vacancy rate of nineteen point eight percent.

11
00:00:27,200 --> 00:00:28,920
Speaker 1: Ghost count alert yep Sadam.

12
00:00:29,000 --> 00:00:31,160
Speaker 2: If you're feeling stuck at the starting line of your

13
00:00:31,200 --> 00:00:33,760
Speaker 2: investing journey, do not worry because we have got you.

14
00:00:33,840 --> 00:00:36,199
Speaker 2: This month, we're partnering with Rays to roll out our

15
00:00:36,280 --> 00:00:39,080
Speaker 2: Academy course Understanding the Share Market, where we break down

16
00:00:39,200 --> 00:00:42,440
Speaker 2: share buying risk tolerances and also unlock the secrets of

17
00:00:42,479 --> 00:00:44,400
Speaker 2: ets and the most exciting part. If you're at the

18
00:00:44,400 --> 00:00:46,479
Speaker 2: top of the leaderboard at the end of this month's academy,

19
00:00:46,560 --> 00:00:48,800
Speaker 2: you will get one hundred and fifty dollars bunded into

20
00:00:48,800 --> 00:00:51,320
Speaker 2: your rai's investment accounts. Make sure to download the Flux

21
00:00:51,320 --> 00:00:53,640
Speaker 2: app and check out the academy this month three.

22
00:00:53,720 --> 00:00:56,520
Speaker 3: Truly remarkable stories today, juzzy Boy, let's do it for

23
00:00:56,720 --> 00:00:59,520
Speaker 3: our first. Meta is planning to roll out new facial

24
00:00:59,600 --> 00:01:04,520
Speaker 3: recognition technology to stop celebrity impersonations that are scamming Australians

25
00:01:04,560 --> 00:01:05,880
Speaker 3: out of billions per year.

26
00:01:05,959 --> 00:01:09,160
Speaker 2: Koshy Tweety Forests, Barefoot Investor. They almost be feeling quite

27
00:01:09,200 --> 00:01:10,920
Speaker 2: relieved right now, So tell me more.

28
00:01:11,000 --> 00:01:13,559
Speaker 3: Well, we all know Meta, formerly known as Facebook, as

29
00:01:13,600 --> 00:01:16,280
Speaker 3: the social media giant that owns Instagram, WhatsApp and of

30
00:01:16,280 --> 00:01:17,600
Speaker 3: course Facebook and Juzzy Boy.

31
00:01:17,640 --> 00:01:18,800
Speaker 1: Don't you dare forget threads.

32
00:01:18,840 --> 00:01:21,199
Speaker 2: I don't know, I'm trying to forget it now. Meta

33
00:01:21,240 --> 00:01:24,240
Speaker 2: seems to be constantly battling some kind of controversy.

34
00:01:24,319 --> 00:01:25,000
Speaker 1: Yep, juzzy Boy.

35
00:01:25,080 --> 00:01:27,160
Speaker 3: Turns out they've got another battle on their hands, and

36
00:01:27,200 --> 00:01:31,160
Speaker 3: we're talking celebrity scam ads. Scammers have been using familiar

37
00:01:31,200 --> 00:01:36,119
Speaker 3: faces to lure people into million dollar investments. Think Andrew Forrest, Gina,

38
00:01:36,200 --> 00:01:39,680
Speaker 3: Ryan hart Koschi, even old Guy Sebastian and be Man.

39
00:01:39,800 --> 00:01:43,240
Speaker 2: These ads often take the Meta users to malicious websites

40
00:01:43,280 --> 00:01:45,679
Speaker 2: where they're scammed and supposedly, Juzzy Boy, these ads have

41
00:01:45,720 --> 00:01:48,559
Speaker 2: been difficult for Meta to actually detect, so now, Meta's

42
00:01:48,600 --> 00:01:51,240
Speaker 2: rolling out new technology that will identify when the ad

43
00:01:51,280 --> 00:01:53,440
Speaker 2: contains the image of a celeb's face.

44
00:01:53,520 --> 00:01:54,160
Speaker 1: How about this one.

45
00:01:54,200 --> 00:01:57,200
Speaker 3: Over about six months to December twenty twenty three, seventeen

46
00:01:57,400 --> 00:02:00,920
Speaker 3: hundred new fraudulent ads were posted on Facebook.

47
00:02:00,480 --> 00:02:02,520
Speaker 2: And ten to fifteen of them we're using images of

48
00:02:02,600 --> 00:02:03,840
Speaker 2: Andrew Twiggyboris.

49
00:02:04,880 --> 00:02:07,840
Speaker 3: Given metas ads business generates about ninety nine percent of

50
00:02:07,880 --> 00:02:10,760
Speaker 3: its revenue, it needs to take these threats pretty pretty,

51
00:02:10,840 --> 00:02:12,080
Speaker 3: pretty seriously.

52
00:02:12,280 --> 00:02:13,560
Speaker 1: So what is the key learning here?

53
00:02:13,639 --> 00:02:16,720
Speaker 3: When your business model starts turning into a commercial crime scene,

54
00:02:16,800 --> 00:02:20,080
Speaker 3: it's time to clean things up or risk losing a lot.

55
00:02:20,480 --> 00:02:23,200
Speaker 2: Man. Scammers are not only using Meta's ad tech to

56
00:02:23,240 --> 00:02:26,840
Speaker 2: run their scams, they're also leveraging metas ad targeting to

57
00:02:26,919 --> 00:02:30,040
Speaker 2: reach just the right audience, all thanks to metas finally

58
00:02:30,160 --> 00:02:31,160
Speaker 2: tuned algorithm.

59
00:02:31,200 --> 00:02:32,240
Speaker 1: How about this one? Jazy Boy.

60
00:02:32,240 --> 00:02:35,560
Speaker 3: Australian's lost two point seventy four billion dollars to scams

61
00:02:35,600 --> 00:02:38,000
Speaker 3: in twenty twenty three, according to ACIK. But if this

62
00:02:38,080 --> 00:02:40,600
Speaker 3: wasn't bad enough, there's maybe one more reason why Meta

63
00:02:40,639 --> 00:02:41,960
Speaker 3: feels compelled to act right now.

64
00:02:42,040 --> 00:02:42,239
Speaker 1: Yep.

65
00:02:42,280 --> 00:02:45,160
Speaker 2: In July this year, Andrew twiggybrus took Meta to court

66
00:02:45,280 --> 00:02:47,280
Speaker 2: about the scams with his face on them.

67
00:02:47,160 --> 00:02:50,000
Speaker 3: And the court said that maybe Meta is liable for

68
00:02:50,120 --> 00:02:52,320
Speaker 3: allowing forgulent ads appearing on its platform.

69
00:02:52,360 --> 00:02:54,400
Speaker 2: And given the majority of metas one hundred and thirty

70
00:02:54,400 --> 00:02:56,959
Speaker 2: four billion US dollars is tied to this ad platform,

71
00:02:57,000 --> 00:02:58,920
Speaker 2: it kind of feels like it might be worth addressing

72
00:02:59,040 --> 00:02:59,399
Speaker 2: right now.

73
00:03:00,080 --> 00:03:01,440
Speaker 1: Or our second story.

74
00:03:01,600 --> 00:03:04,600
Speaker 3: McDonald's is in damage control after more than seventy five

75
00:03:04,639 --> 00:03:07,160
Speaker 3: people have had food poisoning from its burgers over the

76
00:03:07,200 --> 00:03:09,840
Speaker 3: last week, and its share price has dropped over seven percent.

77
00:03:10,040 --> 00:03:12,400
Speaker 2: Macca's Golden arches, the big back itself is in a

78
00:03:12,440 --> 00:03:14,720
Speaker 2: bit of a pickle here, b man, So tell me more.

79
00:03:14,639 --> 00:03:14,920
Speaker 1: All right.

80
00:03:14,960 --> 00:03:18,480
Speaker 3: So McDonald's aka Mackide, the land of the mcflurry and

81
00:03:18,560 --> 00:03:20,519
Speaker 3: home of the McNugget, needs no introduction.

82
00:03:20,639 --> 00:03:21,040
Speaker 1: That's true.

83
00:03:21,080 --> 00:03:24,480
Speaker 2: Since nineteen forty been slinging burgers and fries to billions

84
00:03:24,480 --> 00:03:26,360
Speaker 2: of people in over one hundred countries.

85
00:03:26,400 --> 00:03:28,760
Speaker 3: But now Josie Boy quarter Pounders have sent their share

86
00:03:28,800 --> 00:03:31,760
Speaker 3: price tumbling away. There has been a potential E Coli

87
00:03:31,919 --> 00:03:34,360
Speaker 3: outbreak linked to their quarter pounders in the US.

88
00:03:34,480 --> 00:03:36,400
Speaker 2: Yeah they reckon the I Cola was either in the

89
00:03:36,440 --> 00:03:39,280
Speaker 2: beef all the onions of the quarter pounder burghers.

90
00:03:39,040 --> 00:03:40,960
Speaker 3: And there have been more than seventy five cases of

91
00:03:40,960 --> 00:03:43,320
Speaker 3: the infection, including one death and be Man.

92
00:03:43,440 --> 00:03:46,360
Speaker 2: This news has spooked investors and Macca's share price has

93
00:03:46,440 --> 00:03:47,600
Speaker 2: dropped seven percent.

94
00:03:47,720 --> 00:03:49,920
Speaker 3: And Josie Boy, the home of the McNugget, has already

95
00:03:49,960 --> 00:03:52,360
Speaker 3: been struggling with declining sales in recent years. So this

96
00:03:52,400 --> 00:03:54,760
Speaker 3: outbreak couldn't have come at a worse time. Very true,

97
00:03:54,800 --> 00:03:57,480
Speaker 3: So what is the key learning here? In the hospitality industry?

98
00:03:57,600 --> 00:04:00,840
Speaker 3: One big food mistake can leave a very taste in

99
00:04:00,920 --> 00:04:02,800
Speaker 3: the mouth of investors and customers.

100
00:04:03,040 --> 00:04:06,240
Speaker 2: Maccus doesn't only face brand and reputational risk, but it

101
00:04:06,280 --> 00:04:08,600
Speaker 2: also faces significant financial risk.

102
00:04:08,720 --> 00:04:11,880
Speaker 3: YEP, one of the affected customers, has already sued MACS

103
00:04:11,880 --> 00:04:14,680
Speaker 3: for fifty thousand US dollars for negligence.

104
00:04:14,160 --> 00:04:16,400
Speaker 2: And be Man remembered happened to the US fast food

105
00:04:16,440 --> 00:04:17,800
Speaker 2: Mexican chain at Chipotley.

106
00:04:17,920 --> 00:04:20,360
Speaker 3: I actually do it have an E Colli outbreak in

107
00:04:20,400 --> 00:04:23,040
Speaker 3: about twenty fifteen and are lost over twenty percent in

108
00:04:23,120 --> 00:04:25,599
Speaker 3: sales and forty five percent of its hap price.

109
00:04:25,360 --> 00:04:25,720
Speaker 1: And be Man.

110
00:04:25,839 --> 00:04:28,440
Speaker 2: Chipotley has bounced back from the debacle, but it took

111
00:04:28,560 --> 00:04:30,640
Speaker 2: years to rebuild trust with its customers.

112
00:04:30,680 --> 00:04:33,920
Speaker 3: So now Macas is scrambling like an egg McMuffin in

113
00:04:33,960 --> 00:04:36,880
Speaker 3: the fryar to reassure fans and investors that it's burgers

114
00:04:36,920 --> 00:04:38,240
Speaker 3: are still good and it's.

115
00:04:38,120 --> 00:04:41,839
Speaker 2: Hoping it can dodge the major reputational hit that Chipotle faced.

116
00:04:42,000 --> 00:04:45,119
Speaker 3: For our third and final story, the owner of Coach

117
00:04:45,240 --> 00:04:49,000
Speaker 3: and Kate Spade named Tapestry, has been blocked from acquiring

118
00:04:49,040 --> 00:04:51,479
Speaker 3: the owner of Michael Kors by US authority.

119
00:04:51,600 --> 00:04:54,240
Speaker 2: Sometimes this love match isn't meant to be. So what

120
00:04:54,400 --> 00:04:55,840
Speaker 2: is the story here, Well, Josy Boy.

121
00:04:55,880 --> 00:04:59,240
Speaker 3: Tapestry is an American fashion conglomerate which owns major brands

122
00:04:59,240 --> 00:05:01,360
Speaker 3: like Coach, Kate Spade, Stuart Whitzman.

123
00:05:01,560 --> 00:05:04,560
Speaker 2: Tapestry was originally called Coach and it's been around since

124
00:05:04,680 --> 00:05:05,760
Speaker 2: nineteen forty one.

125
00:05:05,839 --> 00:05:07,920
Speaker 3: And then we've got Capri, which is also a fashion

126
00:05:07,920 --> 00:05:11,640
Speaker 3: conglomerate and owns brands like Michael Cores, Vasacei and Jimmy Choo.

127
00:05:11,520 --> 00:05:12,080
Speaker 1: Now be Man.

128
00:05:12,240 --> 00:05:15,039
Speaker 2: Last year, Tapestry had agreed to acquire Capri in a

129
00:05:15,080 --> 00:05:17,680
Speaker 2: thirteen billion US dollar mega deal, but.

130
00:05:17,680 --> 00:05:20,279
Speaker 3: Now the US federal court has blocked this acquisition.

131
00:05:20,360 --> 00:05:24,000
Speaker 2: They reckon this acquisition would reduce competition in the accessible

132
00:05:24,080 --> 00:05:25,279
Speaker 2: luxury handbag market.

133
00:05:25,320 --> 00:05:27,800
Speaker 3: That's because if the acquisition were to go through, Tapestry

134
00:05:27,800 --> 00:05:30,400
Speaker 3: would own fifty nine percent of the accessible luxury handbag

135
00:05:30,440 --> 00:05:30,960
Speaker 3: market and it.

136
00:05:30,880 --> 00:05:33,600
Speaker 2: Would be able to raise prices, which would harm consumers

137
00:05:33,680 --> 00:05:34,320
Speaker 2: the judgy boy.

138
00:05:34,360 --> 00:05:37,880
Speaker 3: Surprise, surprise, Tapestry and Capri disagree. They're planning to appeal

139
00:05:37,880 --> 00:05:39,840
Speaker 3: the verdict to get the deal over the line and

140
00:05:39,839 --> 00:05:40,200
Speaker 3: be Man.

141
00:05:40,320 --> 00:05:43,080
Speaker 2: This court ruling is especially tough on Capri, which has

142
00:05:43,120 --> 00:05:46,320
Speaker 2: been struggling for years to turn around its Michael Core's brand.

143
00:05:46,400 --> 00:05:49,080
Speaker 3: Once a luxury brand goes mainstream, it's really not easy

144
00:05:49,080 --> 00:05:49,560
Speaker 3: to reverse.

145
00:05:49,600 --> 00:05:51,680
Speaker 1: That so true, So what is the key learning here?

146
00:05:51,760 --> 00:05:54,680
Speaker 3: Well, cats may have nine lives, but to luxury brands,

147
00:05:54,680 --> 00:05:55,880
Speaker 3: often they only get one.

148
00:05:55,920 --> 00:05:58,760
Speaker 1: Juzzy boy, see be Man. Luxury brands gain their status

149
00:05:58,760 --> 00:05:59,760
Speaker 1: by creating.

150
00:05:59,400 --> 00:06:02,760
Speaker 3: Exclusive Often that means they limit supply to amp up

151
00:06:02,839 --> 00:06:04,240
Speaker 3: that precious demand.

152
00:06:03,880 --> 00:06:06,560
Speaker 2: And that exclusivity is how they're able to charge exorbitant

153
00:06:06,560 --> 00:06:07,880
Speaker 2: prices for their products.

154
00:06:07,960 --> 00:06:10,480
Speaker 3: Looking at you omes with the Burken bags that started

155
00:06:10,520 --> 00:06:12,520
Speaker 3: a lazy ten thousand dollars.

156
00:06:12,200 --> 00:06:12,680
Speaker 1: But the man.

157
00:06:12,720 --> 00:06:15,119
Speaker 2: When a luxury brand isn't able to balance its supply

158
00:06:15,160 --> 00:06:18,039
Speaker 2: and demand, correctly, it can lose its air of exclusivity

159
00:06:18,120 --> 00:06:19,960
Speaker 2: and appeal with customers.

160
00:06:19,600 --> 00:06:21,480
Speaker 3: Which is what we saw happen with Capri and It's

161
00:06:21,480 --> 00:06:22,240
Speaker 3: Michael Core's brand.

162
00:06:22,279 --> 00:06:24,800
Speaker 2: Yeah, Michael Cars wanted to appeal to a broader demographic

163
00:06:24,839 --> 00:06:27,800
Speaker 2: and that meant it kind of became everywhere, so no

164
00:06:27,880 --> 00:06:28,960
Speaker 2: one wanted it anymore.

165
00:06:29,040 --> 00:06:30,040
Speaker 1: In fact, Michael calls.

166
00:06:30,080 --> 00:06:32,240
Speaker 3: So it's revenue dropped nearly ten percent for the twenty

167
00:06:32,279 --> 00:06:33,719
Speaker 3: twenty four financial year, and the.

168
00:06:33,839 --> 00:06:36,679
Speaker 2: Man most brands don't recover their image once their luxury

169
00:06:36,680 --> 00:06:38,960
Speaker 2: appeal is lost. Flux Sam, if you want a chance

170
00:06:39,000 --> 00:06:40,919
Speaker 2: to have one hundred and fifty dollars or one hundred

171
00:06:40,960 --> 00:06:43,800
Speaker 2: dollars or fifty dollars bunded in your raised investment account,

172
00:06:43,880 --> 00:06:44,200
Speaker 2: there is.

173
00:06:44,160 --> 00:06:45,320
Speaker 1: Only one place to do it.

174
00:06:45,320 --> 00:06:47,640
Speaker 2: It's in the Flux Academy this month, where we're breaking

175
00:06:47,680 --> 00:06:51,520
Speaker 2: down risk tolerances eachf share buying. Make sure to download

176
00:06:51,520 --> 00:06:53,480
Speaker 2: the Flux app and compete in the Academy this month.

177
00:06:53,480 --> 00:06:55,839
Speaker 1: Thanks for listening and we'll see you on Wednesday,