1 00:00:05,160 --> 00:00:06,520 Speaker 1: This is what the flux. 2 00:00:06,600 --> 00:00:10,000 Speaker 2: I'm Brett and I'm justin and at Wednesday, there first October. 3 00:00:09,600 --> 00:00:12,720 Speaker 3: Josey Boy, TikTok will soon have new overlords in the US. 4 00:00:12,760 --> 00:00:15,080 Speaker 1: Apparently earlier this week, Donald Trumps signed in. 5 00:00:15,120 --> 00:00:17,639 Speaker 3: Exec order that will allow TikTok to remain in the 6 00:00:17,680 --> 00:00:20,040 Speaker 3: US and sold to a group of US investors. There 7 00:00:20,079 --> 00:00:22,840 Speaker 3: have been some big names hinted at as investors with 8 00:00:23,160 --> 00:00:26,880 Speaker 3: Oracle Dell Fox Corps too, but China has not yet 9 00:00:27,080 --> 00:00:28,680 Speaker 3: confirmed that it's accepted the offer. 10 00:00:28,800 --> 00:00:31,040 Speaker 2: Big question of how they're going to transfer the algorithm 11 00:00:31,040 --> 00:00:33,120 Speaker 2: overbe Man, I know fox Man as which he got 12 00:00:33,200 --> 00:00:35,640 Speaker 2: the beginning of October. It is the perfect time to 13 00:00:35,640 --> 00:00:37,960 Speaker 2: be checking how your credit score changed in the month 14 00:00:37,960 --> 00:00:40,000 Speaker 2: of September. Did it go up, did it go down? 15 00:00:40,159 --> 00:00:42,360 Speaker 2: It's all covered in the Fox credit scord took. To 16 00:00:42,360 --> 00:00:44,239 Speaker 2: make sure to download the Flex app and check out 17 00:00:44,240 --> 00:00:45,479 Speaker 2: your credit score for October. 18 00:00:45,520 --> 00:00:48,320 Speaker 3: Three monstrous stories today, Juzzy boy, let's do it for 19 00:00:48,520 --> 00:00:52,040 Speaker 3: our first. The RBA has held the cash rate at 20 00:00:52,040 --> 00:00:56,520 Speaker 3: three point six percent after monthly inflation bounced back fast 21 00:00:56,520 --> 00:00:57,160 Speaker 3: and then expected. 22 00:00:57,280 --> 00:00:59,640 Speaker 2: We all saw it coming. The RBA slamming on the 23 00:00:59,640 --> 00:01:01,279 Speaker 2: brakes more time, so tell me more. 24 00:01:01,320 --> 00:01:04,240 Speaker 3: Well, juzzy boy, The Reserve Bank of Australia is a 25 00:01:04,280 --> 00:01:07,000 Speaker 3: bit like a DJ at Australia's Economic Party. 26 00:01:07,200 --> 00:01:09,560 Speaker 2: Eight times a year they check the vibes and adjust 27 00:01:09,640 --> 00:01:11,040 Speaker 2: the cash rate as needed. 28 00:01:10,800 --> 00:01:13,680 Speaker 1: To make sure inflation and unemployment rates stay in check. 29 00:01:14,000 --> 00:01:16,000 Speaker 2: And we've had three rate cuts this year so far, 30 00:01:16,160 --> 00:01:18,520 Speaker 2: and many of the major banks were expecting another one 31 00:01:18,680 --> 00:01:19,880 Speaker 2: before the end of the year. 32 00:01:20,000 --> 00:01:22,920 Speaker 3: But the Consumer Price Index or CPI, that rate jumped 33 00:01:22,920 --> 00:01:25,240 Speaker 3: from two point eight percent to three percent in August. 34 00:01:25,000 --> 00:01:27,640 Speaker 2: Which is the top end of the target inflation rate 35 00:01:27,640 --> 00:01:28,440 Speaker 2: for the RBA. 36 00:01:28,360 --> 00:01:31,679 Speaker 3: And when that news hit, financial markets turn their expectations 37 00:01:31,840 --> 00:01:32,479 Speaker 3: right back down. 38 00:01:32,560 --> 00:01:35,080 Speaker 2: In fact, the financial markets priced in an eight percent 39 00:01:35,160 --> 00:01:36,600 Speaker 2: chance of a rate cut, and. 40 00:01:36,480 --> 00:01:38,600 Speaker 3: The financial markets are right except for those eight percent 41 00:01:38,680 --> 00:01:39,240 Speaker 3: juzzy boy. 42 00:01:39,640 --> 00:01:42,080 Speaker 2: The RBA is taking a cautious approach this meeting and 43 00:01:42,160 --> 00:01:44,160 Speaker 2: pause the cash rate at three point six percent. 44 00:01:44,280 --> 00:01:46,720 Speaker 3: This will give the RBA more time to observe changes 45 00:01:46,760 --> 00:01:50,080 Speaker 3: in the broader economy and write out any short term volatility. 46 00:01:50,160 --> 00:01:51,600 Speaker 2: So what is the key learning here? 47 00:01:51,680 --> 00:01:54,440 Speaker 1: You don't need a mortgage to care about cash rate changes. 48 00:01:54,440 --> 00:01:56,080 Speaker 2: If you've got money in the bank account. The cash 49 00:01:56,200 --> 00:01:59,400 Speaker 2: rate probably impacts how much interest you're earning on your savings, but. 50 00:01:59,400 --> 00:02:01,200 Speaker 3: The cash right it could be affecting you in more 51 00:02:01,240 --> 00:02:03,720 Speaker 3: subtle ways as well. Jussy Boy. For example, when the 52 00:02:03,720 --> 00:02:06,000 Speaker 3: interest rate is lower, it becomes cheaper for businesses to 53 00:02:06,080 --> 00:02:06,760 Speaker 3: borrow money. 54 00:02:06,800 --> 00:02:09,200 Speaker 2: That means they could spend more on growth activities like 55 00:02:09,320 --> 00:02:11,800 Speaker 2: hiring new staff or investing in new opportunities. 56 00:02:11,960 --> 00:02:14,200 Speaker 3: And the cash rate can even have a domino effect 57 00:02:14,240 --> 00:02:15,760 Speaker 3: on your investment in super portfolio. 58 00:02:15,840 --> 00:02:18,560 Speaker 2: Yeah, there's a positive correlation between cash rate cuts and 59 00:02:18,680 --> 00:02:19,760 Speaker 2: share market jumps. 60 00:02:19,840 --> 00:02:22,440 Speaker 3: In fact, the median return for the ASX two hundred 61 00:02:22,480 --> 00:02:24,919 Speaker 3: is up between sixty seven percent in the year after 62 00:02:24,960 --> 00:02:25,720 Speaker 3: the first rate cut. 63 00:02:25,760 --> 00:02:28,480 Speaker 2: Interesting. So you see, b man, it's not just about mortgages. 64 00:02:28,560 --> 00:02:30,600 Speaker 2: The cash rate affects the economy as a. 65 00:02:30,520 --> 00:02:32,720 Speaker 1: Whole, and that is why it's worth paying attention to. 66 00:02:33,440 --> 00:02:36,799 Speaker 2: For our second story, video game, Giant Electronic Arts has 67 00:02:36,840 --> 00:02:39,880 Speaker 2: agreed to sell out to Saudi Arabia's sovereign Wealth Fund 68 00:02:40,000 --> 00:02:42,760 Speaker 2: and two private equity firms for a whoppen fifty five 69 00:02:42,919 --> 00:02:44,080 Speaker 2: billion US dollars. 70 00:02:44,160 --> 00:02:47,080 Speaker 3: Got on a minute, Juzzy Boy game changing numbers for EA. 71 00:02:47,320 --> 00:02:50,040 Speaker 2: What is the story Electronic Arts was found in nineteen 72 00:02:50,080 --> 00:02:52,800 Speaker 2: eighty two and today is one of the largest independent 73 00:02:52,919 --> 00:02:54,800 Speaker 2: video game publishers in the whole wide world. 74 00:02:54,880 --> 00:02:55,079 Speaker 1: Yep. 75 00:02:55,120 --> 00:02:57,680 Speaker 3: It's best known as the maker of EA Sports FC 76 00:02:57,960 --> 00:03:00,680 Speaker 3: formerly known as Fifas, and it's all also the maker 77 00:03:00,760 --> 00:03:01,960 Speaker 3: of the SIMS. 78 00:03:01,639 --> 00:03:04,440 Speaker 2: And the maker of the SIMS language Wish. 79 00:03:04,840 --> 00:03:06,720 Speaker 3: And it's a bit of a standout in the gaming 80 00:03:06,720 --> 00:03:09,480 Speaker 3: world these days thanks to a wave of industry consolidation 81 00:03:09,639 --> 00:03:12,240 Speaker 3: over the last few years. But now Jussy Boy Saudi 82 00:03:12,280 --> 00:03:15,560 Speaker 3: Arabia's public investment fund, along with silver Lake Management and 83 00:03:15,680 --> 00:03:18,799 Speaker 3: Affinity Partners. They've all agreed to pay fifty five billion 84 00:03:18,880 --> 00:03:20,959 Speaker 3: US dollars for Electronic Arts. 85 00:03:20,760 --> 00:03:22,760 Speaker 2: Which is a twenty five per cent premium to where 86 00:03:22,760 --> 00:03:25,200 Speaker 2: EA traded before the talks were leased last week. 87 00:03:25,240 --> 00:03:27,520 Speaker 3: And the deal will be funded with cash of about 88 00:03:27,520 --> 00:03:29,480 Speaker 3: thirty six billion US dollars. 89 00:03:29,200 --> 00:03:33,119 Speaker 2: While twenty billion US dollars will be debt from GP Morgan, Chase. 90 00:03:32,880 --> 00:03:35,680 Speaker 3: And Cole the largest debt commitment for a buyout of 91 00:03:35,720 --> 00:03:36,600 Speaker 3: all time. 92 00:03:36,480 --> 00:03:39,320 Speaker 2: And be man this deal will enable Saudi Sovereign Wealth 93 00:03:39,320 --> 00:03:42,680 Speaker 2: Fund to go deeper into its new favorate asset class. 94 00:03:42,760 --> 00:03:44,160 Speaker 1: Yeah, so what is the key learning here? 95 00:03:44,200 --> 00:03:46,960 Speaker 2: As Saudi Arabia's sovereign wealth fund continues to go further 96 00:03:47,000 --> 00:03:50,480 Speaker 2: into private equity. It continues to go further into gaming investments. 97 00:03:50,560 --> 00:03:50,760 Speaker 1: Yeah. 98 00:03:50,800 --> 00:03:53,320 Speaker 3: Private equity investors have a special place in their heart 99 00:03:53,360 --> 00:03:57,279 Speaker 3: for gaming companies, particularly those with steady and reliable franchises 100 00:03:57,320 --> 00:03:59,920 Speaker 3: and b man EA's strength in its sports gives it 101 00:04:00,040 --> 00:04:03,480 Speaker 3: a very predictable revenue the private equity firms really like. 102 00:04:03,600 --> 00:04:03,760 Speaker 1: Yeah. 103 00:04:03,840 --> 00:04:07,920 Speaker 3: For example, EA's sport titles include EA Sports FC. As 104 00:04:08,000 --> 00:04:11,560 Speaker 3: mentioned that was FIFA and also Madden NFL and plenty others, and. 105 00:04:11,560 --> 00:04:14,480 Speaker 2: Last year EA's top games accounted to four of the 106 00:04:14,480 --> 00:04:16,440 Speaker 2: industry's top ten best sellers. 107 00:04:16,279 --> 00:04:16,880 Speaker 1: But Dozivoid. 108 00:04:16,960 --> 00:04:19,440 Speaker 3: It also shows how sovereign wealth from the Middle East 109 00:04:19,480 --> 00:04:22,719 Speaker 3: is increasingly playing in the biggest private equity deals globally. 110 00:04:22,800 --> 00:04:25,400 Speaker 2: In fact, this Saudi fund has already had a significant 111 00:04:25,400 --> 00:04:28,080 Speaker 2: investment in video games, including the ownership of the maker 112 00:04:28,120 --> 00:04:30,760 Speaker 2: of Pokemon Girl, so it will be very interesting to 113 00:04:30,800 --> 00:04:33,479 Speaker 2: see if the world's largest leverage buyout can make it 114 00:04:33,560 --> 00:04:36,080 Speaker 2: rain for EA and its new big Dame owners. 115 00:04:36,120 --> 00:04:40,000 Speaker 3: For our third and final story, Accentia has slashed eleven 116 00:04:40,200 --> 00:04:43,720 Speaker 3: thousand jobs globally over the last three months and has 117 00:04:43,760 --> 00:04:46,320 Speaker 3: put a warning on all staff retrained in AI or 118 00:04:46,440 --> 00:04:48,080 Speaker 3: risk being left behind. 119 00:04:47,839 --> 00:04:50,240 Speaker 2: Shape up or ship out at Accentua, b Man, So 120 00:04:50,440 --> 00:04:51,000 Speaker 2: tell me more. 121 00:04:51,120 --> 00:04:54,560 Speaker 3: Accentia is a global IT consulting giant founded in nineteen 122 00:04:54,640 --> 00:04:57,680 Speaker 3: eighty nine, with nearly eight hundred thousand employees worldwide. 123 00:04:57,680 --> 00:05:01,359 Speaker 2: Accentua literally has more staff than the whole population of Tasmania. 124 00:05:01,440 --> 00:05:03,560 Speaker 3: But Jase Boyd, the US government has clamped down on 125 00:05:03,600 --> 00:05:08,239 Speaker 3: its consulting spend under the Department of Government Efficiency aka DOGE. 126 00:05:08,480 --> 00:05:10,760 Speaker 1: Yep, they've canceled many IT contracts. 127 00:05:10,760 --> 00:05:13,280 Speaker 2: So now Excentsuons announced an eight hundred and sixty five 128 00:05:13,320 --> 00:05:16,760 Speaker 2: million US dollar restructuring program to deal with this weaker 129 00:05:16,800 --> 00:05:17,679 Speaker 2: consulting demand. 130 00:05:17,800 --> 00:05:19,640 Speaker 3: In fact, in the last three months it's cut more 131 00:05:19,640 --> 00:05:20,719 Speaker 3: than eleven thousand jobs. 132 00:05:20,800 --> 00:05:22,760 Speaker 2: Now, the good news for Accentua is it locked in 133 00:05:22,880 --> 00:05:26,240 Speaker 2: more than five billion US dollars in new AI project bookings. 134 00:05:25,880 --> 00:05:27,880 Speaker 1: This year, which is almost double the year before. 135 00:05:27,920 --> 00:05:30,719 Speaker 2: So be man. Given the growth in AI projects, Accentsions 136 00:05:30,760 --> 00:05:33,520 Speaker 2: warn staff that if they can't reskill for the AI era, 137 00:05:33,800 --> 00:05:35,880 Speaker 2: they may as well walk out the front door. 138 00:05:36,000 --> 00:05:37,200 Speaker 1: So what is the key learning here? 139 00:05:37,240 --> 00:05:40,200 Speaker 2: In professional services firms, the main asset is in software 140 00:05:40,279 --> 00:05:42,400 Speaker 2: or factories or machines. It's people. 141 00:05:42,520 --> 00:05:45,680 Speaker 3: Yeah, it's the skills and expertise of staff that are 142 00:05:45,680 --> 00:05:47,279 Speaker 3: the firm's most important asset. 143 00:05:47,040 --> 00:05:49,000 Speaker 2: And be man. This is the same for consulting firms 144 00:05:49,000 --> 00:05:50,920 Speaker 2: and accounting firms, law firms as well. 145 00:05:51,040 --> 00:05:53,880 Speaker 3: Yep, and that's why Accentu's warning is so blunt. Retraining 146 00:05:53,960 --> 00:05:55,479 Speaker 3: AI or risk being left behind. 147 00:05:55,560 --> 00:05:58,480 Speaker 2: In fact, according to an IBM survey, about forty percent 148 00:05:58,520 --> 00:06:00,760 Speaker 2: of the workforce will need a rescre over the next 149 00:06:00,760 --> 00:06:02,839 Speaker 2: three years because of AI and automation. 150 00:06:03,000 --> 00:06:05,680 Speaker 3: So if accentia stuff can't adapt to the next wave 151 00:06:05,720 --> 00:06:08,479 Speaker 3: of tech, their skills quickly become obsolete. 152 00:06:08,040 --> 00:06:10,080 Speaker 2: And the firm's assets lose value. 153 00:06:10,279 --> 00:06:13,120 Speaker 3: Sounds a bit grim to describe humans as another form 154 00:06:13,160 --> 00:06:15,240 Speaker 3: of capital, but in this industry, basically a. 155 00:06:15,240 --> 00:06:17,840 Speaker 2: Reality is fux Sam has your credits going gone up 156 00:06:17,920 --> 00:06:19,440 Speaker 2: or gone down? If you want to know what the 157 00:06:19,480 --> 00:06:21,680 Speaker 2: banks can see about you, there is one place to 158 00:06:21,720 --> 00:06:24,000 Speaker 2: do it. It is smack bang in the Flux app. 159 00:06:24,000 --> 00:06:25,600 Speaker 2: We break it down. To make sure to download the 160 00:06:25,640 --> 00:06:26,719 Speaker 2: Flux app to check it out. 161 00:06:26,720 --> 00:06:29,080 Speaker 1: Thanks for listening and we'll see you on Friday.