1 00:00:00,040 --> 00:00:02,880 Speaker 1: From Devon Funds Management, Greg Smith, Morning to you, Morning 2 00:00:02,880 --> 00:00:04,680 Speaker 1: to Mike. This spending is interesting, isn't. I go to 3 00:00:04,680 --> 00:00:08,280 Speaker 1: the American numbers, but this experiential thing seems to be real, 4 00:00:08,320 --> 00:00:10,120 Speaker 1: doesn't it. You know, people would rather spend their money 5 00:00:10,119 --> 00:00:12,560 Speaker 1: on experiences, and Nearbnb's part of that package. 6 00:00:12,600 --> 00:00:15,720 Speaker 2: I guess yeah, certainly hasn't it necessarily checking into them 7 00:00:15,760 --> 00:00:18,440 Speaker 2: on Friday, so shared up fourteen percent. That was their 8 00:00:18,440 --> 00:00:21,280 Speaker 2: best day ever, although I've ambien listed since twenty twenty. 9 00:00:21,280 --> 00:00:23,960 Speaker 2: So yeah, people after experiences. They saw our revenues up 10 00:00:24,239 --> 00:00:27,360 Speaker 2: twelve percent two point four eight billion for the quarter. 11 00:00:27,480 --> 00:00:30,880 Speaker 2: Four year revenues twelve billion dollars. That's a record. Next, 12 00:00:30,880 --> 00:00:32,600 Speaker 2: you also swung to a profit as well. It's almost 13 00:00:32,600 --> 00:00:35,240 Speaker 2: five hundred million there and they lost about three fifteen 14 00:00:35,240 --> 00:00:38,159 Speaker 2: million a year ago. Gross booking seventeen point six billion 15 00:00:38,640 --> 00:00:41,960 Speaker 2: and one hundred and eleven million nights and experiences have 16 00:00:42,000 --> 00:00:44,640 Speaker 2: booked on the platforms. That was up twelve percent, and 17 00:00:44,640 --> 00:00:46,880 Speaker 2: they've just been listening to users, Mike, so I made 18 00:00:46,960 --> 00:00:51,080 Speaker 2: over five hundred new features and upgrades, have done things 19 00:00:51,159 --> 00:00:55,959 Speaker 2: like verifying listings, hiring the top ten percent favorite geast experiences, 20 00:00:56,000 --> 00:00:58,840 Speaker 2: and then removed around about one hundred thousand low quality listings, 21 00:00:58,880 --> 00:01:01,440 Speaker 2: so they're certainly doing well. Are looking to investor further 22 00:01:01,520 --> 00:01:04,640 Speaker 2: two hundred and fifty million dollars in the business, and 23 00:01:04,680 --> 00:01:07,040 Speaker 2: they can certainly do that. Free cash flow last year 24 00:01:07,160 --> 00:01:10,320 Speaker 2: four point five billion dollars, so they want to be 25 00:01:10,319 --> 00:01:13,360 Speaker 2: the Amazon of vacation. So it looks like they're heading 26 00:01:13,360 --> 00:01:15,400 Speaker 2: on the right track. We're going to get revenue for 27 00:01:15,440 --> 00:01:19,120 Speaker 2: the current quarter of around at two point two five billion, 28 00:01:19,480 --> 00:01:21,319 Speaker 2: But hey, Mike, it's not all about the money. They're 29 00:01:21,319 --> 00:01:24,000 Speaker 2: also doing their bits socially, so obviously had those terrible 30 00:01:24,000 --> 00:01:28,919 Speaker 2: wide wildfires in LA. They're nonprofit arm housed almost twenty 31 00:01:29,000 --> 00:01:32,759 Speaker 2: thousand people, over two thousand pets, and receive twenty seven 32 00:01:32,760 --> 00:01:36,360 Speaker 2: million dollars in donations, including eighteen million dollars from its founders. 33 00:01:36,360 --> 00:01:38,800 Speaker 2: So ye're doing well and also doing good nice. I 34 00:01:38,880 --> 00:01:39,080 Speaker 2: like it. 35 00:01:39,200 --> 00:01:40,880 Speaker 1: And then you get to luxury or in this case, 36 00:01:40,959 --> 00:01:43,320 Speaker 1: ultra luxury. Ultra luxury seems to be working or is 37 00:01:43,360 --> 00:01:44,600 Speaker 1: it just Ames that's working. 38 00:01:45,640 --> 00:01:48,680 Speaker 2: Yes, it's the way to go, isn't it. The Cademy 39 00:01:48,720 --> 00:01:52,760 Speaker 2: reported it eighteen percent surge in fourth quarter sales, and 40 00:01:52,840 --> 00:01:55,800 Speaker 2: that was a head of expectations around about ten percent. 41 00:01:55,840 --> 00:01:58,880 Speaker 2: So there's are luctually goods making and make those birk 42 00:01:58,920 --> 00:02:00,800 Speaker 2: and bags they gave for twenty thousand US plus and 43 00:02:00,840 --> 00:02:02,520 Speaker 2: think you should get one for one hundred thousand if 44 00:02:02,560 --> 00:02:05,840 Speaker 2: you want one with crocodile skin. They might, but yeah, 45 00:02:05,840 --> 00:02:07,720 Speaker 2: wealthy consumers, they don't seem to be put off by 46 00:02:07,720 --> 00:02:11,000 Speaker 2: the price. Their sales of the fourth quarter three point 47 00:02:11,120 --> 00:02:15,160 Speaker 2: ninety six billion euros and we're doing particularly well America 48 00:02:15,200 --> 00:02:19,200 Speaker 2: and Japan both up twenty two percent. So that's pretty stabbing. 49 00:02:19,240 --> 00:02:21,480 Speaker 2: But yeah, guess the key point is that they actually 50 00:02:21,480 --> 00:02:23,639 Speaker 2: continued to outshine their rivals. You look at it Ova, mate, 51 00:02:23,639 --> 00:02:27,000 Speaker 2: they actually said sales growth is going backwards, luctually good 52 00:02:27,040 --> 00:02:30,080 Speaker 2: sales last year down two percent. So you're China being 53 00:02:30,120 --> 00:02:33,240 Speaker 2: sluggish and global inflation like, and I think part of it, 54 00:02:33,320 --> 00:02:36,720 Speaker 2: Mike is keeping their all through exclusivity, so they limit 55 00:02:36,760 --> 00:02:39,680 Speaker 2: their production each year to six to seven percent, and 56 00:02:39,720 --> 00:02:42,680 Speaker 2: they reckon things mon't change with tariffs. In fact, they 57 00:02:42,680 --> 00:02:44,640 Speaker 2: said they're going to probably put up prices and they 58 00:02:44,639 --> 00:02:46,840 Speaker 2: probably looks at these results they won't have any trouble there. 59 00:02:46,840 --> 00:02:49,400 Speaker 2: They're already looking to put up prices six to seven percent. 60 00:02:49,480 --> 00:02:51,560 Speaker 2: And yeah, regardless of what happens with Trump and the light, 61 00:02:51,600 --> 00:02:54,840 Speaker 2: then they're going to keep France chuning out leather, Switzerland 62 00:02:54,840 --> 00:02:58,560 Speaker 2: for watches, Italy for shoes, So yeah, she's edge tied. 63 00:02:58,560 --> 00:03:01,800 Speaker 2: They actually taking the mark kept over three hundred billion euros, 64 00:03:01,880 --> 00:03:06,080 Speaker 2: so they're actually closing on LVMH, which has two hundred 65 00:03:06,080 --> 00:03:09,240 Speaker 2: thousand people on its head counts. That's ten times more. 66 00:03:09,360 --> 00:03:11,880 Speaker 2: So they could soon have in the bag the title 67 00:03:11,919 --> 00:03:13,960 Speaker 2: of Europe's most valuable company. 68 00:03:14,000 --> 00:03:16,080 Speaker 1: Fantastic. And the reason we can't afford Burkns is of 69 00:03:16,080 --> 00:03:17,800 Speaker 1: course because the price of food's gone through the river. 70 00:03:17,880 --> 00:03:19,160 Speaker 1: What happened there, Oh. 71 00:03:19,000 --> 00:03:21,600 Speaker 2: My god, it's pretty incredible. So inflation generally going down, 72 00:03:21,600 --> 00:03:24,160 Speaker 2: but yeah, not so food so up one point nine 73 00:03:24,200 --> 00:03:27,400 Speaker 2: percent in January. That's the largest monthly ri since July 74 00:03:27,520 --> 00:03:29,480 Speaker 2: twenty twenty two. It's a bit across the board as well, 75 00:03:29,560 --> 00:03:31,960 Speaker 2: so sixty five percent of the items and a food 76 00:03:32,000 --> 00:03:35,680 Speaker 2: basket were more expensive, and in fact, twenty percent increased 77 00:03:35,680 --> 00:03:37,640 Speaker 2: in price by five percent of more. So I suppose 78 00:03:37,680 --> 00:03:40,480 Speaker 2: you could say the currency is probably playing a bit here, 79 00:03:40,520 --> 00:03:43,720 Speaker 2: but yeah, quite incredible. So grocery food three percent high, 80 00:03:43,800 --> 00:03:46,240 Speaker 2: so we're not imagining those sort of higher grocery bills 81 00:03:46,240 --> 00:03:49,080 Speaker 2: each week. Milk sixteen percent higher than a year ago 82 00:03:49,320 --> 00:03:52,360 Speaker 2: five undre grams a but that's fifty two percent high 83 00:03:52,520 --> 00:03:55,040 Speaker 2: six dollars seventy nine and you look not such a 84 00:03:55,040 --> 00:03:58,400 Speaker 2: heavy Valentine's Day for chocolate lover seving price of two 85 00:03:58,520 --> 00:04:03,160 Speaker 2: fifty grams five dollars seventy two can pet with four 86 00:04:03,200 --> 00:04:04,920 Speaker 2: bucks ninety a year ago. Of course, part of those 87 00:04:05,000 --> 00:04:07,400 Speaker 2: cocoa prices they'll been on a ten years, so growing 88 00:04:07,400 --> 00:04:09,280 Speaker 2: conditions have been adverst in West Africa in the light. 89 00:04:09,360 --> 00:04:10,960 Speaker 2: But yeah, other stuff is gaping as well. Food and 90 00:04:11,000 --> 00:04:14,400 Speaker 2: veggie is up two point eight percent, broccoli mic fifty 91 00:04:14,480 --> 00:04:18,120 Speaker 2: eight percent high ten bucks twenty five of kg alcohol, 92 00:04:18,200 --> 00:04:21,520 Speaker 2: alcohol and tobacco that's going up as normal. And outside 93 00:04:21,520 --> 00:04:23,320 Speaker 2: of food, other things a game as well. So at 94 00:04:23,320 --> 00:04:26,320 Speaker 2: the pump, petrol prices up four percent, diesel up almost 95 00:04:26,360 --> 00:04:29,280 Speaker 2: six percent. But almost the main bit of good news 96 00:04:29,320 --> 00:04:32,479 Speaker 2: was on IF so internationally they fail almost twelve percent, 97 00:04:32,560 --> 00:04:36,360 Speaker 2: Domestic down one point three but yeah it's under pressure, 98 00:04:36,360 --> 00:04:38,640 Speaker 2: but on terms of the food prices for sure, so yeah, 99 00:04:38,640 --> 00:04:41,560 Speaker 2: perhaps a week of dollar it's part of it. Fortunately 100 00:04:41,640 --> 00:04:44,480 Speaker 2: we have got the RBNZ this week and generally inflation, 101 00:04:44,520 --> 00:04:47,840 Speaker 2: I won't say that might but inflation is playing board act. You'll, 102 00:04:47,880 --> 00:04:49,760 Speaker 2: which also quickly had some good news on the economy 103 00:04:49,760 --> 00:04:52,560 Speaker 2: as well. Their manufacturing sector. Yes, spend it for the 104 00:04:52,560 --> 00:04:53,599 Speaker 2: first twenty three months. 105 00:04:53,680 --> 00:04:55,920 Speaker 1: Yeah, beat, it's like it's back. It was like we 106 00:04:55,920 --> 00:04:57,760 Speaker 1: were never in recession. Now, what are the numbers? 107 00:04:58,600 --> 00:05:00,680 Speaker 2: So the Dow was a slip sid on Friday down 108 00:05:00,680 --> 00:05:02,800 Speaker 2: point four percent, forty four five four success in P 109 00:05:02,839 --> 00:05:05,200 Speaker 2: five hundred that was flat, Nastick up point four percent, 110 00:05:05,440 --> 00:05:08,240 Speaker 2: forty one hundred down point four percent, Nike down point 111 00:05:08,240 --> 00:05:11,360 Speaker 2: eight percent, Hong Kong tech stocks on fire, Ali Barb 112 00:05:11,400 --> 00:05:14,320 Speaker 2: with their partnership with Apple hangs thing was up three 113 00:05:14,360 --> 00:05:17,240 Speaker 2: point seven percent. A six two hundred up point two percent, 114 00:05:17,760 --> 00:05:21,480 Speaker 2: eighty five five five that's a recorded index. Fifty vestas 115 00:05:21,480 --> 00:05:23,760 Speaker 2: filling the love on Friday at point sixty four percent 116 00:05:23,839 --> 00:05:26,920 Speaker 2: twelve nine eight nine. Commodity markets goal down forty five bucks, 117 00:05:27,000 --> 00:05:30,000 Speaker 2: twenty nine hundred ounce oil down fifty five per cents, 118 00:05:30,040 --> 00:05:32,920 Speaker 2: seventy spots, seventy four. Currency markets against the US with 119 00:05:33,040 --> 00:05:35,880 Speaker 2: fifty seven point three. We're up almost one percent a 120 00:05:36,000 --> 00:05:38,640 Speaker 2: dollar forty five point five high as well, ninety point 121 00:05:38,680 --> 00:05:41,240 Speaker 2: two against stealing it was up, and eighty seven point 122 00:05:41,400 --> 00:05:43,080 Speaker 2: three against the un that was up as well. So 123 00:05:43,279 --> 00:05:45,840 Speaker 2: this week Mike Lot's going on US retail sales. Got 124 00:05:45,839 --> 00:05:49,200 Speaker 2: the RBA rate decision. We've got the world's largest minor BHP. 125 00:05:49,320 --> 00:05:53,160 Speaker 2: We got the world's largest retailer, Walmart. They're reporting back home. 126 00:05:53,520 --> 00:05:55,680 Speaker 2: We've got lots of results. We've got seventeen in fact, 127 00:05:55,720 --> 00:05:59,800 Speaker 2: including a two contact fletchers. We've got services PMI, we've 128 00:05:59,800 --> 00:06:03,520 Speaker 2: got trade data. But yes, the big one, the O cry, 129 00:06:03,640 --> 00:06:06,000 Speaker 2: what are we going to get? Hopefully at least half percent? 130 00:06:06,040 --> 00:06:08,080 Speaker 1: But let's see good on your mite go well. Catch 131 00:06:08,120 --> 00:06:10,680 Speaker 1: up soon. Griggsmith, Devon Funds Management. 132 00:06:11,240 --> 00:06:14,120 Speaker 2: For more from the mic Asking Breakfast, listen live to 133 00:06:14,240 --> 00:06:17,320 Speaker 2: news talks. It'd be from six am weekdays, or follow 134 00:06:17,360 --> 00:06:18,920 Speaker 2: the podcast on iHeartRadio.