Latest / The Curve / The richer you are… the more you love AI?

Transcript

The richer you are… the more you love AI? · The Curve

0:00
Welcome to the Care of Weekly, where we read the finance news so you don't have to.
0:04
I'm Vick Harris, a finance professional who has had a career out of making money for
0:08
other people.
0:09
And I'm Sophie Hallwright.
0:10
I'm an executive producer of Television Radio and I was just really sick of not understanding
0:14
the economy so we started this podcast.
0:16
In today's episode, there are some countries that have just over four weeks left of oil
0:21
reserves.
0:22
So what happens after that?
0:23
A business that is a quarter of the size of eBay has just made a bid to buy it.
0:28
This is the offer known for coming, including eBay.
0:30
We have a new take on AI.
0:32
Could it actually be creating more jobs?
0:34
And finally, Uber started as the apt-gear for May to be, but it's slowly turning into
0:39
the app for everything.
0:40
But before we jump in, we just want to do a bit of a thank you to our incredible team,
0:45
Lucy Monroe, our social media manager and Emily Rigby, our incredible podcast producer.
0:49
But first, a word from today's sponsor.
0:54
This episode of The Care of Weekly is made possible by Pathfinder QS Ever Plan, helping
0:58
you invest alongside your values.
0:59
Pathfinder's one mindful money, best ethical investing provider for five years running.
1:04
So we've teamed up with them to bring you the ethical hotline.
1:06
Got questions about the ethics of an investment?
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Or unsure where you draw the line?
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Submit your questions via the link in the podcast, show notes, and thank you so much to Pathfinder
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for making this episode of The Care of Weekly possible.
1:16
Pathfinder asset management limited is the issuer of the Pathfinder QS Ever Plan.
1:20
A product disclosure statement is available at Pathfinder.keywee.
1:24
So oil, for anyone that's sick of this conversation firstly,
1:27
sorry, but this is an important combo that needs to be had.
1:31
We're not going to spend ages on it right now, but there is some updates that are
1:35
definitely worth talking about.
1:37
It's scary.
1:37
The amount of reserves that are left and what actually we're going to do.
1:41
So New Zealand and Australia have about 38 days left of petrol.
1:45
And what would happen if we run out?
1:47
So we actually have 90, but it's not on short, it's not like in the country.
1:52
Legally, you have to have 90 days of reserves.
1:55
And it's kind of like an emergency fund before we go.
1:58
Yeah, yeah, yeah.
1:59
And it's because like so much of the country relies on it.
2:01
But out of the 36 countries in the international energy association,
2:09
sorry, just, it's like IAE, and I just had to remember what it was for.
2:12
IAE?
2:13
IEA.
2:14
What did I say?
2:15
I don't know.
2:16
I think I'm a bit dyslexic sometimes.
2:17
Oh, yeah, same.
2:18
With numbers, shit.
2:20
I think my metaphors, you know, that makes me, that's what makes me think I'm a bit.
2:24
Side note, can I quickly tell you, I, so I think I've shared this before on the podcast.
2:28
I am horrendous at maths, like maths is something I just really struggle with.
2:33
And I always kind of joked because when I was at school, I was in the alternative maths
2:37
class, which there was three people in the whole year.
2:39
So keep in mind, there's about 160 people at my school.
2:42
There was three of us, anyway, me and one of my best friends.
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I love probably called alternative maths, like, kind of makes you sound smart,
2:48
but kind of not like, like alternative, like your soul, not great.
2:52
Anyway, what was the point to my story?
2:54
Oh, I was playing a game the other day.
2:56
It had dice and a cup.
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Every time it came to my turn, it became incredibly apparent howl.
3:02
You couldn't add two dice to that.
3:03
I was just number dyslexic.
3:04
Two dice.
3:05
It was so embarrassing.
3:07
I, I, every, and I could tell everyone, you're like, um,
3:10
everyone was trying to be like, so you could do this or you could do this.
3:13
And it was like, they were speaking French to me and I could not compute what was happening.
3:18
And I thought, and I looked it up, this act, you can actually be number dyslexic.
3:22
But one of those I think I actually have a diagnosable.
3:26
Well, I'm glad we have a financial education forecast.
3:29
But Tim, that is the thing though.
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Like, that's why I'm here, babe.
3:32
But I was about to find out that this is also isn't maths.
3:35
Like, I think it's important to remember that and that is where a lot of beginners,
3:39
sometimes when we're like doing it, the representation of it and you're like,
3:42
you're like, 20,000 people, I'm like, it was 20.
3:45
Yeah, yeah, yeah, yeah.
3:46
My number's up for Rise Off.
3:48
Thank God for spreadsheets that automate number.
3:50
Oh, gosh, yes.
3:51
Anyway, it is a ginormous here.
3:54
We lasted about 30 seconds talking about finance.
3:56
Yeah, yeah, headlines.
3:57
Anyway, yes, New Zealand is, New Zealand and Australia are one of the worst countries
4:02
in terms of their low suppliers of petrol.
4:05
And the UK's got about 60 to 90 days.
4:09
But essentially, we are at the crunch point now.
4:12
Everyone's like, if this goes into June, which is kind of in 30 days time,
4:17
this is, this is dire news.
4:19
But an interesting thing is kind of happening.
4:21
And because the Middle East is effectively closed off, 20% of the world's oil,
4:27
people are now getting their oil from other places, like particularly the US
4:31
because they're the next biggest oil exporter.
4:34
However, we are now seeing with Everund supplies dwindling, the US is itself.
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It's like, do we stop supporting the rest of the world and exporting our oil
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and protect ourselves?
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As in, they don't even export.
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No, it's like, so they're exporting so much right now to compensate for the Middle East.
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It's now getting to a point where they kind of have to decide,
4:56
oh my god, it's Hunger Games.
4:57
Do we ban exports and protect our home country?
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Or do we do what's good for the world and keep helping support all the rest of the country?
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And also, amazing to think that the person in charge of that decision
5:09
cares so much about the rest of the world.
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And I'm sitting here, I'm like, maybe this was all his plan.
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I know, wild.
5:17
It is Hunger Games-y.
5:18
Oh my god, maybe it was his plan the whole time.
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And he's like, I'm trying to sort out, I'm trying to stop the war,
5:25
I'm trying to negotiate with Iran.
5:26
Maybe he just wants Everund to be at the big and cool of the U.S.
5:30
I mean, look, now I'm just getting, I'm getting here.
5:32
A little conspiracy theory that, who knows, I feel like this is not far off
5:35
what it could be happening.
5:37
Yeah.
5:37
So like, US oil exporters are having the best time either.
5:42
They're expected to earn an extra 60 billion this year,
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versus last year, from this, because they're still exporting.
5:49
The price is just effectively nearly tripled.
5:51
This is the best example of supply and demand.
5:54
Yeah.
5:54
And when it comes to anything, whether it's buying property,
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whether it's buying clothing, whether it's like literally anything,
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if there's a scarcity or not enough for the amount of people that want to buy,
6:05
that is why prices go up.
6:06
Exactly, if you were selling a house in all of a sudden,
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20% of all the houses available in your area couldn't be sold,
6:12
but the demand's still there.
6:14
You're selling, they're going, yes, amazing.
6:16
I mean, it's more a higher price for my house.
6:18
It's exactly the same with these oil exporters.
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It's like, they're selling, they're going, cool.
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They have most valuable commodity that people want to buy.
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And so they can actually charge whatever they want.
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It's like the supply has been reduced,
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but the demand has stayed the same.
6:31
Yes.
6:32
So it's like, if you cut away, let's say half of the supply of anything,
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of blueberries, you know,
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but there's still the same amount of people that want the blueberries.
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It's kind of like a free-for-all in terms of like,
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well, you might be like, well, I'll pay $10.
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I'm like, no, no, well, pay lemon.
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I'll pay $12, I'll pay $13, you know what I should say.
6:49
It's probably quite a good time to just talk about
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not only oil and petrol and the prices of everything going up
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as a result of this,
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but could we maybe just spend a couple of minutes explaining
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what is likely to happen if we get to the end of these reserves?
7:05
What actually is worst-case scenario?
7:07
If we get closer to those final days or like even weeks,
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they'll have to be severe measures like a traffic light theory,
7:14
you know, like COVID again.
7:15
It's like, okay, cool.
7:17
You can only use your car one day a week.
7:19
You can only, like, we will have to get to that point
7:22
and there'll just be so much revolt.
7:24
There'll be businesses that have to shut down.
7:25
There'll be like, spending money,
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it oils and everything.
7:29
Condoms, for example, have skyrocketed
7:31
because they made of oil.
7:32
What am I going to do?
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You're going to have to have some unretected steaks.
7:37
You'll be babies.
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But I do.
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Don't be a ton of babies.
7:40
It's all the fertility issue.
7:42
Don't you think that the oil crisis is all the fertility issue?
7:45
Can we just tell about the fact that it is impossible
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to get through a pack of condoms?
7:50
Like, sorry.
7:51
I feel like it's one of those things
7:53
that there was always a problem.
7:54
Don't you think?
7:56
No, I'm being serious.
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It's not a, I'm having, like, no sex issue.
8:00
It's the idea that there's so many condoms in a packer.
8:03
Yeah, yeah.
8:04
I mean, I just hate using them anyways.
8:06
That's the sex disruptor.
8:07
God, it's such a mode, Kelly.
8:09
So hang on a second.
8:11
I call it happy.
8:11
Yeah, it's so bad.
8:13
Every time I try, it's kind of like an elevated moment
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where you try really hard to be like,
8:17
time be awkward, time be awkward, time be awkward.
8:18
Yeah, yeah, yeah.
8:19
Oh, my God, I want to call into that.
8:20
Oh, my God.
8:21
Yeah, yeah, yeah.
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I know.
8:23
OK, so I mean, inflation, we're already
8:25
seeing inflation come through.
8:27
We are seeing kind of central banks not increase.
8:31
You know, kind of everyone's a bit on pause
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to kind of see what's going to happen.
8:34
You know, we were in this kind of interest rate cutting
8:37
cycle, which was really good, because it was
8:38
feeling the economy great.
8:40
You know, Australia and New Zealand,
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UK, everyone's kind of pausing, waiting, what's happening,
8:46
when they start increasing those.
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Like, I just got sent through my new fixed rates
8:50
for my mortgage from June, kind of some of them
8:53
are up back to 6 p.m., which is so annoying.
8:55
Oh, my God.
8:56
I just thought we were on this way down.
8:58
And now, you know, like there, they're obviously pricing in.
9:00
If you lock it in, if you lock in your fixed mortgage rate
9:03
for two, three years, you're going to pay a higher rate,
9:06
because that obviously...
9:07
Can you swap to floating?
9:08
Yeah, but then I could go up.
9:10
Yeah.
9:11
So you're trying to be like, OK, well, is this all
9:13
going to be over next week?
9:15
Then interest rates will, you know,
9:16
and you've locked in three years.
9:17
Do you know what we should actually talk about this
9:18
in the property podcast?
9:19
I feel like it's a really good topic, because there's...
9:21
Because that idea of what is...
9:23
How do you even figure out what your...
9:26
Given what's happening in the world right now,
9:27
should you be floating?
9:28
Should you be fixed?
9:29
Yeah.
9:29
Can talk about that separately.
9:30
But even though oil prices are going to flow through to companies,
9:32
companies, profits, the stock market,
9:34
it could get worse before it gets better.
9:36
I think in the early, in the early few weeks,
9:38
you know, there was a bit of volatility in the stock market
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and they were like, oh, well, this won't this.
9:42
And now it feels very...
9:45
Les Blasey, we had a really good reporting season
9:48
wearing it right now.
9:49
But that's the previous results.
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And all...
9:53
There's a lot of companies that have to give their results.
9:54
Yeah, sorry.
9:55
Yeah, so looking forward, it's like...
9:58
That's to kind of the end of March, most of those.
10:02
So the oil crisis started in April, you know?
10:06
So I think...
10:07
Sorry, I'm a bit confused.
10:08
What's the correlation?
10:09
Well, sorry.
10:09
We're starting to see it come through in companies
10:11
and then in profits,
10:12
and then they don't want the stock market.
10:13
Oh, so as everyone's doing really well right now,
10:16
but the future or like forward-looking
10:18
in terms of what people are expecting,
10:21
what's going to happen to companies
10:22
and them out of profit they're making
10:24
is something that we may see in the net report.
10:26
Yes, yeah.
10:28
And I mean, people are starting to predict it.
10:30
Now, that's why the stock market moves around
10:32
so much when there's this kind of news, you know,
10:35
that it's open, that it's closed, that it's open.
10:37
Did you see that meme that I sent to the curve?
10:40
There was a guy standing outside his cafe,
10:42
and he opened the open-close sign, he flicks it to open,
10:44
and the sky walks out.
10:45
He's like, hey mate, and then he's like,
10:47
close, sorry, we're close now.
10:49
And then he's like, oh, but I thought you said you're open,
10:50
and he's like, oh, no, no, no, no.
10:51
Oh, you were open now, oh, no, no, we're close.
10:53
Oh, we're open.
10:54
But what's he laughing at?
10:55
That's the straight-up of him, who's...
10:56
Oh, yeah.
10:57
God, that took me way along with it.
10:59
I feel conflicted about the...
11:04
What? Sorry, no.
11:05
It was just, we spoke in an event this week,
11:08
and one girl asked, you know,
11:10
with everything going on in the world right now,
11:12
is now a good time to invest.
11:14
And I think it was a really good question,
11:15
because we jump on here, and we talk about everything
11:17
that's going on in the world, you know, like,
11:18
and even just the last five minutes of, you know,
11:21
it could get a lot worse, inflation, interest rates.
11:24
Yeah, there is always going to be stuff like this,
11:27
and yes, you can be informed.
11:29
Yes, the stock market might jump around a bit.
11:31
It might fall, it might rise.
11:34
I just need to keep investing.
11:35
I think...
11:36
No, no, no, it's true.
11:37
And when she asked that question, I thought,
11:39
ding, ding, ding, we should do a deep dive
11:41
on all of the big things that have happened
11:43
in the last 10, 15 years.
11:45
In terms of massive scary things at the time,
11:48
we were all thinking, God, it can't get much worse.
11:51
The world's in a shit state, blah, blah, blah.
11:53
Totally.
11:53
And then actually look at if you'd invested at that time,
11:55
how much you would have gone up by now,
11:56
because I think the psychology of when you're in it
11:58
and the media and all of the headlines are really overwhelming.
12:01
But if you look back at history,
12:03
I think it gives you the sense of relief of where we're heading.
12:06
And also what...
12:08
It's just the reality of living in a world that's very complex.
12:11
There's always going to be things going on.
12:13
And it does feel like there's a lot more going on recently,
12:16
but I think that's because we've got an information overload.
12:19
You know, we can very quickly access news on social media
12:22
and all of that.
12:23
Yes, it might feel like there is a lot more.
12:26
We've also got someone in power who is probably
12:28
creating a bit more than normal news.
12:31
He just loves being in the news as well.
12:33
Like every article, every video, he's like,
12:35
it's me again.
12:36
I'm like, you're so annoying.
12:38
OK, let's move on to eBay, eBay.
12:41
Our second news item, this I find very interesting.
12:45
Now, before we get into this,
12:49
I...
12:50
There's wine back the clock.
12:51
Yes, I was about to say the exact same thing.
12:53
Wine back the clock, but see what the saying tells us what's going on.
12:56
Do we have a clip from that?
12:57
Yes, we do.
12:58
This is a little snippet of what happened.
13:02
How many years ago was this?
13:03
2021.
13:04
Cast your mind back to what was going on.
13:06
Now, for most of us listening to this podcast,
13:08
we're probably very uninteresting the stock market
13:10
at this point in time.
13:12
The curve weekly did not exist.
13:13
However, if it did, this would have been something we massively
13:17
talked about.
13:17
It was essentially a meme stock that went up and up and up.
13:20
It's like the OG meme stock.
13:21
Yeah.
13:22
So people banded together to send the stock through the roof.
13:24
We're just going to play a little clip.
13:27
Game stop.
13:27
Game stop.
13:28
Game stop.
13:29
One of the most volatile weeks on Wall Street.
13:32
Social media average Joe's versus big money players.
13:35
Yeah, David and Goliath's struggles.
13:37
There was a lot of swings in terms of being happy,
13:40
and then a lot of very depressing moments.
13:43
I saw the numbers go out by the numbers
13:45
and I never seen them before in my bank account
13:47
and go down within five minutes.
13:50
It was a roller coaster of the emotion.
13:52
But this kind of came out of nowhere, right?
13:53
It was the first time it had happened.
13:55
Yes.
13:55
It was like a real down in the dumps video game shop.
13:58
And it was like on its last legs,
14:00
its share price was really in the dumps.
14:02
And everyone on Reddit jumped on this bad wagon
14:06
to buy it and boost its share price.
14:09
And it was wild.
14:11
It went from $20 to over $500 in a matter of days.
14:15
Like, people made bank on that share price.
14:18
I have listened to a little story on this.
14:21
So I think the thing I didn't understand for a while
14:25
was how do these activist investors
14:28
that boost up meme stocks choose who they're going to do that
14:32
to or what company it is?
14:33
And I was listening to something this morning
14:36
actually that was speaking about, apparently,
14:37
the CEO, who are going to speak about in a second,
14:40
is quite a, like, wheelie dealer.
14:44
Yeah, but also he's almost a bit stick it to the man's
14:48
stick it to the companies.
14:49
Like, he's, he basically, if you imagine the people
14:52
that are jumping on board meme stocks
14:54
and choosing a company, and they're doing it
14:56
to kind of f over all these hedge funds,
14:58
he's almost the interfaces of that.
14:59
So of course they saw him as a CEO
15:01
and thought, let's support him and then chose this company.
15:05
Yeah, and that was the reason, right?
15:06
Was that all these hedge funds were short?
15:08
So they'd benefit when the share price goes down.
15:11
But they were doing so badly.
15:14
Yeah, the share price is doing so badly
15:15
that people were betting against it doing even worse.
15:18
Yeah.
15:19
And so people base, it's like people making money
15:21
off something doing shit.
15:23
Like it's without going into hedge funds.
15:25
Yeah, the hedge funds are betting on it doing worse.
15:27
And then that's why the reddit,
15:29
the reddit people jumped on the bad wig
15:30
and they were like, if the institution,
15:32
we're going to f over these hedge funds
15:35
by increasing the share price.
15:36
And then that just means that the hedge funds
15:39
are like making losses and huge losses
15:41
because they are betting it goes down.
15:42
Yeah.
15:44
You're like, you're screwed.
15:45
Yeah.
15:46
But the reason we're talking about this
15:48
is that Game Stock, which was literally in the toilet
15:54
a few years ago, has just made a takeover offer for eBay.
16:00
Does anyone use eBay anymore?
16:02
Okay.
16:03
Emily just put her hand up saying she loves eBay.
16:05
I actually bought something on there like last year
16:07
and I was kind of like, will it arrive?
16:09
Is it a scam?
16:10
Is it so, like OG and scammy now?
16:13
Look at their website and they just feel, yeah,
16:16
it feels scammy.
16:17
Yeah.
16:17
Well, you've got Amazon now to get absolutely anything.
16:20
Like they really were the poster child
16:22
of like a marketplace to buy, you know, anything.
16:25
And now Amazon's kind of taken over that.
16:27
You've got Facebook marketing.
16:29
You're so many other competitors.
16:30
Yeah.
16:31
I mean, about it was, it was the 90s, the cool,
16:34
it was so cool to buy an eBay.
16:36
Yeah.
16:37
People were like, where'd you get it from?
16:38
They got it from eBay.
16:39
Yeah.
16:40
Well, now it's international, you know,
16:42
you could buy things from overseas and you were like,
16:44
whoa, I got this from the U.S.
16:45
Yeah.
16:46
Oh my gosh.
16:47
Little of New Zealand.
16:48
You had to do his PayPal to check out, but it was fine.
16:50
Yeah, no, it was so true.
16:51
So anyway, GameStop has made a nearly $60 billion offer
16:56
to buy eBay.
16:57
Now, this has come out of absolutely nowhere.
17:02
Imagine being the executive of the eBay
17:03
and you're just like, dude, dude, do you want to uncover it?
17:05
Oh, oh, oh, okay.
17:07
We, we, we, we, we take over and see the one coming.
17:10
I do.
17:11
What is this company?
17:12
Have you ever even heard of it?
17:13
Okay, let's also just acknowledge that.
17:16
What you've said is such a good point.
17:18
This is not a, hi, I'm going to contact the CEO
17:21
and tell them that I want to, you know, take over their business.
17:24
It's like a public hostile, you hear it in the news.
17:27
Yeah.
17:28
It would be like us waking up one morning
17:30
and some random person having spoken to all our investors
17:34
saying that they want to take the business over
17:36
and turn it into a bathroom making business.
17:38
Yeah.
17:39
Like, okay, that's a bit random.
17:41
Like it's not something that happens to high-cost doors.
17:43
You have to almost defend your business to your shareholders, you know.
17:46
But if we had been, I don't know, on holiday every week
17:49
and like, you know, growth was really sluggish
17:52
and the content was shut, then you do piss off
17:55
of your shareholders and then they're, you know,
17:58
they're like, you know, what?
17:58
Actually screw you guys.
18:00
You haven't been delivering what you said you're going to do.
18:02
We want to do this take, we want to accept this take over offer.
18:06
And so that's why like there's hostile
18:08
and then there's like friendly.
18:10
And friendly is when you approach the executives
18:12
and you're like, hey, we want to do this.
18:14
And they're like, you know what?
18:16
That's actually a really good deal.
18:17
I think these businesses combined will be great together
18:19
and they kind of give their blessing to shareholders
18:21
to accept it, whereas this is very hostile.
18:24
This is like, what the fuck?
18:26
GameStop is a $12 billion company
18:29
and eBay is a $45 billion company.
18:31
It's actually four times the size.
18:34
Honestly, they'd be like, who are you?
18:35
Yeah.
18:36
Sorry.
18:37
Who is this tiny little thing that's trying to tap me on the shoulder?
18:41
It's so bold.
18:42
Yeah, it's like, it's like the corner deri trying to buy the supermarket.
18:45
They'd be like, um, or maybe yeah, yeah, it's like someone
18:49
that's just started, they've thought,
18:50
I'm going to start an investing podcast
18:52
and they have two followers and then they've gone out to our shareholders
18:55
and are like, we're going to take over the curve.
18:57
It's really like quite bold, but it can happen, right?
19:00
So like they are offering to pay eBay shareholders nearly 50%
19:06
higher than what the shoe price is right now.
19:09
So if you were sitting there as an eBay shareholder,
19:11
you're probably like, you know what?
19:12
Shit, yeah.
19:13
And half of that, so that's $125 a share, half of that,
19:18
they're like, here's so if you can take half of that and cash,
19:21
and half of it will become GameStop.
19:23
GameStop's shock.
19:24
Well, that's a GameStop stock.
19:27
And then you can decide whether you want to sell that stock at a later date
19:30
or keep it, you know, if you've got eBay in there with GameStop,
19:34
you might be like, actually, it's quite a good deal
19:36
and I want to keep my shoes, but you get half cash.
19:38
So can I on this just play a clip that I heard in the financial times?
19:43
There was this journalist that basically played
19:46
a little bit of his interview.
19:47
It was the weirdest interview you've ever heard.
19:50
Yes, and they're like, how are you going to pay for this?
19:52
And he sounds like he's had a joint and he also sounds like
19:57
just so unbelievably cocky and arrogant,
20:00
but also like, they're like, so how are you going to pay for this?
20:03
And he's like, I'm going to do this in this.
20:05
Like, let me just play it.
20:06
It's like a two-seeing clip.
20:07
Walk us through how you could get to that price and how it would work.
20:14
So on our website, it's half cash, half stock,
20:20
but the details are on our website.
20:25
I'm just trying to understand where the rest of the money would come from.
20:29
It's half cash, half stock.
20:32
I hear you.
20:36
I'm just saying that that math doesn't get you to the price that you're offering.
20:46
Sorry, that's a pretty straightforward question.
20:48
I don't get it.
20:49
Like, where's the rest of the money coming from?
20:52
Yeah.
20:53
And so part of it's with DS.
20:55
And they've got about $9 billion on their balance sheet, name stop.
20:59
And the rest is from a bank, so the rest is DS.
21:02
So they've got the money.
21:04
It's like, people are kind of looking at it and saying,
21:07
this is not going to happen.
21:08
It's going to be a car crash blah, blah, blah.
21:09
But it's actually like, and the other thing that I,
21:12
and I can't remember what business it is,
21:14
but he actually has had some successes here.
21:16
He's not some random guy that's never on a business.
21:19
He's ex.
21:20
Oh, Chewie.
21:21
Yeah, that's right.
21:22
So he was ex Chewie.
21:23
And Chewie was like,
21:24
is it pet business?
21:25
It's pet business.
21:25
And it's like a subscription pet business.
21:28
And I'm so excited, pet business.
21:29
I don't think love is a pet business.
21:32
No, but like, yeah, exactly.
21:33
It was like right in the sweet spot of everyone
21:37
buying pets in COVID.
21:39
Yeah.
21:39
I guess what I find fascinating, like prices, cash,
21:43
your money aside, what do you feel?
21:44
Like, they're just such different businesses.
21:47
You've got a physical video game store network.
21:52
And online, I mean, they're not that different, actually.
21:55
Now, like, you know, they're selling shit.
21:57
I don't know.
21:58
Yeah.
21:59
But if I was sitting over, like, hang on.
22:01
You really, really need to convince me
22:03
about how these two coming together
22:05
will be better for shareholders and investors.
22:08
Like Amazon and eBay coming together.
22:10
Easy, boom.
22:11
Yeah, bigger, better, scale, yeah.
22:13
He's being cagey about the whole thing.
22:15
He's not relieving much away, which I think
22:17
makes the whole thing interesting.
22:19
But can we talk about his bonus?
22:20
Yeah, so this is the juicy bit.
22:22
So in January this year, he was given a bonus,
22:28
but the trigger was that, in order to be paid out,
22:31
was that GameStop's value.
22:34
So it's market cat, the value of the company,
22:36
had to reach 100 billion.
22:39
Now, it's at 12 billion right now.
22:41
So not really on track.
22:43
Not really on track.
22:44
So buying a company four times your size
22:49
is one very quick way of getting a bonus.
22:51
Getting closer, yeah.
22:52
Oh my god.
22:53
Kind of clever.
22:54
I know.
22:55
I mean, I've got it.
22:55
It really blows my mind that you can buy businesses
22:58
and automatically just swallow up the value.
23:01
And the business has just added all of this,
23:04
like, technical value in terms of how it's...
23:06
Well, it's like, one plus one is supposed to equal three.
23:09
And that's how you kind of, yeah, get it across.
23:12
This whole situation sounds very similar to me
23:14
to the whole Netflix Warner Brothers take over
23:16
that we spoke about for months.
23:18
At least there were similar sizes though, right?
23:20
Like, and similar businesses.
23:21
Similar businesses.
23:21
You could see the synergies.
23:23
You could, yeah, this just feels very opportunistic.
23:26
And the more opportunistic,
23:28
the harder it is to convince shareholders.
23:30
So, yeah.
23:30
Also, swallowing up a big business like the systems,
23:35
the operations, it's...
23:37
We're seeing it was zero at the moment.
23:39
They bought a massive payments company in the US,
23:41
which was the biggest acquisition they've ever done.
23:46
And the digestion that it takes to,
23:48
even if you've got two staff doing the same role,
23:51
you have to get rid of them.
23:52
There's just so many more risks
23:55
if you're buying a bigger business
23:56
than integrating one that's a bit smaller.
23:58
And so anyway, it's super interesting.
24:00
Part of me wants this to go through,
24:02
just because I think it's so interesting.
24:03
I know.
24:04
Like, I want this to happen.
24:05
Even though I have no idea if it's a good idea.
24:07
Yeah.
24:08
I just think that it's juicy and I'm into it.
24:10
What I was gathering,
24:11
all the time to have spoken about meme stocks,
24:13
is that the value, the value in adverted comments,
24:17
is fake because it's been really pushed up in value
24:22
by all these people buying it.
24:23
So to think that they're then going to use that kind of fake value
24:28
to go and then acquire something really valuable,
24:31
it's quite clever.
24:32
It's not fake, right?
24:33
That's how she prices move, supply and demand again.
24:36
You know what I'm saying?
24:37
That's just, there was just a ton of demand
24:39
in a short space of time.
24:41
But the sheer prices are a flexion of the value of the company.
24:43
Surely people at this point just want to be the next meme stock.
24:46
Yeah, but I mean, it's hard, right?
24:48
Because you do have to be careful
24:50
because if you go up, you know, four X,
24:54
your sheer price and then you can come down pretty quickly.
24:56
It's like, but this is a really good example
24:59
of why high sheer prices and high valued companies,
25:04
it gives you options.
25:06
You know, it's like, if you were Microsoft
25:09
and your sheer price is doing really well,
25:11
you know, the flexibility that gives you to, you know,
25:14
attract good talent by competitors, like all of that.
25:18
And you kind of get into the circle of death
25:19
and your sheer price is falling,
25:20
you're having to cut staff,
25:22
you're kind of probably dipping into your cash reserve.
25:24
Like there's just, you can be quite a cycle.
25:27
You see it with so many different types of businesses as well,
25:29
like in New Zealand, there's not a lot of hospitality
25:33
and you, you know, when something opens up,
25:35
you've got a flux to it and gets really excited.
25:36
And then when they're, you know, sort of bored
25:39
or sick of it, they move on
25:40
and then all of a sudden it's just, you know, it, yeah.
25:42
I think you've seen a lot on lots of different industries,
25:44
like the Lululemon that we spoke about last week, you know,
25:47
they were really hot and cool for a while
25:48
and now they're really struggling.
25:50
And I think as soon as you start struggling,
25:51
it's just so hard to climb back up the hill.
25:53
And the whole, like, the whole job of the CEO
25:56
about, like, is to increase your sheer price.
26:00
Because, and if you increase your profits,
26:01
then the sheer price will react accordingly.
26:03
So it's like, they're kind of a glorified salesperson
26:08
of, like, how do you get more people interested in your stock?
26:11
See, the aid delivering consistent profits
26:13
will be, you know, hoping that you become a meme stock
26:16
and...
26:17
Rufus it.
26:18
I really have never heard you ever talk about someone
26:22
doing a hostile take of a bird that was a woman.
26:25
And I was thinking about this.
26:27
I was like, God, the amount of confidence
26:29
to go out publicly and say you're taking over a business
26:32
is something else.
26:33
I cannot imagine how sorry to say it,
26:37
but you must be quite arrogant.
26:39
Like, I can turn this business around.
26:41
Everyone vote for me.
26:42
It's pretty bossy.
26:44
I mean, if there was more woman running businesses,
26:47
we probably would see it, I reckon.
26:50
It's just a way to create more value for shareholders
26:52
at the end of the day.
26:53
That's all they're trying to do.
26:54
And if you're invested and you own shares
26:55
as a CEO or as a founder in that business,
26:58
you know, you just want to create more and more value.
26:59
And if that's the way of doing it,
27:01
yes, I mean, this is a bit of a stretch.
27:03
But we'll see.
27:05
We'll keep you posted.
27:07
Coming out after the break,
27:08
we're going to get into a conversation
27:10
that it seems everybody is having.
27:12
AI job losses and basically what is happening
27:15
to businesses and the job market.
27:17
But before we dive in,
27:18
here's a quick word from today's sponsor.
27:20
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27:22
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27:24
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27:26
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27:28
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27:30
Yeah, I feel like pre-2000s,
27:32
most investing focused entirely on profits
27:35
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28:01
Oh, wow, back at this conversation.
28:05
Say, I am starting to cost people their jobs.
28:08
Wow, I don't know if you've heard that before.
28:11
Big shopper.
28:12
Breaking news, I heard it first of the curve.
28:15
No, so there's a huge amount happening
28:17
in the actual cutting of.
28:20
Through the site in the AI space.
28:21
I was like, oh, wow.
28:23
Another big one.
28:24
No, I mean, we mentioned this last week of the week before.
28:26
We've got a friend who, her partner, works at Meta in the US
28:30
and they're doing 20% job cuts.
28:32
We're now seeing this across a huge amount of tech companies.
28:35
Amazon is cutting 16,000 jobs.
28:37
PayPal is cutting 20% of its workforce.
28:40
Oracle, Coinbase, UPS, these are just like tens of thousands
28:44
of people are looting their jobs.
28:47
And it's not just across tech, it's across lots
28:49
and lots of other industries.
28:52
Over 300,000 people have been laid off
28:55
in the first four months of 2026 in the US, which is huge.
28:59
And this is up over 30% on last year.
29:04
Now, yes, there's some of it is a function
29:07
of the underlying economy, but this is a 30% increase
29:11
on last year is not just because of the economy.
29:14
There's a structural kind of change going on here.
29:17
And it's AI.
29:18
Whether you're a business cutting staff,
29:21
or you're a business like Spotify or IBM
29:23
that are like, we are just having a hiring freeze essentially.
29:27
And we're not hiring new people.
29:29
We're just getting ever more efficient with AI.
29:32
It's not good if you're a job seeker.
29:36
It's not good if you're a job seeker.
29:37
It's not good if you're trying to get an entry level job.
29:40
It's not great if you're a middle management.
29:42
Like, I think there's a lot of people
29:45
that will be feeling sort of scared and unsure
29:49
about the landscape and the industry that they work in
29:51
and what the changes are going to do.
29:54
And the Anthropics CEO who owns Claude,
29:58
Anthropic owns Claude.
29:59
We love Claude.
30:01
Not sponsored by, please sponsor us.
30:03
Obsessed with Claude, which is the,
30:06
or one of the, depending on where you believe
30:09
the biggest AI company in the world,
30:11
they've warned that AI could wipe out about half
30:14
of all entry level white collar jobs.
30:16
What is white collar?
30:16
Is it at a desk?
30:17
Yeah, yeah.
30:18
So it's like, your office, admin, your marketing HR,
30:22
you know, that kind of...
30:23
I mean, dare I say it.
30:24
Causes a lot of those jobs.
30:27
You know, it's disproportionately women.
30:28
Especially if you've taken a break,
30:30
a lot of women go back into those types of jobs
30:32
after having kids.
30:32
And you know, some of the most protected
30:34
is blue collar jobs, which is like physical labor.
30:37
Like, tradies, like...
30:39
So it's my life, all the hatred.
30:40
Hutch is...
30:42
Majority men as well.
30:43
So...
30:45
Don't love it.
30:46
Don't love it.
30:46
But also, there's a lot of articles and news
30:50
coming out about like the amount of jobs that AI will create.
30:55
I don't even think that we've scraped a surface of that.
30:57
Like, the internet created so many incredible job opportunities.
31:01
You know, people being able to start businesses
31:03
in their living rooms.
31:04
I think we look that on to the bit of the fear mongering
31:07
of like, everyone's going to lose their jobs,
31:09
but I think this is such a new paradigm
31:11
that we haven't even entered years.
31:14
We don't know the possibilities.
31:17
Yeah.
31:17
And I think that there's a real...
31:20
There's not just the fear around the job losses.
31:22
There's also, understandably,
31:26
a huge amount of women who don't want to adopt AI
31:31
for ethical reasons, for environmental reasons,
31:34
which I completely understand.
31:36
Did you see that race with a spin clip?
31:38
Yes.
31:38
And this is actually something I wanted to bring up.
31:40
So for anyone that's missed it,
31:43
in fact, let's just play it
31:44
because you may have seen a bit of it online,
31:46
you may not have heard the whole clip.
31:48
I think it's time to learn about AI.
31:50
I was with 10 women at a book club yesterday
31:52
and I said to the 10 of them,
31:53
how many of you guys use AI?
31:56
And only three of them use AI.
31:58
And then I said, how many of the three of you feel like
32:01
you really know what you're doing?
32:02
Are they're using it the right way?
32:05
And that was only one person.
32:06
So if three out of 10 women are the only ones using AI,
32:11
that means 70% of that group is not keeping up.
32:15
The thing I've learned about technology
32:17
is if you don't get a little bit of understanding
32:19
from the very beginning, it just speeds past you.
32:23
So you have to have little bits of learning just to keep up.
32:26
And let's get real.
32:27
Our kids are all using this every single day.
32:29
I think we should learn the basics together
32:32
and learn some really good tools
32:34
that are gonna make our everyday lives easier and better.
32:38
Do you want me to share what I'm learning with you?
32:40
It's time.
32:41
It's time, people.
32:43
There's so many things I want to say about this,
32:45
but firstly, who cares the reason why I race with this,
32:49
why I race is talking about this.
32:50
So many people are getting up and arms about
32:52
maybe she's like backing an AI company
32:53
or owning one or whatever.
32:55
I don't care.
32:55
I think what she's saying is so true.
32:57
So totally.
32:58
And I use AI for so much that we would have otherwise
33:01
had to pay staff for it.
33:03
It's boosted my productivity enormously.
33:04
I'm trying to upskill myself so that I can help our staff.
33:07
Like if we had people in the curve who were really resistant,
33:11
you do need to give more context for the importance
33:14
of jumping on the bandwagon.
33:15
It's not just, oh, it was built by men and therefore,
33:18
we need to have more.
33:19
There's so many reasons why.
33:21
And your point around jobs popping up
33:24
that we didn't even know, yeah, that's one thing.
33:26
But if you want to work in an industry or stay relevant,
33:31
you kind of can't change the fact that this is the way
33:34
that the world is moving.
33:35
Because it's moving this way.
33:36
And I think there's a lot of people who feel
33:38
like they want to put this down in the ground
33:40
and say, well, I'm just not gonna jump on board.
33:42
And I fully understand the reason for wanting to do that.
33:46
But it's fear driven.
33:47
But it's also us that's gonna miss out.
33:48
Well, you individually, that's fine.
33:50
And there was this clip, I listened to an amazing podcast
33:52
that shameless put out, shameless media.
33:54
It's an Australian podcast brand.
33:56
I think the way they spoke about it was just really interesting.
33:58
And we'll pay a tiny clip,
33:59
but I'll also put the link in the polka show notes
34:01
because I think listening to the whole episode
34:02
would be really valuable.
34:04
All three of us sitting in this room right now are writers.
34:07
I understand the fear that AI could reduce writing jobs.
34:12
But the worst possible thing I could do as a writer
34:15
is just sit with that and not do anything about it.
34:18
You have to be pragmatic in this life.
34:20
If this is going to change the industry
34:23
and you want to stay in the industry that you love,
34:26
unfortunately, you have to play by the rules of the game
34:28
and the rules of the game are constantly changing in media,
34:31
constantly changing in our lives,
34:32
now that technology is so prominent,
34:34
you cannot just sit by and watch it happen
34:36
if you want to succeed individually,
34:39
you have to eventually play by the rules everyone else is.
34:43
It's also like with everything, right?
34:44
It's like with cell phones.
34:45
It's like, oh, I don't need a computer in my pocket
34:49
all day, every day.
34:51
Yet now billions of people around the world have it.
34:54
When Apple came out with computers even,
34:57
and they were trying to say they wanted one and every home,
34:59
and everyone's like, why?
35:00
You only need that.
35:01
The world just changes.
35:03
It's like, has brutalism.
35:04
It sounds like get on board or move out of the way.
35:08
Sorry, that's nice.
35:09
But you know, and you don't have to be immersed in AI
35:13
all day, every day.
35:14
Just start with the basics.
35:17
I think there's a lot of people that are scared
35:19
or I have to set aside a dedicated day
35:23
to start on it or whatever.
35:24
Just you don't.
35:25
Just start.
35:26
Honestly, what's that within investing?
35:27
Just don't make it a massive big thing
35:30
that you need to know everything about.
35:31
Just be curious.
35:33
Start using it a little bit each day,
35:35
and then you become, you know, it's like TikTok.
35:38
When I first started using TikTok, I was like,
35:39
oh my gosh, what is all these features?
35:41
And then now.
35:45
But you know what I mean?
35:46
Just like with any new thing, there's a bit of uncomfortableness.
35:50
And it's like learning any skill or any new technology.
35:54
It just takes time.
35:55
You're not supposed to be an expert from day one,
35:57
but just don't bury your head in the sand.
36:01
I also just wanted to point out that 70% of HR roles,
36:04
75% of admin roles, the percentage is enormous for women
36:09
and the roles that are going to be potentially eaten up
36:13
by AI in the next five years.
36:15
If you are in one of those roles, but you're adopting AI,
36:20
then you'll be even more valuable to the business.
36:22
So they'll use you because you'll be with the technological
36:26
changes that allow you to be more productive
36:28
to see the opportunities to still be valuable to a business.
36:31
Don't just sit around and think, oh, I'm in one of those roles.
36:35
I mean, you're redundant, yeah.
36:36
Like, for example, if you're a personal assistant,
36:38
of course you'd be sitting there thinking, shit,
36:41
there's like Claude prompts that get you a personal assistant
36:44
in two hours, but actually maybe you could flip it
36:46
and say, I could be a personal assistant
36:48
or, you know, 100x the amount of people I work for
36:52
by an automating.
36:53
Totally, instead of having 10 clients as my max,
36:56
I will now be able to have 100s.
36:57
More of those, you know?
36:58
Speaking of the ethics, though, I watched a snippet
37:04
of the Diary of CEO in Scott Galloway.
37:06
Oh, yes.
37:07
So fascinating.
37:08
So Scott Galloway obsessed, yeah, tried to get on the podcast.
37:12
Like, I saw a club of him this morning,
37:14
and I honestly, it was about 7 AM, I started crying.
37:17
He was talking about how much he loved his mum
37:19
and how he's still grieving his mum
37:21
and how grief is just receipts for love.
37:23
And he's this six-year-old man who's there crying for the,
37:25
you know, grief, how much he loved his mum,
37:28
who is a single mother, who raised him to have confidence
37:30
and do all the stuff.
37:31
And I was just like, you're a beautiful representation
37:33
of what masculinity could be.
37:36
And like, what a brilliant role model.
37:38
Yeah, the way he can spit out statistics, I'm just amazing.
37:42
Yeah, he's not numbers to slicks.
37:44
Like, he is definitely not.
37:47
But anyway, he was saying that your view on AI
37:52
depends on how much you earn.
37:54
And I was like, interesting.
37:56
And he was saying that people earning over, say, 200K a year
38:00
tend to love AI, because they're the ones
38:02
that are invested in the stock markets.
38:04
It's been great for their investments.
38:06
Like, it's all the tech companies, the S&P 500,
38:08
all of that has done incredibly well, mainly due to AI.
38:12
They're also the ones that don't feel
38:15
the rising energy costs from the power that AI is consuming.
38:19
Can you explain that?
38:20
So AI is a huge energy consumer.
38:23
And that has also led to the rise in energy prices
38:27
because they're using so much more of the grid
38:30
in the electricity.
38:31
So if electricity bills are going up, say, 10%, 20%.
38:36
If you're a high income earner, you don't really feel that.
38:40
And you've been affitting because you've
38:41
got your money invested in the stock market.
38:43
Whereas lower income earners, they
38:45
don't have any money invested in the stock market,
38:47
or very little.
38:48
They're not getting that benefit.
38:49
All their feeling is the energy costs going up.
38:53
And so they're also probably more worried about their jobs.
38:57
Like, AI is really creating a wealth divide
39:00
from the wealthy, the unwealthy.
39:02
As if we don't already have that large enough.
39:04
If you've got money that you invested in the stock market,
39:07
that's been affitting from AI.
39:08
You're loving AI because you're seeing your investments go up.
39:12
That split is just getting more and more and more.
39:15
I think another interesting point in that podcast
39:18
you're talking about was the idea that he doesn't actually
39:21
believe that jobs are going to be overly lost or destroyed.
39:26
And it's quite interesting because we can explain what he means.
39:29
He said it will create jobs rather than destroy them.
39:31
Which is interesting.
39:32
I don't know if you'll agree with him or not.
39:34
But I've heard a lot of people say a similar rhetoric,
39:38
which is essentially, yes, AI can fast track a lot.
39:42
But what it then does is increase demand, too.
39:45
So there's still more demand for people
39:47
to be working within those roles.
39:49
For example, a medical body scan, something that AI is
39:54
starting to do a lot of it, it's almost like it's not
39:58
decreasing the value or the need for people or doctors
40:01
to be involved in that part of a product.
40:03
Because AI is making it more accessible.
40:05
Therefore more people want to use that product.
40:07
Therefore actually the demand goes up from a job perspective.
40:10
Well, that's what he was saying with radiologists.
40:12
Like they've been using AI for so long.
40:15
It was supposed to be wiped out because everyone would be able
40:17
to not go in and see a radiologist.
40:19
But that's just allowed them to grow and speed up
40:23
and see more clients and all of that.
40:24
I went to get a mole map when I was in New Zealand.
40:27
I was like, how do you know she was putting them
40:28
in the computer?
40:29
Like she'd take a photo, go straight to the computer,
40:30
and then it's like, she's like, oh, it's AI.
40:32
Decides whether it's cancerous or not.
40:35
And I was like, how long have you been using this technology?
40:37
And she said for about four years.
40:40
And I was like, how long have you been using this technology?
40:42
Like, am I paying for quality?
40:44
Well, I was also like, OK, how can you trust this?
40:46
Like, if she'd said the last few months,
40:47
somebody would be like, OK, can you do a human check face?
40:49
Yeah, keep your microscope up.
40:52
And she said, yeah, we've been using it for like four years.
40:54
And I was like, here I am being like, oh, I knew
40:56
a shiny thing.
40:57
And they're like, go on, get on board, guys.
40:58
We've been using this for like years.
41:00
The point here is, don't freak out too much.
41:03
Start using AI.
41:04
What happens to TBC?
41:06
No one really knows.
41:07
But the best thing that you could do
41:09
if you want to stay engaged in the workforce
41:11
is try and be open-minded.
41:14
Yeah.
41:18
Uber has reported its financial results this week.
41:23
Mm-hmm.
41:24
We're in reporting seasons.
41:25
Lots of companies reporting.
41:26
But Uber was interesting because it highlighted the fact
41:31
that it had been impacted by the Middle East,
41:33
not because of oil, but it's got operations in the Middle
41:35
East.
41:36
And so people are obviously not visiting.
41:38
They're not using Uber in the Middle East.
41:41
Yeah, just I really love Uber.
41:44
I cannot deal with how shit they are in London though.
41:47
Oh, yeah.
41:49
Like at the quality of service, it's just annoying.
41:52
Is that because you're rating?
41:53
What?
41:53
Is that because if you're rating?
41:54
I love that you're putting on a new absolute gas lighter.
41:57
Absolutely not.
41:58
I know this shit, though.
41:59
They take so long in your way for many minutes,
42:02
and they're like, we've canceled.
42:03
And then the little thing's like, yeah, I'm like,
42:05
just come the direction.
42:06
Yeah, I'm like, it's a two-meter drive, like, don't do it.
42:09
And you're like, no, I'll just walk.
42:10
Yeah, it's so annoying.
42:12
They do over 40 million trips a day,
42:17
which is like double the population of Australia.
42:19
It's wild.
42:20
But anyway, I really like the CEO.
42:22
He's only been there since 2017.
42:24
But he and the whole ethos of Uber is to become the super app.
42:29
So they want to become, I guess, the app for convenience.
42:33
So right now, they've got Uber Eats.
42:34
They've got delivery.
42:36
They've got the normal ride hailing service.
42:39
Do you remember when they started doing this stuff as well?
42:41
And it was like, weren't weird.
42:43
I know, I put my keys in an Uber and send them to my friends.
42:45
It's like, what? No, they're going to steal it.
42:47
It's like, no.
42:47
And the groceries, Uber groceries, kind of thing.
42:49
Yeah, kind of thing.
42:50
Yeah, you kind of, I remember when they first
42:52
sort of coming out of it.
42:53
And I was like, oh, that's a bit odd.
42:54
And now, as they've started to evolve what they're offering us,
42:57
they just make so much sense.
42:58
It's so clever.
42:59
I just think there in such a sweet spot,
43:01
which of this convenience economy of people are busy.
43:05
People have less time.
43:07
They just want it to work.
43:08
And they are really becoming the app for everything.
43:12
And they have announced a recent partnership with Expedia
43:16
so that you can start to book.
43:18
Expedia feels like eBay a bit.
43:19
Don't you say, yeah, I'm a high school.
43:21
A 90's kind of, yeah.
43:22
But their whole ethos is helping people go get
43:26
and now travel in one place.
43:27
So to be able to book hotels.
43:30
But I started digging and they've actually
43:32
got a lot of things features that I didn't even know.
43:34
Like, there's this feature called Eats for the Way.
43:38
Which you can combine.
43:40
Like, if you're getting an Uber to work,
43:42
you can order your breakfast into that Uber
43:46
so that you can have your breakfast on the go,
43:48
on your way to work.
43:50
Like, imagine sending your kids to school
43:51
and their lunches in the Uber and they're just,
43:53
it's just, yeah.
43:54
My God, I just, anything that makes my life faster,
43:58
easier, I will pay through the hours.
44:00
It's just like, yeah, I was like, oh, my goodness.
44:03
That's so clever.
44:05
They're basically trying to make busy people's lives
44:08
easier and more convenient.
44:10
And they've also got this Uber one,
44:11
which is a membership model,
44:12
which 50 million people have signed up to.
44:15
10 pounds a month.
44:17
That's six billion pounds of revenue
44:19
that is on subscription.
44:21
So they can see that that's coming in each month.
44:23
It's giving, it's giving Amazon Prime.
44:25
Yeah.
44:26
Easier to sign up, doesn't want to get out of.
44:28
Yeah.
44:28
Yeah.
44:29
They've also got investments in kind of the Uber Eats
44:33
of Europe and delivery hero.
44:35
They've got, you know, the Uber of China and Singapore.
44:38
God, grab.
44:39
I did grab there.
44:40
Yeah, indeedy and China.
44:42
So they are, you know, got their little tentacles.
44:45
But they're the world's biggest taxi company
44:48
and they don't own any taxis.
44:49
Like they're literally just a tech platform.
44:50
And it's like Airbnb, the world's biggest accommodation provider,
44:54
but they own no hotels.
44:56
The interesting thing with this was Uber's IPO
45:00
was supposed to be the biggest things in sliced bread.
45:03
In 2019, everyone was like, oh my God, Uber's IPO-ing.
45:07
And it was the biggest IPO flop in US history.
45:11
And it lost $600 million on day one.
45:15
God, it's such a good example, though,
45:16
because everyone feels so far away with IPO's when they're,
45:20
and this is just the first chance
45:22
you have to buy shares, basically.
45:23
It's like, it's like lining up to buy the first iPhone
45:26
when it comes out.
45:27
It's just wait for the hysteria to die.
45:28
Yeah, it's like going to a restaurant
45:29
and there's still got teething issues.
45:31
And it runs there.
45:31
It's like just wait a few months.
45:33
Let it die down.
45:34
It might be great.
45:35
It might be shit.
45:36
Like, I don't know, just give it a minute.
45:38
It's not the only time you can buy shares.
45:40
It's like, chill out everyone.
45:41
Also, people who bought at IPO and then sold
45:43
in the last few years, because it hadn't done very well,
45:46
have actually done worse than people
45:48
that have bought more recently
45:50
and seen it grow steadily over time, you know?
45:52
Like, a lot of people do sell when they see it,
45:54
falling and they panic.
45:55
And that's the exact opposite of how you talk about it, isn't it?
45:59
But it'll be interesting to see
46:00
how the oil price impacts Uber.
46:03
Because they don't pay for, you know, their petrol,
46:07
that's on their drivers.
46:09
And so if they get more and more squeezed,
46:12
you know, whether there'll be some kind of
46:14
amendment to the percentage that they pay to Uber drivers
46:17
or what.
46:18
Because what is it at the moment?
46:19
I feel like it's around, of like a 20 pound ride,
46:21
Uber takes about four pounds of that.
46:24
Yes.
46:25
And then on the driver, they have to pay for,
46:28
they're a contractor basically.
46:30
So they're an independent, they have their own business
46:32
and they pay for petrol and they pay for their car
46:34
and insurance.
46:35
And then on the other day pay, they don't get any of that.
46:36
Like it's, yeah, it's very much,
46:38
you can kind of tap in, tap out in terms of, like,
46:41
being an Uber driver or not.
46:42
But there was some big tax changes in the UK
46:45
that have actually impacted this result
46:47
by a billion, billion dollars.
46:50
And that was that because they don't hire
46:53
Uber drivers as employees, their contractors,
46:56
they kind of got to, Uber was able to kind of
46:59
skirt around paying VAT, so like GST,
47:02
or paying tax only on that four pounds.
47:05
Whereas, oh, that's so clever.
47:07
They, the UK government was like, no, no, no.
47:10
The whole service is 20 pounds.
47:12
You need to pound the 20 pounds.
47:13
And so in London, that's why it's probably,
47:17
you know, these less drivers, it's more expensive
47:19
because Uber has to pay on the full-twenty.
47:21
Right.
47:22
Outside of London, they manage to get away with it.
47:24
So they're only paying on the, on the Uber fee portion
47:27
that, that VAT amount.
47:29
So it's been a short-term impact, but yeah, I don't know.
47:33
I just think Uber, the way that they think about
47:35
the long-term, it's very different to a lot of businesses
47:38
and a lot of CEOs that are very short-term focus.
47:40
Like, this business that they just want to be,
47:42
there's this super app that everyone uses for their lives.
47:46
They're also doing what they say.
47:47
They want to be the convenience app.
47:48
They want to do, they're actively delivering
47:51
on what they're talking about.
47:52
I wonder if this oil crisis will,
47:55
because if Uber drivers are having to pay much more
47:59
for their fuel, and then they're making a lot less per ride,
48:04
I wonder how Uber would balance that out,
48:07
because it definitely doesn't pay long-limes.
48:10
Maybe.
48:11
Which they are in turn.
48:12
Yeah, yeah.
48:13
God.
48:14
I was actually just thinking, imagine if you could
48:16
Uber and ERA playing.
48:17
No, but I think that's the travel.
48:19
I'll just say, because I remember actually them saying
48:21
that was something in the future they wanted.
48:23
Yeah.
48:24
Imagine if it in Expedia, or like, yeah, they merge
48:26
and they just come to airline.
48:27
God.
48:28
I will say, digital experience of ordering an Uber,
48:32
very, very easy for someone that struggles with tech.
48:35
I hate booking flights.
48:37
I always, if the market needs to do it on an Uber app.
48:40
I remember reading something about Uber and I was like,
48:41
psychologically, when you can see it for customer service,
48:45
when you can see the car coming,
48:47
and you can see it's four minutes, five minutes,
48:49
even if it was 20 minutes,
48:51
and you could see the car,
48:52
you are way more satisfied as a customer
48:57
than say a taxi company and having no visibility.
49:01
And that taxi company could,
49:02
all the rides could come in one minute,
49:04
but because you don't see that,
49:06
there's psychologically seeing a countdown
49:08
or seeing having that control is like,
49:12
there's a lot in terms of customer psychology,
49:15
but yeah, I honestly reckon anything,
49:17
it'll be, I mean, to be honest, Airbnb,
49:20
I would be three Tinder foes, Airbnb.
49:23
I'd be quite scared.
49:25
And also with an app, if people get comfortable using it,
49:27
the options aren't endless, you know?
49:29
Why do you do think then that the idea of accommodation,
49:32
you might be able to do through Uber,
49:33
so like book accommodation,
49:34
the same way they do with Airbnb?
49:36
Because I feel like Airbnb is going through,
49:37
like down and down and down,
49:38
not necessarily as a business,
49:40
but just the quality and the standard and everything.
49:43
I've really gone off it.
49:44
I wonder how Uber would,
49:46
if you can do everything in one app, right?
49:48
Like if you can do, I need to order an Uber,
49:50
I need to stay there for four days,
49:51
and then I need to get back to the airport or whatever.
49:54
I would just do it all in Uber, like, genius.
49:56
If the business is genius, you know?
49:59
Anyway.
50:00
Before we answer the community question,
50:04
we do actually on the whole job front.
50:07
We're looking for a junior editor,
50:08
and we've actually put a little job description together.
50:10
AI can't take this over just yet.
50:11
So if you know anyone who is a really good editor
50:14
or wants to get into podcast production,
50:17
or perhaps is amazing at creating little highlights
50:21
for socials, we would definitely love to hear from you.
50:23
So we'll put a link to that role in the podcast show notes.
50:26
We really want them to be there.
50:28
And podcast show notes.
50:29
We really want them to be London based,
50:30
so ideally you're based here.
50:32
So just get in touch, we'll put the details
50:34
in the podcast show notes,
50:35
or send it to anyone that you know that might be great.
50:37
Okay, community question.
50:39
I've got an emergency fund in a saving account.
50:41
It's only earning 1.55% interest.
50:44
Laughing face emerging.
50:45
She's like, yeah, she's like, no's.
50:47
I've been contemplating moving it to a cash fund.
50:50
Yeah.
50:51
It's still accessible anytime,
50:53
and it has a 2.98% return as a sabbat idea.
50:57
I love the, ha ha.
50:58
Why is the love?
50:59
Crying face.
50:59
Surely is it because she knows the answer is obviously yes.
51:03
Look, I think the first thing here is there's a savings account
51:07
and then there's a cash fund.
51:08
And a cash fund is actually, it's like a managed fund,
51:13
but it's a professional that is managing,
51:16
managing a fund of lots of cash products.
51:20
So they are in there getting the best term deposits,
51:23
you know, like it's not, you're not in one product,
51:26
like a savings account, you put it in the bank,
51:28
and you get it in a way it's some kind of a product.
51:32
It's not just sitting in a transaction account.
51:33
So there's a little bit more risk.
51:35
But, and that's why she's getting 2.98% return
51:38
on that cash fund.
51:39
Is a cash fund also just like a high interest savings account
51:42
or are they different?
51:43
So they're usually with banks,
51:44
the kind interest savings accounts,
51:46
you know, you've got a transaction account,
51:47
savings account, and then cash funds are usually
51:49
with like managed fund providers.
51:52
What the cash fund is invested in is term deposit,
51:56
but they're trying to get the best deal for you, you know,
51:59
and they might be taking a little bit of more,
52:01
you know, some may be some higher risk term deposits
52:03
or some longer term deposits to get a higher rate.
52:05
Like there's, they're kind of just, yeah,
52:07
really trying to work your, the cash for you.
52:10
Am I right in thinking a cash fund is actually like,
52:14
to be getting 2.98% return, it's kind of similar
52:18
to what you can just get in a high interest savings account.
52:20
Like it's not very, it's kind of almost,
52:22
I thought less than what you can get a high interest
52:23
savings account.
52:24
So yeah, yeah, I mean, it depends where you are in the world,
52:27
right? Like some, some get better returns than others,
52:30
but I mean, I would say, yes, put it in the 2.98% cash fund.
52:34
Basically, you're getting better return
52:36
and you can access your money, go for it.
52:37
Yeah, yeah, exactly.
52:38
We all know inflation is about three, just above 3%.
52:43
So if you're getting 1.55, like you are right now,
52:46
you're going back when you're going backwards,
52:48
sliding off the slides, so yeah, not advice,
52:51
but probably think about it.
52:54
Just make sure with the cash fund,
52:56
it will probably take a couple of days to get out
52:58
because it is a managed fund.
52:59
So you have to like, some middle of a draw
53:00
and like all of that.
53:01
So just be aware, maybe it's half and half,
53:04
or maybe 80% is in a cash fund, 20% is still on that 1.55,
53:08
but you need to be able to access that
53:11
like at the top of the head.
53:12
Also on that, we have our latest IOU episode,
53:15
which cannot last week, it's on emergency funds.
53:18
It's literally on this, it's with Lucy Blackson
53:20
from Sheet You Should Care About,
53:21
how much you should have set aside, how to work that out,
53:24
where to put the money, et cetera.
53:25
So for anyone that wants to find out more about that,
53:28
definitely listen to that episode.
53:29
Hope everyone has a great week and enjoyed this episode.
53:33
Any feedback, as always, we would love to hear,
53:35
comment wherever you're listening,
53:36
share it with a friend, oh, we would love a review.
53:39
I'm on a tie-raid to get tie-raids, maybe not the right word.
53:43
I'm on a bit of a mission.
53:45
I want to have more reviews.
53:46
We only have like 1,000,
53:48
and there's way more people that listen to this podcast.
53:50
So can you please, if you've listened to an episode
53:52
and you liked it, give us a couple of stars, maybe five.
53:55
Five is good.
53:56
Yeah, definitely generous.
53:57
Yeah.
53:58
And on Thursday this week,
53:59
we have our deep dive into like women having kids later.
54:02
So really keen to see how you guys find that.
54:05
Love your feedback, have a great week.
54:07
See you.
54:08
Bye.
54:08
Bye.
54:09
Thank you so much for listening to The Curve Weekly.
54:11
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54:14
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54:16
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54:17
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54:18
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54:19
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54:21
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54:23
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54:24
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54:27
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54:29
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54:30
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54:32
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54:35
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54:36
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54:38
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54:40
Okay, quickly, the Curve was created to empower
54:50
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54:51
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54:53
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54:56
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54:58
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54:59
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55:01
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55:03
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55:05
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55:08
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55:10
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55:12
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55:13
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55:14
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