Latest / What the Flux / Woolworths staff's costly strike | Nvidia under China probe | RBA holds cash rates… again.

Transcript

Woolworths staff's costly strike | Nvidia under China probe | RBA holds cash rates… again. · What the Flux

• 0:05
  Speaker 1: This is what no Flux.
• 0:06
  Speaker 2: I'm Brett and I'm justin and it's Wednesday, the eleventh
• 0:09
  Speaker 2: of December.
• 0:09
  Speaker 1: Juzzy Boy AMZ Bank has announced a new CEO will
• 0:13
  Speaker 1: replace Shane Elliott after nine years, and interestingly, the a
• 0:16
  Speaker 1: Z chair has compared this new CEO to picking up
• 0:19
  Speaker 1: a star soccer player on the transfer market. Apparently he's
• 0:22
  Speaker 1: worked in Europe, Latin America and Asia, so he certainly
• 0:25
  Speaker 1: traveled the world like a sta footballer. Now he's just
• 0:27
  Speaker 1: got to turn his footwork into some winning goals for
• 0:29
  Speaker 1: a Z's a bottom.
• 0:30
  Speaker 2: Line Ronaldo two point zero they call him.
• 0:32
  Speaker 1: Uh huh.
• 0:33
  Speaker 2: Now, Flexam, your credit scord can significantly impact your chance
• 0:36
  Speaker 2: of taking out a loan, even getting a mobile phone plan.
• 0:39
  Speaker 2: And if you don't know what your credit scorre is,
• 0:40
  Speaker 2: there is only one place to go. It is snack
• 0:42
  Speaker 2: Bang in the Flux app, So make sure to download
• 0:44
  Speaker 2: the app and check out your credit score.
• 0:46
  Speaker 1: This month three colorful stories Today Juzzy Boy, Let's do
• 0:48
  Speaker 1: it for our first. Woolworts has finally come to an
• 0:51
  Speaker 1: agreement with its warehouse staff after a seventeen day strike
• 0:55
  Speaker 1: which left stores empty and cost them millions in sales.
• 0:58
  Speaker 2: This is reminding me of Covidos all over again. Be manned,
• 1:01
  Speaker 2: So tell me what's going on here.
• 1:02
  Speaker 1: Well, Juzzy Boy, we know Woolworth's as the largest supermarket
• 1:05
  Speaker 1: group in Australia with thirty seven percent market share.
• 1:08
  Speaker 2: They're well ahead of their bitter archrival Coals, who has
• 1:11
  Speaker 2: twenty eight percent market.
• 1:11
  Speaker 1: Share, and it's growing our rival Audi, but the man.
• 1:14
  Speaker 2: A few weeks ago, fifteen hundred woolworth staff went on strike.
• 1:17
  Speaker 1: And this led to seventeen days of industrial action at
• 1:20
  Speaker 1: four distribution centers in Victoria and New South Wales.
• 1:23
  Speaker 2: That means no shelves in the warehouse were getting packed
• 1:25
  Speaker 2: and no shelves were packed onto trucks. The goat stores
• 1:28
  Speaker 2: and as a result, Juzzy Boy supermarket shelves were left empty.
• 1:31
  Speaker 2: And not only supermarket shells, liquor stores like Dan Murphy's
• 1:34
  Speaker 2: also had their shelves empty too.
• 1:35
  Speaker 1: But now Woolies has finally come to an agreement with
• 1:38
  Speaker 1: their warehouse staff.
• 1:39
  Speaker 2: But be man They've warned the seventeen day hiatus without
• 1:42
  Speaker 2: stocked shells has cost them a mozza.
• 1:44
  Speaker 1: We are talking one hundred and forty million dollars in
• 1:47
  Speaker 1: lost revenue and.
• 1:48
  Speaker 2: It's expected to hurt their expected earnings by sixty million baccarinas.
• 1:52
  Speaker 1: And the bigger winner here, of course is the little
• 1:54
  Speaker 1: red quote themselves coals.
• 1:56
  Speaker 2: So what is the key learning here?
• 1:57
  Speaker 1: Forcing customers to change their regular habits is like gifting
• 2:00
  Speaker 1: an own goal to your competitor.
• 2:02
  Speaker 2: Very soccer theme today, you see a man. Many Ossies
• 2:05
  Speaker 2: are loyal to their supermarket.
• 2:06
  Speaker 1: Go Big Red or Go Fresh food Cream.
• 2:09
  Speaker 2: In fact, be man. A recent survey show sixty two
• 2:11
  Speaker 2: percent of shoppers who shopped at Woolies in month one
• 2:13
  Speaker 2: were still shopping with Woolly six months later for their
• 2:16
  Speaker 2: main shop.
• 2:17
  Speaker 1: That is according to research think tank E sixty one.
• 2:20
  Speaker 2: And the Man. Interestingly, price wasn't the biggest influence.
• 2:23
  Speaker 1: Nope, it was all about the convenience as well as
• 2:25
  Speaker 1: unconscious habit of sticking to what you know you know
• 2:27
  Speaker 1: Breddy's in L three Deli section is back, lair h
• 2:30
  Speaker 1: and Josi wait. Woolies has disrupted the habits of their
• 2:32
  Speaker 1: loyal customers.
• 2:33
  Speaker 2: Which can not only prompt them to change now, but
• 2:35
  Speaker 2: adjust their habits into the future.
• 2:37
  Speaker 1: In fact, the unstocked shelves at Woolies is expected to
• 2:40
  Speaker 1: increase Coals's earnings by two point three percent this financial year,
• 2:43
  Speaker 1: according to Baron Joey.
• 2:44
  Speaker 2: So Woolies will be hoping that this drama is behind
• 2:47
  Speaker 2: them so they can focus on winning back their habit
• 2:49
  Speaker 2: forming customers. For our second story, China has opened an
• 2:53
  Speaker 2: antitrust investigation into US chip maker in Nvidia, the world's
• 2:58
  Speaker 2: largest provider of AI pros. Really heading up in the
• 3:01
  Speaker 2: AARs b man, So tell me.
• 3:03
  Speaker 1: More some background, Josie boy. The US government knows just
• 3:06
  Speaker 1: how important it is for US companies to produce computer chips.
• 3:09
  Speaker 2: Yep. The Biden administration has pumped billions of dollars into
• 3:12
  Speaker 2: US companies like Intel because they want to boost local
• 3:15
  Speaker 2: production of chippy's and reduce America's reliance on China for chippies.
• 3:19
  Speaker 2: But now be man in VideA, the American chip maker
• 3:21
  Speaker 2: is facing anti trust investigation from China, and of course
• 3:25
  Speaker 2: this means things are spicing up between the US and China.
• 3:28
  Speaker 2: It all starts from twenty nineteen when in Video acquired
• 3:31
  Speaker 2: in an Israeli networking company called mellanox a nearly seven
• 3:34
  Speaker 2: billion US dollars.
• 3:35
  Speaker 1: And here's where things get juicy. The Chinese government believes
• 3:37
  Speaker 1: this acquisition could violate China's anti monopoly laws.
• 3:41
  Speaker 2: Next minute, in Vidia share price was down two point
• 3:43
  Speaker 2: six percent.
• 3:44
  Speaker 1: And this is just the latest escalation of a real
• 3:47
  Speaker 1: growing battle for AI dominance between the US and China.
• 3:49
  Speaker 1: So what is the key learning here?
• 3:51
  Speaker 2: Those who control the best AI can control the world.
• 3:54
  Speaker 1: Think about it in many ways, in video is the
• 3:56
  Speaker 1: face of the AI tech revolution.
• 3:58
  Speaker 2: Get this. In Vidia currently holds between seventy and ninety
• 4:01
  Speaker 2: five percent of the market share for AI.
• 4:03
  Speaker 1: Chips, so hurting in Vidia could harm its ambitions to
• 4:06
  Speaker 1: continue to power AI around the world.
• 4:08
  Speaker 2: And that's exactly what China is doing.
• 4:10
  Speaker 1: See, the US is pretty concerned that China could use
• 4:13
  Speaker 1: AI to gain a military advantage over the US.
• 4:15
  Speaker 2: In fact, recently the US imposed restrictions on the sale
• 4:18
  Speaker 2: of AI chips to China.
• 4:19
  Speaker 1: So this move by China could be seen as a retaliation.
• 4:22
  Speaker 2: Either way, Dann. What's quite hilarious here is that the
• 4:25
  Speaker 2: US itself is also reportedly investigating in VideA of the
• 4:28
  Speaker 2: potential antitrust violation. For our third and final story, the
• 4:32
  Speaker 2: Reserve Bank of Australia has kept cash rates on hold
• 4:35
  Speaker 2: for the ninth time in a row in their final
• 4:37
  Speaker 2: meeting for twenty twenty four, the RBA must have some
• 4:40
  Speaker 2: emotional attachments to the number four point three five so
• 4:43
  Speaker 2: tell me more well.
• 4:44
  Speaker 1: The Reserve Bank of Australia is obviously Australia's central bank.
• 4:48
  Speaker 2: They're roles pretty much ensure the economic prosperity of the
• 4:51
  Speaker 2: people of.
• 4:51
  Speaker 1: Australia, to ensure the stability of the Australian currency.
• 4:55
  Speaker 2: And to maintain full employment in Australia.
• 4:57
  Speaker 1: And Jazi Boy, the most powerful lever that the RBA
• 5:00
  Speaker 1: has is its ability to move the cash rate up
• 5:03
  Speaker 1: or down down and the man.
• 5:04
  Speaker 2: After cranking up the cash rate from point one percent
• 5:07
  Speaker 2: to four point three five percent in less than eighteen months,
• 5:09
  Speaker 2: the RBA is now having a bit of a breather, yep.
• 5:12
  Speaker 1: In its final meeting of twenty twenty four, the RBA
• 5:14
  Speaker 1: has decided to pause the cash rate once again at
• 5:16
  Speaker 1: four point three five percent.
• 5:18
  Speaker 2: This is the ninth month in a row that the
• 5:19
  Speaker 2: rates have been paused.
• 5:21
  Speaker 1: And Jessy Boy, While the RBA is responsible for ensuring
• 5:24
  Speaker 1: full employment in the economy, they currently reckon that employment
• 5:27
  Speaker 1: is too hot right now.
• 5:28
  Speaker 2: So what is the key learning here?
• 5:29
  Speaker 1: While low unemployment is generally positive for an economy. It's
• 5:32
  Speaker 1: actually possible for employment to be over full. Yeah, sometimes
• 5:36
  Speaker 1: having too many people working can cause problems as well,
• 5:39
  Speaker 1: and this is called over full employment.
• 5:41
  Speaker 2: Let's play this outbe man. When nearly everyone in the
• 5:43
  Speaker 2: whole country has a job, businesses might struggle to find workers.
• 5:47
  Speaker 1: And then to attract staff.
• 5:48
  Speaker 2: They are for high wages, and the catch is that
• 5:49
  Speaker 2: the business has often raised their prices to cover those
• 5:52
  Speaker 2: extra costs, which can make everything more expensive, and this
• 5:55
  Speaker 2: is when inflation kicks in again.
• 5:57
  Speaker 1: The idea is to find a balance lots of but
• 6:00
  Speaker 1: not so many that inflation spirals out of control.
• 6:03
  Speaker 2: It's a pretty tricky juggling act, and the RBA doesn't
• 6:05
  Speaker 2: reckon that the economy's healthy enough right now to drop
• 6:08
  Speaker 2: the cash rate. The man I applied for a new
• 6:10
  Speaker 2: credit card last month and my credits cored dropped by
• 6:12
  Speaker 2: more than fourteen points. Wow, could not leave that personally
• 6:15
  Speaker 2: now fluxed down. If you want to see if your
• 6:17
  Speaker 2: credit score went up, if it went down, or just
• 6:18
  Speaker 2: stayed the same, there is only one place to go.
• 6:21
  Speaker 2: It's in the flux app. Make sure to check it
• 6:23
  Speaker 2: out to see how your financial behaviors might be impacting
• 6:26
  Speaker 2: your credit score.
• 6:27
  Speaker 1: Thanks for listening, and we'll see you on Friday.