Latest / What the Flux / Aus Govt vs Meta & X | Microsoft's big cut to Xbox | Temu's about to get more expensive

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Aus Govt vs Meta & X | Microsoft's big cut to Xbox | Temu's about to get more expensive · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm justin and I'm harsh deep and it's Monday, the
• 0:09
  Speaker 2: sixteenth of September.
• 0:10
  Speaker 1: AHG. We know the times have been a little tougher
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  Speaker 1: retailers recently, but in your report from KPMG warns that
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  Speaker 1: it's not getting better anytime soon. Get this. KPMG reckons
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  Speaker 1: the retail sector is in poor health and unlikely to
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  Speaker 1: make a full economic recovery until late twenty twenty five,
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  Speaker 1: particularly for discretionory items like clothing.
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  Speaker 2: Ooh, sounds like they're still a long way to go.
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  Speaker 2: Fluxpam ever asked yourself whether you can handle a major
• 0:35
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• 0:54
  Speaker 1: In three reflective stories.
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  Speaker 2: Today, let's get into it.
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  Speaker 1: For our first government wants to find social media platforms
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  Speaker 1: up to five percent of their global revenue if they
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  Speaker 1: don't stop the spread of misinformation.
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  Speaker 2: Just waiting for the barbs to be thrown by Eon
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  Speaker 2: musk here or what's going on?
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  Speaker 1: Okay, SAHG, Meta, TikTok and X. They've got more than
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  Speaker 1: four point seven billion monthly active users between.
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  Speaker 2: Them, and while there's likely to be some overlap between
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  Speaker 2: the users on the platforms, that's still a pretty big
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  Speaker 2: chunk of the whole world.
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  Speaker 1: And with the majority of the world on these platforms,
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  Speaker 1: it also means a lot of opinions and agendas and information.
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  Speaker 1: Oh yeah, and misinformation as well.
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  Speaker 2: So back in September last year, the UK passed new
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  Speaker 2: content moderation rules for online platforms like Meta and TikTok.
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  Speaker 1: Yeah. It put the obligation on those platforms to remove
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  Speaker 1: illegal content and misinformation.
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  Speaker 2: And if they didn't, they could face penalties of up
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  Speaker 2: to ten percent of global annual turnover.
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  Speaker 1: Now Australia's thinking, hey, we could do that too.
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  Speaker 2: Yeah. The Australian government has also said they want to
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  Speaker 2: stop the spread of misinformation online.
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  Speaker 1: And if this law passes, social media platforms in Australia
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  Speaker 1: will be find up to five percent of their global
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  Speaker 1: revenue if they fail to moderate and.
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  Speaker 2: No surprises here. Eon Mask has shot back and called
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  Speaker 2: the Australian government fascist for this proposed legislation.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: Social media platforms are increasingly being held accountable for the
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  Speaker 2: content they host.
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  Speaker 1: Especially when that content can cause real world pa.
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  Speaker 2: On the one hand, social media platforms want to promote
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  Speaker 2: free speech and open dialogue between their users.
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  Speaker 1: Hello Elomask, the free speech absolutist as he calls himself.
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  Speaker 2: But on the other hand, they have a responsibility to
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  Speaker 2: prevent the spread of harmful content and misinformation.
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  Speaker 1: Yeah, especially when it comes to things like deep fake material.
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  Speaker 2: Now, jazz x reported four point eight billion US dollars
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  Speaker 2: in revenue in twenty twenty three, so five percent of
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  Speaker 2: that would be two hundred and forty million dollars in
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  Speaker 2: potential Australian finds alone.
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  Speaker 1: Nar Actually, in the past, social media platforms have taken
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  Speaker 1: a bit more of a laid back reactive approach.
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  Speaker 2: Will take it down if someone reports it.
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  Speaker 1: But with these wapin finds in the UK and now
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  Speaker 1: potentially in Australia as well, forced them to be a
• 3:01
  Speaker 1: lot more proactive about stopping misinformation.
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  Speaker 2: For our second story. Microsoft is cutting six hundred and
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  Speaker 2: fifty jobs at its Xbox gaming division after its sixty
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  Speaker 2: nine billion US dollar acquisition of Activision Blizzard's a.
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  Speaker 1: Real time twister and another hit to the gaming industry. HG.
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  Speaker 1: So tell me what's going on here?
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  Speaker 2: Well, Jazz Microsoft, of course is a tech giant that
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  Speaker 2: was founded almost fifty years ago by Bill Gates.
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  Speaker 1: We know for its office products like Microsoft three, six, five,
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  Speaker 1: Sweet or Windows who could forget clippy on word as well, But.
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  Speaker 2: Microsoft also has a massive gaming division which includes Xbox
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  Speaker 2: and as of October last year, Activision Blizzard, the makers
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  Speaker 2: of Call of Duty.
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  Speaker 1: And actually Xbox has its own gaming division. Activision has
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  Speaker 1: its own gaming division, and there seems to be a
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  Speaker 1: lot of crossover between the two.
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  Speaker 2: So now Jazz Microsoft is laying off six hundred and
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  Speaker 2: fifty workers from its Xbox division, aka three percent of
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  Speaker 2: its total gaming stuff.
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  Speaker 1: The idea is to align the two company's post acquisition.
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  Speaker 2: But ultimately that means cleaning up the rest of its
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  Speaker 2: gaming division to make room for its new entrant.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: When a new tenant moves in the house gets a makeover.
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  Speaker 1: We often hear the word synergies when it comes to
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  Speaker 1: an acquisition.
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  Speaker 2: You know, when the merged companies work together to maximize
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  Speaker 2: productivity and reduce costs.
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  Speaker 1: Definitely reduce costs. Think job carts, merging departments, or even
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  Speaker 1: closing off underperforming parts of the business.
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  Speaker 2: And just this isn't the first time Microsoft has made
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  Speaker 2: redundancies since this acquisition.
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  Speaker 1: In fact, a she, it is actually the third time.
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  Speaker 2: Yeah, it laid off nineteen hundred staff in January.
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  Speaker 1: Then it closed Force studios in May.
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  Speaker 2: And now it's letting go of six hundred and fifty
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  Speaker 2: people from its Xbox division.
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  Speaker 1: And a she, Microsoft isn't the only company to trim
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  Speaker 1: away excess costs after a major acquisition. Yeah.
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  Speaker 2: Remember when Disney acquired twenty first century Fox.
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  Speaker 1: I do, and just days after the acquisition, it announced
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  Speaker 1: that Disney would lay off three thousand start.
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  Speaker 2: Now we'll have to wait and see if this is
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  Speaker 2: the last of Microsoft's gaming layoffs or if there's still
• 4:52
  Speaker 2: more to come.
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  Speaker 1: For our third and final story, Timu's parent company has
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  Speaker 1: seen its share price drop more than three percent last
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  Speaker 1: Friday after the U yes proposed new tariffs on its products.
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  Speaker 2: Looks like those team whose shopping holes might get a
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  Speaker 2: little pricier, tell me more.
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  Speaker 1: Okay, So, Team Who's become the new go to marketplace
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  Speaker 1: for consumer goods and.
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  Speaker 2: By goods we mean stuff so cheap it's practically free.
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  Speaker 1: And actually these goods are mostly shipped to consumers around
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  Speaker 1: the world directly from China.
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  Speaker 2: Team is owned by a Chinese company, Pindor Door, which
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  Speaker 2: is listed on the Nasdaq, and.
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  Speaker 1: Although tim Wu only launched in twenty twenty two, it's
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  Speaker 1: believed to have over one hundred and sixty seven million
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  Speaker 1: monthly active users.
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  Speaker 2: The app feels like Amazon had a child with a casino.
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  Speaker 1: But here's where it gets juicy, because up until now,
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  Speaker 1: any products under eight hundred dollars coming into the US
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  Speaker 1: have been juicy free thanks to the Deminimus rule.
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  Speaker 2: This little loophole has been a gold mine for fast
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  Speaker 2: fashion empires like Sheen and Timu.
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  Speaker 1: But late last week, the US government proposed new rules
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  Speaker 1: that would force fast fashion retailers to pay tariffs on
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  Speaker 1: these products, and.
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  Speaker 2: As a result, the share price of pin Door Door
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  Speaker 2: Team Who's owner, dropped more than three percent.
• 5:56
  Speaker 1: On the other hand, the share price of Etsy jumped
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  Speaker 1: more than.
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  Speaker 2: Five Nothing like a bit of trade protectionism, So what
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  Speaker 2: is the key learning here? Trade protectionism is where a
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  Speaker 2: country looks to protect its domestic industries by restricting imports
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  Speaker 2: from other countries, and.
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  Speaker 1: Ag tariffs is one of the most used strategies of
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  Speaker 1: trade protectionism.
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  Speaker 2: You see by making imported goods more expensive. Tariffs can
• 6:19
  Speaker 2: help level the playing field for local producers, but this.
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  Speaker 1: Can also lead to higher prices for consumers and.
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  Speaker 2: Might even lead to some global drama aka trade retaliation.
• 6:30
  Speaker 1: And China might have a few moves of its own
• 6:32
  Speaker 1: sleeve as well. Fluxda every single month, the Flux Money
• 6:36
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• 6:38
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• 6:40
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• 6:42
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• 6:44
  Speaker 2: Thanks for listening and we'll see you on Wednesday.