Latest / The Curve / TCW38: Costco’s pumping, Nike’s jumping, and Tay-Tay’s raining gold on the NFL.

Transcript

TCW38: Costco’s pumping, Nike’s jumping, and Tay-Tay’s raining gold on the NFL. · The Curve

• 0:00
  Hi and welcome to the Curve Weekly. The podcast that keeps you up to date with all the money,
• 0:06
  business and stock market tea. Everyone should experience for us at least once in their lives
• 0:10
  and Annie shouldn't miss out just because she can't afford it. Help me, I'm poor. Hey, Sophie!
• 0:16
  What is going on? Oh my god, do you not just happen to be on the way here? What? I was on the train,
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  on the tube, whatever. And there was this guy dancing, what is he up hold? You know, and you
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  want to dance in public, but you don't because you're like, oh, I miss you so if you're alright,
• 0:34
  then you just do. But even a lot of the time I don't either. And this guy was just like,
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  like really bugging and I was just like, God, you're cool. And I was just smiling at him.
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  And I've been actively thinking I need to look people in the eye more often because I kind of
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  avert people's eye contact. I don't know why, especially hot guys. I just can't do it. I find it
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  really awkward. Yeah. Anyway, I was that kind of challenging myself to keep smiling at him and
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  look at him. I know that sounds weird, but I was like, because I wasn't really anyway. I think there's
• 1:02
  a thin line between being a crew. Yeah. Do you reckon that would be? Like if someone just
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  keeps staring at me like, oh my god. When I left the train, I was almost about to wave and be like,
• 1:12
  have a good day. I don't, but then anyway, he did come up and said, oh, and he was like, hey,
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  my name's Elvis, like Elvis Presley. Oh my god. How old is this guy? I don't know. Like maybe
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  30 something. Anyway, he was like, do you know for brunch sometime? At every one of his
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  dramas, like there's a few cool brunch spots around here. Like we chatted for a bit. Anyway,
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  I was just like, God, it really, you should smile at people more often and just make eye contacts.
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  Yeah. I was just like, completely that happened. It was a good little test run, but I will try and
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  reign it in so that it's not crossing the line of creepy. I do think, yeah, I feel like I'd be creepy.
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  You know, I've had time to be like, anyway, I just thought that was quite cool. Nice. And I was proud
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  of myself, because I just find looking at people awkward. Yeah. I don't know why. As soon as I think
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  someone's cute, I look away. Yeah. I did that. I was biking. And as this cute guy crossed the road.
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  While biking's dangerous. I saw this cute guy cross the road. I was like, oh my god. And then I
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  like, we were like looking at each other's who's crossing the road. Like the producer. You want to
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  line by? Yeah. And then I was like, trying to be like, and then he like turned around and
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  locked last night. Oh my god. Oh my god. I know. I know. Hi. You should have just pulled a bike
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  into a bus or something. Yeah. I'm gone. But yeah. No, it is. Do you know what I mean? Though,
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  you know, as soon as there's that like fun, flirty eye contact, it's like, it's scary.
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  Yes. No, differently. So, we are. I can do that. Say. Yeah. That's fine. I think it's like a
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  yeah, it's like an anxiety thing. Yeah. Oh my god. I get anxiety.
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  Should I be excited about it, though? Sorry. Because like to me the other day, I'm having these very
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  weird thoughts. It's almost like final destination. Like a keep thinking really bad things are going
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  to happen to me. Like, oh my god. I might fall in front of the tube. Oh my god. I might get
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  scratched up. Yeah. And I was like, oh my god. Welcome to the anxiety bus. She was like,
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  this is anxiety. I think it's also just big city life. You know, like a tube. Oh, a big bus.
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  They are loud and scary. Like when the tubes pull and I'm like, oh my god. That's fast.
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  All right. Enough. You just tripped. Accidentally. I know. And I triple the time. Please stay
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  behind the yellow line. Anyway, stock market. So god, that was a really boring interest. So
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  stock market. Get excited people. September. Yeah. We're nearly into that. Don't do the whole
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  all this years gone so quickly. Delete that from my notes. It goes so quickly. You know,
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  we're getting old. I know. The gears just roll by. I know. September. So remember when we spoke
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  about August performance and we were like, September is historically a pretty terrible month.
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  Yes. Well, but in Chink, it has been a pretty terrible month. Really? Yeah. So the stock market
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  is down about 4.4%. And when I say stock market, I mean the US stock market. And this is
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  yeah, shaping up to be one of the worst months since last year. So this month, the S&P 500,
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  which is the top 500 companies in the US down 4.4%. New Zealand's down 2%. Australia's down
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  over 3%. But good old UK. Oh, what are we doing? Well, I thought we usually don't talk about the UK
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  stock market in here. So like in terms of the performance. So I was like, yep, the footsie.
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  The footsie. Not spout if oh, oh, TSI. But it's the top 200 companies here in the UK, right?
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  Oh, 100. Yeah. The footsie 100. Yeah. And that is up 2.2%. So it's doing.
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  Why do we think that it is? Is there something? Oh, you asked Sophie. Thank you, because I'd like
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  to use my research. So you're not going to be excited about this. But it's mainly because a lot
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  of the commodity companies, so companies that sell oil and gas and all of that are doing really
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  well. So BP and Shell, for example, are big companies in the footsie. I knew you'd say that for
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  some reason. Why the commodity companies doing well? Well, there's expectation that China,
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  the Chinese government is going to spend money to help stimulate the economy because it's
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  not doing too well. So that means that you know, big cash injection and when China grows,
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  it needs to get oil and gas and stuff from other places around the world. So BP and Shell being
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  one of the biggest, they have done well. Also, the other reason is that the pound has weakened
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  against the US dollar. You can effectively buy more pounds for every $1 of US dollar.
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  Why is that good from a footsie performance point of view? Oh, because people are like it's
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  cheaper to buy in the UK at the moment. So then I'll spend in the UK. A bit of that, but the
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  main reason is that these companies like Shell and BP, they get a lot of their revenue and profit
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  from the US. So now when you convert that back to pounds for reporting, your financial reports,
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  your annual reports, it is a larger amount. It's not really, I guess, an actual growth in profit,
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  especially just a currency thing, but that's what moves markets. Yeah. Anyway, so there's been some
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  companies that have reported recently, which I hope you'll be interested in. Firstly, Nike.
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  Oh, yeah. Yeah, you know the shoe company? Yes, I do like Nike products. Do you say Nike or Nike?
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  Oh, it's a mean to be Nike. I don't know. I've always said Nike. I think the US say Nike. Do they?
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  Well, I feel like they're probably right. Anyway, in IKE, I'm interested in and I like their
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  products. I think I just worry. There's been so much chat around the slave labour and child labour
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  and conditions of workers producing the products for like nothing. And they're in quite low quality.
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  I know, but you do remember like our McCain, you've done it again, and they found like a frozen
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  rat on the bottom of their like pizza one time. And then forever in a day, I will pass the freezer
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  aisle. And if it's like our McCain, I'm like, no, no. I almost would think the opposite.
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  I'd be like, well, okay, we've found a rat there. Safety standards now would be fucking high.
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  Sorry. Oh, just like that. Oh, the four of a round of pizza. Like I just, I would need
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  there to be so long of it. I was talking through Barcelona and there was a squished
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  rat on the ground. I was like, no, no, no, no, I can't. Anyway, the point is I think I still have
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  slightly bad taste in my mouth around. Nike. Nike. I don't know. What's your name?
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  The company. It's so important that companies like this or any company has really good visibility
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  on their supply chain or has the best factory conditions or all of that because reputational
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  damage can last four years. Like there were people like you who would be absolutely blanket,
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  I am not over buying Nike again. And it's really hard. You have to kind of wait for a whole new
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  customer to come through or generation of customers to not know about that to then. Yeah, so it can be
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  very grand damage like people with Volkswagen, where they altered there. This was a recently
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  something that happened. So they, when you got to buy a car, you check things like how much,
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  how many kilometres it's done and what they did is they lied about their missions that their cars
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  produced. So people were buying this car, it's going, oh, great. They're really environmentally
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  friendly, not knowing they actually weren't. And so they came up with that. Yeah. So it got found out,
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  they got, they had huge recalls, which means people, you're buying cars off, buying cars off,
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  back off customers. So when you recall, do you have to buy them back? Would you just say drive
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  your cars and we need to swap them? Which essentially costs there. Huge reputational damage,
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  fine, but they found that so many people throughout the company knew about this. So it was a whole
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  systematic cultural issue. Wow, that's nice. So it was hard to remember. How did they not get out
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  earlier is my question. Like if it's not just one dodgy general manager, that's probably how it got
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  out was someone was like, hang on, this isn't actually right. Wow, that's bad. A customer probably
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  tested their car. Like the science experiment, that little girl that did a ribena science experiment
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  and was like, actually, there's a lot more sugar in ribena than you, she was like a living
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  years old or something. Oh my god. And ribena got a huge fight. Well that's right. Because they were
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  like, you get more vitamin C than you, I don't know what it was, you daily dose of vitamin C
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  or something. Yeah, she bullshit as well. Anyway, some people were like, we're never going to buy
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  Volkswagen again. So they can have reputational damage for years and years and years.
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  Anyway, back to Nike. So they reported their financial results. The shares jumped and why was
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  this world mainly around their inventory falling? So inventory is stock. You haven't sold. So shoes
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  on the shelves, t-shirts, and sentries that you haven't sold yet, all of that. And so they had
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  less left out, less inventory. And inventories, high inventories are huge risk for a company because
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  it means it doesn't have that hasn't sold, right? And if it doesn't sell and gets quite large,
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  you're going to have to discount which impacts your profit. Okay. You know, you're going to have to say,
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  okay, instead of $100 itself, 50 because we've seen it rid of this inventory. And so it's never
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  really, it's never a good sign to have high inventory. And because around COVID, they had quite a lot
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  of spare stuff, right? Because we're getting held up from delivery issues. And so there's customers
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  that were wanting it, but it wasn't arriving. And then it arrived. And then the customers are like,
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  you know what, I'm cutting back on my cost because my paycheck wasn't going as far and cost
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  a living crisis and all that. So yeah, so it was a really good sign that they are getting through
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  there. Inventory, which kind of contradicts what we've been seeing with consumers cutting back on
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  discretionary spending in terms of like buying your clothes and all of that. Because there's a lot
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  of brands that have really felt it quite hard, haven't they? Like I think in the last couple of
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  months, the cost of living crisis, the cosy lives has been, has been really hitting people hard.
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  And that was definitely something I think we've mentioned a few times is the idea that what's
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  going to go? It's going to be people shopping for new dresses. It's going to be people shopping for
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  things they don't need. I guess the thing with Nike is that, yes, sneakers are more essential.
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  Yeah, I mean, there's still, I mean, they have some pretty premium sneakers. If you're
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  filling the pinch, you're not going to be buying those. But yeah, the share prices down 20% this
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  year anyway. So yeah, shit, that's not great. And the stock market's up about 20 this year. So
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  they've got down 40% essentially. Yeah. So there is still a difference. Like is that people, people
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  not buying. Yeah. So I think the reason they jumped was because it's a less bad than people
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  thought. I think that makes sense. And then we also had Costco as well. Really good result.
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  We've talked about this, this company in quite a lot of detail before. And it was a really
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  interesting episode. I loved that one. And I think the good thing with this, we find out which one
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  it was. So if people want to go back and listen again. So in episode 37, we do a big, it's called a
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  deep dive into the fifth biggest retailer in the world, Costco. And so yeah, we go into heaps of
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  detail about the business model, etc. But essentially why this company is having such a good time.
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  It's been an amazing performer this year. Over the last five years, it's been a pretty good
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  steady performer. Anyway, the reason it's doing so well is that it's what we call a recession proof
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  stock. So people are feeling the pinch. They're going to discount retailers to get a bargain
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  in Costco. It fits that model. So yeah. So that's kind of why it's doing really, really well.
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  And again, it's seeing exactly the same thing we were just talking about. It's seeing
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  high demand for cheaper groceries, etc. And less high demand for those big ticket
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  items. Anyway, and to finish, I want to talk about Taylor Swift. Oh, yes, I think I know where
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  this is going. Like the investing stuff. So yeah, yeah, yeah. Oh, Taylor Swift. We've given
• 13:16
  Taylor Swift a lot of their time on this podcast ever way. Yeah. And because she's literally moving
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  markets. Yeah, she everything she touches turns to gold. Yeah, literally.
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  Literally. She imagined having that effect. What, because what were the stats? There was the
• 13:32
  like Instagram post that got shared around about some of her, yes, like financially, her dating.
• 13:38
  What's his name? Trevor's Kelsey. And how much that's impacted by sales. What were some of those stats?
• 13:44
  So website traffic for the next game for the chief's next game that Trevor's Kelsey is part of
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  is up nearly 200%. Well, because you think you're going to go see Taylor Swift.
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  And people that have missed out on a era's concert. I just expected to have belted out in the stands.
• 13:59
  They're like, oh my god. Cool. I might see Taylor Swift. It's also so funny. This is trained on
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  TikTok. And it's, yeah, I'm on TikTok. Yeah. This is trained on TikTok. And women are saying to
• 14:10
  their partners and husbands, they say, hey, how cool is it that Taylor Swift just put Trevor's
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  Kelsey on the map? And their faces are like, how do you, he has been like one of the best NFL
• 14:22
  players, whatever anyway, it's so funny. He plays sports. He plays NFL. Yes. Yes.
• 14:28
  Is that rugby, kind of football football, but there's big, like super balls. Yeah. So there's
• 14:35
  been a 400% spike in Travis Kelsey Jersey sales. Kelsey's podcast now ranks number one overall
• 14:43
  in Apple. He's added nearly 400,000 Instagram followers. There's been 63% jump in female
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  viewership of the NFL, which is wild from the ages of like 18 to 49, which is her idea age.
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  Three times increase in chiefs searches, the word chiefs, um, um, Google. And the chiefs have
• 15:06
  now sold more tickets in a single day than they ever have since the sun to see. So I'm just like
• 15:13
  imagine Taylor Swift. Everyone would be high-fiving him being like, thank you for dating Taylor.
• 15:17
  You haven't done it anyway. Would they though? Would you reckon they're too arrogant that
• 15:21
  they're just saying? Yeah. You know, like they probably don't want to admit that Taylor Swift has
• 15:25
  actually is making their money. Yeah. A quite wild though. Just imagine she's so cool. I don't
• 15:32
  care if you don't like her music. That is, yeah. She's quite, it's quite amazing how she can
• 15:38
  and that photo of her watching him. Yeah. Yeah. Anyway. So she is. I love that she keeps making
• 15:45
  her way into the financial news. Yeah. I know. It's crazy. Every, every where she goes, just like,
• 15:50
  has the site. Jajang. Jajang. Power and effect in the air. So go T Swift. And that's all I've got.
• 15:59
  So we've got some exciting news that we're, you know, she can we tell? Yeah. So we're just
• 16:04
  standing all the camera. Yeah. Yeah. We're moving on from Taylor Swift. And basically we've got
• 16:09
  something coming out this week. We've got an episode coming out this week, which is almost
• 16:13
  another tease really isn't it? But we've been working on the property space recently. Yes.
• 16:19
  And we've got some exciting things to come. Yeah. We're literally just going to dangle the
• 16:25
  camera. We're not going to. Okay. Well, you need to turn it on Wednesday. This Wednesday for our
• 16:30
  property episode to get more details, but. And those of you who are curve fans probably know what's
• 16:36
  coming. Yeah. Actually, if you're not a part of the curve weekly, like news letter, sign up via
• 16:43
  the link in the show notes now, because you'll be the first to know this kind of stuff. But, yeah,
• 16:48
  I'm really excited. Everyone we talked to about our people that are helping us put it together.
• 16:53
  Everyone's like, Oh, I wish this existed when I was buying a house. Do you think I'm going to
• 16:58
  do it today? Yes. No Wednesday. Yeah. It's rhymes with
• 17:08
  online morse. Wow. You pretty much gave it away. Oh my god. You really just that is terrible.
• 17:20
  All right. Well, don't even worry about signing up for the email. But listen to the curve podcast
• 17:25
  on Wednesday. We give all the details and yeah, for the. For the. For the. For the.
• 17:30
  The. For the. For the. For the. For the. Oh, bye. Bye. Thank you so much for listening to the curve weekly.
• 17:38
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• 17:43
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  podcast. And we hope you have a good week and see you next Monday. Bye. Bye.
• 18:02
  So yeah, see you next Tuesday. Wow. See you next Tuesday. I mean, Monday.