Latest / The Curve / TCW18: Adidas is making a comeback after ditching Kanye West!

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TCW18: Adidas is making a comeback after ditching Kanye West! · The Curve

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  Hi and welcome to the Curve Weekly. The podcast that keeps you up to date with all the money,
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  business and stock market tea. For the record, feminism by definition is the belief that
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  men and women should have equal rights and opportunities. Everyone should experience
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  for us class at least once in their lives and Annie shouldn't miss out just because she can't afford it.
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  Help me, I'm poor.
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  The key. What's nice to see one of us rest up for this, you've said actually.
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  I did rest up. My shoes are yellow, they match my teeth.
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  I know. So if we're so different.
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  I'm like, what's the least amount of colour I can wear in a day?
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  You're like, give me yellow, give me brown, give me all the colours.
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  Oh yeah. I don't feel better having made an effort though.
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  I know, do you?
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  Friendly. Yeah. You look so sweet.
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  I have to make a lot of blazer and like heels and I feel amazing.
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  I don't have heels on today but I mean that would be quite interesting.
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  You look good though. If you spill, you need to leave away with us.
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  Well you just can't be eating or drinking for the entire day.
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  Perfect. Just what I want. Absolutely not.
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  Where is the jingle? I'm going to play it. It's got to go in as post-production.
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  I've not got to. So we basically, for any context, if you've just
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  Right and before we get into the good stuff, before we get into the
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  I mean arguably, maybe it's the other way around. It's all good stuff.
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  But someone commented on our reel from the last episode and they'd gone in and use chat Gbts at Gb, P, P.
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  I always say B. Okay, so the jingle that AI came up with is listen to the curve weekly.
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  It's informative and fun, really. From Monday markets to Thursdays,
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  We did try to produce this, but it sounded shit. So as much as we appreciate the input,
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  a bit average to kind of hurry us along into the stock market stuff, okay? We could give it
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  another crack. I think it's done, it's dead. Listen to the curve weekly. It's informative and
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  fun, really. Okay, so in the stock market, we have had a pretty good week last week in the US,
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  but in Australia New Zealand, not so good. But there's lots to talk about, so buckle up, so.
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  Okay. I'm ready to go. I'm ready to go. A bit more on the banks, so there's been a lot more
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  around the banks, other banks collapsing, more regional banks, not the big ones, not like credit
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  Swiss, when that collapse, but more smaller ones having real issues. So it seems like, yeah,
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  the issues just aren't going away and getting a lot of investors that are getting really concerned
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  about the banking industry. I think it's time we put more in crypto. That's what I'm taking from
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  this. Yeah, love that, right? Yeah. If there's trust in the banking system, people will need
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  alternatives, which is crypto, maybe a bit of crypto. Yeah, yeah, no, love that. And we've also had
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  reporting seasons still going, so this is when companies report their results for the first quarter,
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  which is the March quarter. We had Apple. Oh, yeah. Yeah. What happened with Apple? You sound
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  really excited. I'm excited. Why did they do well? Yeah, they did well. So really, I'm about 3%
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  last week. So everyone was kind of a bit scared going into the Apple result being like, oh gosh,
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  the world's slowing down. Are people going to be buying less iPhones? How will that impact
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  Apple? So everyone was a bit nervous going into the Apple result. But the outcome was that, yeah,
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  iPhones are doing pretty well. Great. Yeah. So that kind of gives a good indication of economic growth
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  and people still spending money on large ticket items. That's quite expensive for an iPhone.
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  You know, like there's still people buying, buying items like that, which is really good news.
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  Are they also announced a $90 billion buyback? So this is when they buy their shares. Yeah.
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  $90 billion. We should be put, oh my god. Yeah. I know what this means. Yes. Yeah.
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  So this is when, for those of you who don't know, this is when a company buys back its shares. So
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  it effectively acts like an investor in the stock market and we'll just buy its own shares. And
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  it's because it's like, hey, look, we're pretty confident in the outlook. Usually the share price
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  might not be doing so well. So they're like, you know, they want to instill confidence in investors
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  in the future of the business. So they'll say, well, buy our own shares. But Apple's shares are
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  actually doing really well. So they've got the extra cash. They're like, look, we're happy and
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  positive in the outlook of the future of Apple will buy back our own shares. So yeah. And $90 billion.
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  That's a lot. You know, if Apple came out and said, we're going to do a $1 million
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  share buyback, you'd kind of be like, meh, meh, meh, meh. That's nothing. It's not going to
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  move the needle. Yeah. But $90 billion, that's massive. I've told tick off before for axes.
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  Because I've recently learned, so a friend of mine has done a holistic sexuality sort of like a
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  degree, I guess. Yeah. And she was explaining to me using different language, like, not sorry,
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  not different languages, different accents from different cultures, whether it's Italian or
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  Swiss or anything that it's a micro-aggression or accent. I actually had a German school teacher.
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  And when ever she spoke to me, I couldn't help but reply with a German accent. It was like this.
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  And she got really angry. She thought I was taking the past, but I literally was just, oh,
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  thank you. Yeah, I know. But I couldn't help it. And everyone started laughing. And I was like,
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  this like condition, because she'd say certain words in a slightly different way with an accent.
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  And I would respond, can you give me an example? Oh, she just like asked me.
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  Basically, like, you would respond as a seven year old with a German accent. Totally.
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  Yeah. And she, and then I get told off and get sent to detention because it was like I was
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  taking a piss, but I literally could not help it. And it happened time and time again. And gosh, yeah,
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  so, I was so, I was so, I was just so imagine it as well. You genuinely weren't meaning to.
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  There's this weird thing where she like sometimes she's stuff that's like socially awkward or just
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  like not all good, but doesn't realise it. Like, it's the best heart. I was at a party and a friend
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  introduced me to this guy and she's saying, he's really cute. Come up with me and then we'll talk to him.
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  And I walked up and I just like, you don't even want to know what came out of my mouth.
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  What did you say? Did you say so much? I think to your kid. No, it was like, it was worse.
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  And they both looked at me and she looked at me like, I'm trying to help you out here and you just
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  said that. And I just wanted to die and I just walked off and I came back and I was like,
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  I apologise, it was like, sorry, I don't have any game and I'm so sorry. He's like, don't worry.
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  That's just, I didn't really go anywhere from there. I was so mortified, God. Anyway,
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  Apple, yes, great result. And they're also raising their dividend, which is a good time.
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  So share my back and raising your dividend to two probably of the most important signals you
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  can give to investors that things are doing well at a company. The other one would be if Tim Cook
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  the CEO bought a whole lot of shares, you know, because then he's also backing the company, but
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  to those two signs are really, really positive. Isn't that kind of what's happening with the
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  buyback though? Or is that the company that's the company? Yeah. So I mean, but he would have had
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  huge amount of shares anyway, right? So that decisions technically affecting his shareholder.
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  Yeah. And he would have to buy so many shares to move the needle as well. So it's kind of,
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  yeah. So the fact of the company is, it's great. We also had Adidas report their result.
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  And the stock was about eight percent last week. It's up 30, really 35 percent this year.
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  So it's crazy how quickly companies can turn. Because Adidas had a total plonker last year
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  with the whole Kanye West. Yeah. So there's still undecided on what to do with the stock. So it's
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  just sitting there, all the easy sneakers and footwear. So whatever they do though, it's going to
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  impact their profit by 700 million euros. So because they're going to have to get rid of it,
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  they're going to have to, they're going to have to benefit probably or even donating it,
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  it's still out there. But it's because of their moral stance against Kanye West that they've
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  made a 700 million dollar stance saying, we are not going, which is, which is amazing. Yeah.
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  Shit, that's cool. Which is a huge decision as well for a company. Because now it's affecting,
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  you know, profit, it's affecting investors. So then it's not just we take this moral stance,
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  it's actually a financial flaw in fixed. But you said they're up 30 percent.
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  Yes, they're up 30 percent this year. Do you think that's because people are like, yes, we
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  back the fact that you're saying, see later to Kanye West. There's a bit of that, but it's also
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  forward looking. It's like, okay, cool. They're going to have an impact on profit and then they're
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  going to get back to growth. So when that announcement first happened ages ago, that's when the
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  share price fell. But now the share price is forward looking in terms of what's the future of Adidas
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  look like. And yes, there'll be a bigger, better, more moral company going forward. So therefore,
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  that might flow into increased sales. So it might be a stronger company going forward is kind of
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  why the share price is increasing. And their classic summer shoot, have you seen that one that's
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  doing really well? They're like really kind of thin. Kind of looks like those, but not really.
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  The ones with the three stripes. Oh, yes. Oh, my God. Sorry. It takes people to wearing them.
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  Ford's got them. Yeah. I do really like them. Yeah. I try to buy them in London. I want to
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  get the brown ones. They're doing really well. So if I had noticed this and thought these are going
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  to go off, everyone's going to start buying these. I could have thought this is going to potentially
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  impact Adidas's share price positively and then bought more shares. Exactly. Yeah.
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  Yeah. I mean, you'd probably have to do a bit of research around, okay? How much is it a
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  big portion of Adidas's revenue, like the classic summer? But yeah, it's exactly like if you see
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  people wearing something, all of a sudden, a lot of people wearing it, a lot of people interested
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  in it, then most likely, that's going to have a positive impact on revenue. And lastly,
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  we have some news about the oil companies, which will really float so spoke.
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  Are we in Shell, which is actually listed in the London Stock Exchange? The FTSE.
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  The FTSE is the index. Yes. So the FTSE is like the S&P 500. We give you, get at me with like just
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  the tentacles. I'm like, shut up. Just give it to me one time. I should try so hard, but I don't want to lie
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  and say, yeah, you got it. And then I'm teaching you wrong. So it's an index. So you've got the London
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  Stock Exchange, like you've got the New York Stock Exchange. And then you've got the S&P 500,
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  which is the top 500 US companies. And then you've got the FTSE 100, which is the top
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  100. So when I'm investing in the S&P 500, I'm investing in an index, not the actual exchange.
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  And then if I was to invest in the FTSE 100, that's an index of the top 100 companies from
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  the London Stock Exchange. It gets confusing in the US though, because the S&P 500, they can be
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  listed on the NASDAQ or the New York Stock Exchange. So it's kind of a combination of both. And then
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  it gets more confusing because the NASDAQ 100 is also an index of companies. So there's lots of
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  indexes though. But yes, so the shell is listed on the London Stock Exchange. And it had nearly $10
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  billion in profit for the quarter. That's a quarter. That's three months. 10 billion. 10
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  billion dollars in three months is what I made. Like that's bananas. But this is the thing with
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  oil companies and commodity companies. What do you have a commodity if it's oil, if it's coffee,
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  if it's gold, if it yeah, it's very boom and bust. So you have these really, really good times.
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  And what happens is when oil companies produce really large profits, they put it back into
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  doing a lot more exploration and production and extraction to get more oil. And then that leads,
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  wait for it, and then that leads to kind of, I guess, an oversupply of oil, which then brings
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  the price down. Then they shut all those production, exploration facilities. Then that means less oil,
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  then the oil price goes up. So it's very like boom and bust. I feel so emotional. Thank you
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  about the poor earth being extracted for oil. So I know we need it, but it makes me so mad.
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  It's a Monday, I can't cry. But they also announced a $4 billion buyback. So I mean, the apples
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  was $90 billion. Shells was $4 billion, but she was a good sign. And so it's not a good sign for
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  them. They're doing well. Good sign for the company that they think the outlook is going to continue.
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  They're basically saying they think that the oil production is going to continue to be booming.
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  Yes. Yeah. Yeah. So not a good sign for Sophie, but a good sign for Shell investors.
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  And so, so yeah, so we did have Shell BP and like ExxonMobile, she brought all those companies
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  do really, really well last year because the oil price was so high. Everyone was demanding at
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  post-COVID. Everyone was flying again, driving again, you know, consuming petrol, which is
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  effectively oil. And so the oil price went up to, I think it was like over $100. It's now down
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  to in the 70s. In COVID, like when for COVID first hit in the world shut down, it was at $19.19.
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  So it does go and switch around. What does that mean? It's around $70. Yeah. Wow.
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  So it's still very, very high, but it's not at its peak where it was last year. So
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  these companies are still generating huge profits because it's still at that elevated level.
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  Well, we're on the topic of oil, a different type of oil. Olive oil. Oh yeah.
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  Um, has been, there's been a outbreak of a certain bacteria and all these olive trees in
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  Italy. So there's been a huge culling of olive trees, which is meant that oil, oh my god,
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  I mean olive oil, olive oil, which means the olive oil price has gone absolutely crazy. Really?
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  Yeah. So they're joking like, oh, everyone was stocking up on the toilet paper. It's like,
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  now we're going to be stocking up on olive oil. Like it's crazy. Yeah. But different type of oil,
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  obviously a more naturally created oil is olive oil rather than shell oil. What kind of companies,
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  what are some big companies that produce olive oil? Would it be like olive oil is olive oil,
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  is that even a? Yeah. That's fine. Yeah. I'm not sure, but yeah. How interesting it would be
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  just to like invest a tiny little amount in an olive oil company just to see what happens
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  over the next little while. So there's been 21 million trees in Italy that have had to be.
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  So sad. Yeah. Yeah. It's about 15% of olive, olive trees in Italy have had to be cut, cut down,
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  which is pretty, pretty terrible. But again, that's a risk of investing in kind of,
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  what do you call it, agriculture? Because you can always get these outbreaks, or if you invest in
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  like fruit and veggie companies or anything like that, there's always that risk of natural disaster.
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  Natural disaster. Yeah. If you're invest in salmon or anything, there can be even chickens and
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  eggs. There's always a risk of bird flu or something like that that comes around. So it's,
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  that's kind of a risk if you're investing. I wonder if it would take a while to grow that many olive.
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  I don't know how long it takes to grow on olive tree, but yeah. I mean, that's a lot of olive trees
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  in Italy. Yeah. That's it. How weird when we don't talk. I know. I'm like, say something.
• 16:31
  No, it's because I was listening to that. I was listening to the diary of a CEO this morning
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  to that gut episode you sent me. Oh, yes. And there was so many dramatic pauses. And I thought my
• 16:42
  phone had stopped working. Yeah. I was like, I was like, hello. Yeah. Hello. And I thought,
• 16:47
  maybe we should try it out and see how it goes. We talk too much. We talk over each other.
• 16:52
  It's so funny. So I haven't. So we got new phones and I haven't set up my voicemail yet. And I've
• 16:58
  had friends. And you've been like, set up your voicemail. It's so annoying because it just goes like
• 17:02
  beep and then straight to that's fine. And I had this. I think she was, I don't know,
• 17:06
  calling from, I don't know where she was calling from, but she was some lady and she was like, hello.
• 17:11
  Hello. Hello. And I was like, oh, I can't really need to change it. I felt so bad.
• 17:18
  She was only for so long. I was like, surely. The third, hello, you hang up.
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  Like also, who's leaving like voicemails? That's what I see. I don't want to be like, hi,
• 17:28
  you've reached the voicemail because I don't want someone to leave me. Yeah, yeah. Message,
• 17:31
  that takes me. Don't miss it. Maybe you make a voice message this is. Hi. Don't leave a
• 17:36
  message. Yeah, yeah. Text me. Bye. We used to sit in our family one when we were younger.
• 17:43
  And we did this rap. And we're like, hello, you have reached the Harris's and it was so bad. And then
• 17:49
  dad like flipped out. He was like, I have work cause on this phone. We got in so much. We were grounded,
• 17:57
  but at the time it was so far. We had, we had fights over who got to raider. It would be like,
• 18:04
  we had a script like, hello, you've reached the hall, right? And then it would like pass the phone
• 18:09
  to my brother and be like, sorry, it can't come to the phone at the moment. And then Lucy would have
• 18:13
  a turn. She'd be like, but we'll make up a message. Like it was so good. So scripted. Oh god.
• 18:20
  Our phone messages were huge. Yeah. They were great. Oh, it's pretty amazing. Oh, okay.
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  Okay. And the end. Thank you.