Latest / The Curve / Billionaires Are Selling, Tennis Is Pushing Back & Elon Is Suing.

Transcript

Billionaires Are Selling, Tennis Is Pushing Back & Elon Is Suing. · The Curve

0:00
Welcome to the Curve Weekly, where we read the finance news so that you don't have to.
0:05
I'm joined by my co-host, Vic Harris, who is an ex-fund manager and made a career out
0:10
of making money for other people.
0:11
And I'm Sophie Hallwright, ex-producer who used to work in television, radio, and was
0:15
just second-tired of not knowing what's going on when it comes to money, so we started
0:19
this podcast.
0:20
We had a few technicals last week, we won't bore you with the details, but essentially
0:25
this week's Curve Weekly is absolutely packed with all of the finance news that you may have
0:29
missed over the last two weeks.
0:31
Coming up in today's episode, we speak about why all of the US billionaires, I'm talking
0:35
like Zuckerberg, Elon Musk, all the big dogs, why they're cashing out and why are the headlines
0:42
not what they've seen.
0:43
The Australian Open Drama, there is so much going on in this space around how much the
0:48
players are being paid, prize money, as well as trying to get pension and maternity support
0:54
covered for players.
0:55
China has a massive trade surplus, as in 1.2 trillion, we're going to explain what a trade
1:01
surplus is, what it means for the global economy, and who's actually benefiting from this.
1:06
We've got a new segment, now this is something we've never done before, it's with Nat who
1:10
you may recognise from the podcast, she is a tech expert and we talk about all things
1:15
tech AI, but not actually what's hot, what's important, and when there's a huge amount
1:21
of clutter in space and people speaking about tech and AI, having someone that is a true
1:25
professional, give us their insight, this is golden.
1:28
And finally, so-ho house, dear to our hearts, is absolutely struggling.
1:33
It's nearly gone private in a deal but then completely blow up, what's happening with
1:37
the share price, and why does exclusivity not actually necessarily mean profit.
1:42
But, before we dive in, we're talking about our boyfriends, yee hee hee, oh my god, hi.
1:50
I'm opening a margarita for this episode, oh de gosh, I felt like I needed to celebrate.
1:58
Why?
1:59
What?
2:00
No, no, I'm done with anything, I'm sorry, I'm done with anything.
2:02
Oh, don't get me excited.
2:03
Sorry, I'm trying to think, do I have anything to celebrate, what, I feel like you do
2:06
have something.
2:07
No, I just try to offer this podcast, like, it's not that exciting, can you tell me anyway?
2:13
Oh, no, I just said a really incredible event yesterday.
2:19
At Balgully in New Zealand, it's law firm, and there was over a hundred people there.
2:26
They had an overflow room.
2:28
You're kidding.
2:29
They had this one room, and there was an overflow room in case, like, because there was so many
2:33
people registered, it was like their first event that they'd done in this, like, women
2:37
at Balgully Network, and every attendee was asked to bring a plus one, whether it's your
2:43
daughter, or, like, someone younger, I think was kind of the preface, and it was so incredible
2:50
to see, like, such a packed room.
2:52
I got so nervous.
2:53
Did you?
2:54
Did you?
2:55
Just that many people, like, I've done these, I've done events before, and I never really
2:58
get that nervous, but there was a little bit of me when I first started, I was like,
3:01
oh, my goodness.
3:03
There is this many people on a Tuesday lunchtime wanting to learn about investing.
3:09
I was like, made my heart sing a little bit.
3:12
I'm speaking at an event tomorrow for the first time ever without you, and I'm nervous,
3:18
real nervous.
3:19
I'm not sure if I should start by saying, hi, everyone, I'm nervous to be here, because
3:24
I almost feel like it's a bad start.
3:27
You don't want to make people feel like, so don't do that, okay?
3:30
It's just so hard to be, it's like, because I'm so used to, if I forget what to say,
3:34
looking at you, and you fill in my sentence, so we bounce off, we do, like, podcast
3:38
art.
3:39
Then I'll pause, and then use this up, and then it's so easy.
3:43
I'm quite nervous.
3:44
They were like, you've got 10 tickets, you can invite other people, and I was like, this
3:47
no, I'm doing no way, I'm definitely not inviting it on a Tuesday.
3:50
I want to know no one in the crowd, but it's going to be like 200 people there.
3:54
You'll be fine.
3:55
God.
3:56
Just realise you're a normal person, right?
3:58
You know, it's like, oh, whoops, wrong slide.
4:00
Or, oh, my mic's not working, it's like, that is normal stuff that happens.
4:04
Yeah.
4:05
Like, for example, if I forget what I'm saying, I could say, fully forgot what I was about
4:08
to say.
4:09
Exactly.
4:10
Yeah.
4:11
Is that for me?
4:12
Yeah.
4:13
I'll be like, oh, just had a little stumble on my words there tonight.
4:14
You know, I think it's just feeling a bit like, mom, joking.
4:16
No, okay, maybe that last little bit, sorry, but I just, I don't know, I just feel like
4:21
sometimes I just say what I think, if that makes sense.
4:25
Yeah, no, I think that's good advice.
4:27
I'm also going to really try and just get, like, I don't have time to be nervous for
4:32
it.
4:33
Do you know what I mean?
4:34
Yeah, yeah.
4:35
So, I just have gone to just get the effect.
4:36
For anyone who is thinking, oh, I want to hear you guys speak, we are going to be doing
4:39
some New Zealand events, which we haven't actually announced just yet.
4:43
We'll let you know all the details once we find lies.
4:46
If anyone has any really beautiful spaces that fit over 300 people in either Auckland
4:51
or Christchurch, could you please get in touch with us because we're not asking a lot.
4:55
Yeah.
4:56
Also, if anyone wants to cater, bring drinks.
4:58
If anyone wants to speak, you know, if you don't want to sub in, we're right, so.
5:05
What do you mean?
5:06
Well, I have not seen that house before.
5:08
I am in…
5:09
Your grandmas?
5:10
Tommy.
5:11
He rode about my boyfriend's house.
5:12
He's in the other room, and he may listen to this, so don't erode.
5:17
I love this house.
5:18
It's got character.
5:19
It does, but it looks very, like, lived in, you know?
5:21
Not a…
5:22
That's what I love about it.
5:23
Yeah.
5:24
He's like, art on the wall.
5:25
It's home.
5:26
There's, yeah.
5:27
That's how it intends.
5:28
It's like in a new relationship, and you're like, yeah, love you back.
5:35
Oh!
5:36
Yeah, totally.
5:37
Yeah, definitely.
5:38
No, there is…
5:39
There is a lot of love.
5:40
Stay true.
5:41
Stay true.
5:42
Stay true.
5:43
Stay true.
5:44
Stay true.
5:45
Stay true.
5:46
So I've placed up into this fear room.
5:47
You don't mind, dude.
5:48
Stay true.
5:49
Stay true.
5:50
Oh my god, it reminds me of that movie.
5:51
It had those 19 days.
5:52
This is a love phone.
5:54
Don't tell me you've already bought a plot.
5:58
No, no, no.
5:59
I haven't.
6:00
I just…
6:01
That is an iconic film.
6:02
I love that film.
6:03
No, no, I haven't bought a plot.
6:05
I did get a really good Christmas gift, though.
6:08
No.
6:09
I painted a plate.
6:10
You know, you know, there's fun kind of paint and sips.
6:13
And I painted a plate that had chilies all over it.
6:16
And then the middle I wrote, eat me.
6:18
I thought you were going to say, like, you spice up my life or something?
6:22
Oh, no, no.
6:23
That would have been equally cringe.
6:24
But I thought kind of fun, sort of sexy.
6:26
I really hope no one that knows him listens to this podcast.
6:28
Did you spend Christmas together?
6:30
No.
6:31
No, no, no.
6:32
My mum was in a hospital over Christmas.
6:34
Oh, sorry.
6:35
Remember?
6:36
Yes, sorry, sorry.
6:37
No, we didn't.
6:38
But I did go to a member I went to Devon.
6:39
I did.
6:40
Oh, yes.
6:41
I had a really lovely time.
6:42
It was so beautiful.
6:43
So I'm stating a British guy.
6:44
It's so fun.
6:45
So fun.
6:46
Do you just sometimes say, just speak to me.
6:48
I'm honestly obsessed with the accent.
6:50
You're like, just talk, just talk.
6:51
It's so sexy.
6:52
I'd love to slowly over time develop a British accent.
6:56
I just know it's completely socially unacceptable to fake it at 34.
7:00
Oh.
7:01
You can't make anyone say, wow, how long will you learn it for?
7:06
Oh, yes.
7:07
I'm going to catch the bus.
7:08
Yes.
7:09
I'm going to get an Uber flower man if you ever want to, you know.
7:13
He is the most New Zealand sounding guy that you will ever hear.
7:18
Good day, guys.
7:19
Welcome to the park.
7:20
He is not.
7:21
There's no way he's getting towards a British accent.
7:24
Damn it.
7:25
He's got a very deep, lovely voice though.
7:27
He does.
7:28
Yes.
7:29
Do you think it's about time that we start saying his actual name?
7:31
Or are we still happy with the cover of Flower Man?
7:33
It's quite fun.
7:34
It is quite fun.
7:35
Okay, Graeme.
7:36
We'll keep it a normal sexy.
7:38
So fun.
7:39
Yeah, yeah, love it.
7:40
We need to start sending more flowers though.
7:42
It's been a while between bouquets, I will say.
7:44
Actually, let's move on from talking about it.
7:46
Yeah, yeah, yeah.
7:47
We need to work more in seconds.
7:48
There's a lot going on in the finance space for anyone that, you know,
7:52
it follows along closely to our social media.
7:54
You may or may not have seen that we spend our weekend recording a curve weekly.
7:58
And unfortunately had technicals.
8:01
So we basically have a shit load of finance news to talk about today
8:05
because there was a whole lot of stuff that happened last week.
8:08
So we're going to do our best to get through it all.
8:10
There's a lot of good stories.
8:12
Where should we start?
8:14
So we actually got sent a post from a guy with a finance platform.
8:20
And it was like, hey guys, can you explain this?
8:22
And I watched it.
8:24
And I instantly was like, oh, let me edit.
8:27
Let me edit.
8:28
And essentially it was a guy who's got a finance platform.
8:31
And he was like, skirmongering effectively,
8:34
being like, look, there is so many billionaires that are selling stock.
8:39
And it's a big warning signal that the market is going to crash and all of this.
8:45
Should we buy a tiny bit of that clip?
8:47
Yeah.
8:48
Something strange is happening in the markets.
8:50
And billionaires are sending a message with their money.
8:53
Warren Buffett just held 325 billion in cash, his largest position ever.
8:58
Jeff Bezos sold 13 billion in Amazon stock.
9:01
Mark Zuckerberg sold billions in meta at all time highs.
9:05
And it's not random.
9:07
When the smartest money in the room says the market is too expensive,
9:10
they start converting stocks to cash.
9:13
Now this follows a historical pattern.
9:15
In 1929, Joseph Kennedy systematically exited before the crash.
9:19
In 2008, legendary investors like Paul Sin and Murray saw it coming and positioned accordingly.
9:25
The pattern is identical.
9:27
Phase 1.
9:28
Massive insider selling at peaks.
9:30
Phase 2.
9:31
Crash 12 to 18 months later.
9:33
Phase 3.
9:34
Maximum fear becomes maximum opportunity.
9:37
Are you protecting yourself or are you betting that this time is different?
9:41
History says it's not.
9:42
Stay vigilant.
9:43
Be loud.
9:44
It got me thinking with everything that I read,
9:46
I like to read beyond the headlines, right?
9:48
With this, it was like, yeah, billionaires are selling that means the stock market's going to crash.
9:52
And he referenced things like Warren Buffett, who is one of the world's most famous investors.
9:59
He is holding in his investment company the most cash it's he's ever held.
10:04
Then he highlighted the fact that Jeff Bezos has sold stock in Amazon.
10:09
Also Mark Zuckerberg has sold billions of meter stock.
10:14
And so I got digging.
10:16
Of course she did.
10:17
What he's saying is that all of these really, really great investors and billionaires
10:24
are effectively selling or not investing in the stock market right now because they think that
10:29
it's too frothy and we're at the peak essentially.
10:32
So they're selling their stock.
10:34
And yes, that is happening.
10:36
But we need to look at any founder that's selling stock or any famous investor, big time investor, billionaire.
10:43
You need to look at the percentage of their stock that they're selling, right?
10:46
Because they might just be wanting to buy a boat.
10:49
It sounds like when Jeff Bezos is selling 13 billion dollars of Amazon stock,
10:54
that is a headline alone.
10:56
Of course, it's like, whoa, but that is less than 2% of his overall stock that he owns in Amazon.
11:04
So yes, it's a dollar figure.
11:06
It sounds like a lot, but in the scheme of things, it's not.
11:09
And he has been selling year after year after year.
11:12
So this is not new news.
11:14
But taking out a context, it can really freak people out about the stock market.
11:18
And yes, we've had three years of the stock market doing nearly 20% per year,
11:24
which is much higher than the normal, which we say the average is about 10%.
11:29
So there is probably a period of lower returns coming.
11:35
Whether that's this year, whether it's next year, I don't know.
11:38
But the stock market has done so well.
11:41
Of course, these people are going to sell some of their stock.
11:43
I personally don't think it is a reason for everyone else to freak out and sell their investments.
11:49
I could be wrong, but I'm just saying.
11:52
I'd love to know what Jeff Bezos is doing with that amount of money paying for his wedding.
11:59
No, I think I saw his wife in the news recently for donating a huge amount of money.
12:05
And I thought, God, we need more billionaires like her.
12:08
We need first see more female billionaires.
12:10
And then we need more billionaires like her that are just donating money.
12:13
I really didn't like the narrative when they're like, Jeff Bezos ex-wife gets huge payouts.
12:19
Like it's like, no, no, no, the only reason he could get to where he is
12:23
and have a family and all of that is a support network that helps people get there.
12:29
You could not get there without a support network.
12:31
Do you know what?
12:32
I actually, I'm not trying to compare myself to the busiest biggest billionaire in the world.
12:36
But I got picked up and I'm having dinner cooked for me.
12:40
And like, I wouldn't be able to.
12:43
I don't know.
12:44
I think if I look at last year and I shared this in our reflections episode,
12:50
I really, really didn't look after myself.
12:52
And I massively struggled to be a normal person and also work hard.
12:58
And I am determined this year to do it differently and to not put.
13:03
I mean, you just, everyone, you're just a candle and you're eventually going to burn out.
13:07
But I think my point here is when you have friends, family, a partner, a family,
13:14
whatever, like people that are helping you stay healthy, happy,
13:19
whether it's doing your laundry or making social plans,
13:23
or I don't know, those things I think can be so incredibly undervalued.
13:28
And I don't know.
13:30
Maybe this is going to sound weird, but you know, I took it.
13:33
I had a sauna before this podcast record because I really wanted to show up and have good energy.
13:38
And the way that I've shown up now and how I feel and what the energy that I think that I'm bringing to,
13:43
what is my work is so much better because I feel healthy and like I've looked after myself.
13:50
Yeah, it's so unfair and it's so wrong to devalue what she would have brought to that relationship
13:56
and what's so many people who stand beside very, very busy business people.
14:02
I don't know. The whole thing really drives me nuts.
14:05
But interestingly, speaking of those billionaires, there has been some articles
14:12
that have been put out about how much money they've made under Trump's leadership.
14:17
And it is wild. Elon Musk has made, and this is Trump 2.0.
14:23
So not when he was first in power. And even though these guys had a falling out,
14:27
he's made over 200 billion, well, Trump's been in power.
14:31
Jeff Bezos, 15 billion, Mark Zuckerberg, about 2 billion, Sam Altman,
14:36
which is the open AI CEO, the evaluation of the business has gone from about 150 billion to 500 billion.
14:43
Wait, hold on. Sorry. Is this just while he's been in the last year?
14:47
Yeah.
14:48
Because the stock market has done so well.
14:51
So you can see why they are wanting to get in bed with him when this is the outcome, right?
14:59
It's self-motivated.
15:01
And when you invest, I hate to say it, but when you invest in businesses where the founder owns a lot of shares,
15:08
one of these businesses, for example, you benefit as well.
15:11
You might not have billions, but the share prices have done well.
15:16
And yeah, it's just interesting to highlight everyone as a bit self-motivated when it comes to these things.
15:25
Do you feel like when you hear the list of those names and how much they've made and the fact that they're in bed with Trump?
15:32
Do you have any kind of ethical issue or moral standpoint on investing in those companies?
15:38
I can't make a blanket statement for all of them, right?
15:41
Each business is so different.
15:44
Like, yes, Tesla's got its issues, meters got its issues, Google has also got its issues.
15:51
It depends what you mean ethically, right?
15:54
Because Google, absolutely dominating an AI and global carbon emissions in the US have gone up by 2.4% this year.
16:03
After 2 years of decline and that's all due to AI.
16:06
So therefore, do you not invest in Google because of its contribution to AI?
16:10
And therefore, it's impact on the environment.
16:13
Do you not invest in meter because of what it's doing in social media to young people?
16:19
Do you not invest in Tesla because of Elon Musk as the leader and how he treated people and the poor work conditions that they have at Tesla?
16:30
But yet, it's going to be absolutely game-changing in order to reduce carbon emissions because more people driving extra vehicle.
16:36
You just got to, you kind of, it's so personal when you have to figure out where the line is for you personally.
16:43
And invest that way and just as such a tricky one.
16:46
I go through such phases of feeling differently about that.
16:50
Maybe right now, just the mention of Trump and how much money he's making there.
16:54
I don't know, it makes me so angry.
16:56
We had a great guest on the podcast. I don't think the episode's gone out yet.
17:00
But she was almost highlighting like, you have much greater power being a conscious consumer.
17:06
And, you know, not buying products that don't align with your values and your ethics and all of that.
17:12
Then you do being an investor, which was quite an interesting kind of.
17:15
That's so interesting.
17:16
Yeah.
17:17
Why did she say that?
17:18
Well, she was like, yes, you can say I don't want to invest in companies that produce carbon emissions for whatever.
17:24
She's like, but look around you, like pretty much everything in this room was created by fossil fuels.
17:29
So until you can as a consumer, not contradict yourself in that way, your impact as you're investing in that way is going to be so insignificant.
17:38
So you have a much greater power of not buying a store's product or a company's product.
17:44
That's going to impact the company more than not buying their shares.
17:48
And I was like, interesting.
17:49
I don't know as I totally agree with that, but interesting take.
17:53
She was also kind of highlighting, don't contradict yourself, right?
17:56
It's like, consume the way you invest as well.
17:58
No, I think that's valid for driving a petrol car, but I won't invest.
18:02
It's like, you could actually have more impact by not buying petrol than not buying BP or Shell.
18:09
I think it's really interesting because I've been thinking and talking about this a lot lately.
18:13
I feel as though there's been this huge global shift to people caring less or doing less when it comes to the environment.
18:21
I don't know if this is stemming from Trump and his whole drill, baby drill, or if this is, I don't know what it is.
18:27
But if I look at my own habits and my own ethics and morals and where I used to be three years ago compared to where I am now,
18:35
I'm quite ashamed of how, of how little effort I'm making when it comes to being conscious consumer.
18:42
I'm so much less focused on it than I used to be.
18:46
And I just don't know if this is totally personal, if anyone else feels the same, but I brought it up with a few friends lately.
18:53
And I don't know if they're trying to make me feel better, but they said, you know, I think there is a global shift away from that.
18:59
But yeah, I don't know, I'd be interested to know if people listening who feel similar, maybe used to be really on it with a keep cup or not using plastic or not buying metal.
19:11
Or whatever, you know, your angle is that you perhaps really cared about if you're still feeling as on it.
19:19
I don't know, I feel quite ashamed to admit it, but it's definitely something that I have slipped on.
19:24
And I don't know if it's maybe being in London or being in a massive city and feeling like I don't really have the option sometimes to not take an easy convenient option like ordering from Amazon.
19:36
But I definitely don't feel like I'm anywhere near as conscious of a consumer as I used to be. And it's not a good thing.
19:42
I think your right Trump has played a big, big part in that.
19:46
But I also think the cost of living crisis and the fact that a lot of economies aren't, you know, like New Zealand, for example, the economy here is not doing well.
19:54
It is very hard to make that decision to buy organic or pay for the more expensive products that's made out of recycled material or, you know, reusable material versus, you know, if something's a higher price, it's very hard to make that decision when you're not in a financially strong position.
20:14
And I'm not saying that's an excuse. It's just like, we see it time and time again.
20:18
Should we move on to news item number two?
20:21
Yes. So the Australian open the tennis tournament is on at the moment in Australia.
20:27
But there's been a bit of a rockup and there's been a bit of news in the media about players not getting paid what they're worth.
20:36
And it's caused quite I guess an overshadow of the tournament, which has been one of the best ever record numbers record turnout.
20:48
But the backlash that this is men and women players are having against the Australian open, but also all other grand slams as well.
20:57
So Wimbledon, US Open, French Open, all of those other tennis tournaments is that they want a bigger share of the revenue that these tournaments bring in.
21:07
They're like, we are key in these tournaments being a success yet we get about 16% of the revenue that the tournaments bring in.
21:19
And they're like, we want we want it to be closer to I think they're really asking for like 22%.
21:24
What is it comparatively to other parts of the world? Like to other big, you know, for example, I don't know a massive basketball game or a massive rugby game.
21:32
What percentage do players get in different sporting? I was about to say sporting arenas. Have I ever seen a more less sporty in my life?
21:39
In other sporting events, what is the kind of percentage?
21:43
It depends right because this is an individual sport versus like team sports, but it's roughly 50%.
21:49
Is what other sports skis? Oh, wow.
21:52
Yeah, so they're like, excuse me, like there has been you guys make so much money off this tournament.
21:57
We are vital in terms of helping you generate that that money.
22:02
And we want a bigger part of the revenue.
22:05
And Australian Open's argument is that there has been a huge step up in the prize pool.
22:11
This year, the total prize pool is just over a hundred million dollars.
22:17
So that is 16% of the entire Australian Open Revenue.
22:22
Oh, that is a very lucrative event. Holy shit.
22:27
Yeah. But players, tennis players make a very small percentage of their total earnings comes from prize money or actually playing sport.
22:35
It's like endorsements and all of that.
22:37
But what they're also asking for, which I thought was quite cool, is they want these tournaments to contribute to what they're creating,
22:46
which is a global player welfare fund, which includes health care, pensions, maternity benefits.
22:52
They're like, okay, you play the players prize money, but then we also want you to contribute to this fund for global tennis players globally.
23:02
That gives them access to money for their pensions, money for health care, maternity benefits.
23:08
It's so clever. So yeah, I thought that was quite interesting.
23:11
That's really cool. But yeah, it's really overshadowed the tournament.
23:14
And I think it's just a bigger conversation, right?
23:16
We are seeing sports absolutely boom.
23:19
That headline of record numbers at Australian Open, that's not the first headline that I've seen.
23:23
There is a lot of interest in sport at the moment and kind of live events.
23:29
And I think people just crave still like a hangover from COVID, like that human connection and those cultural moments.
23:37
I do love this trend towards people caring more about sport.
23:41
It's so interesting. I used to even flower man who works in sports.
23:46
I always would be a bit confused by how much.
23:50
I don't know, it was definitely more targeted at men.
23:53
I always felt like, oh, you're interested in sports.
23:56
This is so classic. But now that women care about sport and lots of women are starting to watch stuff, I'm really starting to get on board.
24:03
So it's quite amazing how.
24:06
Yeah, I don't know. Why is that?
24:08
Because even if we think about Formula One, it's enormous and it's boomed.
24:12
Female rugby and soccer has become huge football.
24:17
I don't know if I feel like so many sports are starting to and sports people are starting to become...
24:23
Well, sports people have like followings and personalities and personal brands that people get into as well as everything that goes around these events.
24:33
If you think about tennis now, it's all about the partners, what they wear, who is attending.
24:40
There is kind of a bit more of a social element around it rather than...
24:45
Oh my god, you're right. It's like the Netflix shows and it's not actually just about the sport.
24:50
It's about the partners, it's about someone having a affair with somebody.
24:54
It's almost using people, not just their brands or what they represent from a sporting perspective, but them as people.
25:03
And I guess it kind of follows the trend of creator entrepreneurs and the extension of influencers.
25:09
It's not posing for bikini shots. It's people interested in people's lives, like deeply interested.
25:15
Yeah, it's like Cristiano Ronaldo, I can never say his name.
25:19
Cristiano? Cristiano Ronaldo, yeah.
25:22
And how many millions of followers he has on Instagram and then people interested in his wife and his kids.
25:27
You know, you become this... It's like by association.
25:30
Yeah, I agree. I think sport is really great.
25:33
And when I was first dating flamen, I kind of didn't get it.
25:37
And now seeing the camaraderie at sports games and all of that,
25:42
getting little kids are excited to support their team.
25:45
And they go along with their families and make a day of it.
25:49
There's something about it.
25:51
And also teaching them that you're not going to win all the time, but that's okay.
25:54
I love that.
25:56
And also, it's weird that I have that attitude given I was a competitive sports person.
26:04
But I think it's more I don't understand a lot about a lot of games.
26:08
And I think if I understood the rules more, I would get really excited.
26:12
Because the idea of dressing up and going to a big venue and screaming for the team that you want to win is so fun.
26:18
Do you like ice hockey?
26:20
Why ice hockey?
26:22
Have you actually hated rivalry?
26:24
No, what is it? Have you heard of heated rivalry?
26:27
No, no, I genuinely don't know what you're talking about.
26:29
Oh, wow. I feel like the people like screaming when they hear this.
26:33
What do you mean?
26:34
Just go watch it.
26:35
Is it an Netflix show?
26:36
Let's just say a lot of people have got very interested in ice hockey.
26:39
Ice hockey.
26:40
Okay, right on it.
26:41
Oh, by the way, for anyone that doesn't subscribe to our newsletter,
26:45
we've started a fun new segment at the bottom.
26:47
I don't know if you've noticed it, but we do a recommend.
26:50
And it shows books, heaps of different things, podcasts we've listened to,
26:54
et cetera, from the whole team.
26:55
And it's actually so great.
26:56
Things with bought lately, blah, blah, blah.
26:58
Keep it up for that.
26:59
I feel like I should have put on there.
27:01
I'm going to say maybe someone has put it on there.
27:03
And if not, maybe it should go for this week.
27:04
Oh my God, sorry.
27:05
It is like an absolute tornado storm outside.
27:08
And I hope you can't hear this.
27:10
I don't think I can hear it, but I'm so confused with what's going on in New Zealand.
27:13
Because one minute, I saw all these photos of people having the best summer ever.
27:17
And now people are bunking down.
27:19
Did you see my TikTok?
27:20
No, what did you do?
27:21
Go follow my TikTok, because everyone.
27:23
What is it now?
27:24
I love the effect social media takes.
27:27
It's so good.
27:28
They're not, I think they're really funny, but I just feel like I'm a bit cringed.
27:31
No, I love it.
27:32
No, it was just like the kiwi summer.
27:34
I'm like, what is this?
27:35
They leave it lots of storms.
27:36
Yeah.
27:37
You know, however, I was like, you can't beat a kiwi summer.
27:40
You do fit me, Ken.
27:41
Yeah.
27:42
You go to go up.
27:43
You beat a kiwi summer by going to Spain.
27:46
Sorry.
27:47
Where you are going to have 30 degree days every day.
27:50
There is no storm.
27:51
Even in winter.
27:52
Yeah, even in winter.
27:53
Yeah.
27:54
But I'm going to a wedding this weekend.
27:56
And there's five degrees.
27:57
I don't, didn't bring my clothes home for five degrees.
28:00
I've just seen something.
28:01
Yeah, please.
28:02
Oh, God, I'll do it.
28:03
Express.
28:04
I mean, this happened to me last year.
28:05
I was in New Zealand.
28:07
And it was this insane random winter in London that was amazing.
28:12
And I missed it.
28:13
And then I got back.
28:14
And it was the opposite.
28:15
I feel like I chased the snow or the storms.
28:17
Yeah.
28:18
It's kind of like, it serves me right, you know?
28:20
Yeah.
28:21
Yeah, exactly.
28:22
Yeah.
28:23
It's someone saying, actually, this is totally on you,
28:25
because you're trying to chase summers.
28:26
We're actually going to drop you in the rain.
28:28
And we're going to show you you can't.
28:30
Hello, just a quick little interruption to let you know that we have something very exciting
28:35
coming out soon.
28:36
This is a project we've been working on for about a year.
28:39
We are launching a brand new podcast and practical course called IOU.
28:44
And it's launching in mid February, 2026.
28:47
And honestly, I feel like this is exactly what I needed.
28:51
The moment I got my first pay.
28:54
If I had been told these basics, they're so easy.
28:58
If I'd been told them so much earlier in life,
29:00
I would be in a completely different financial situation right now.
29:03
Most of us weren't taught the basics from budgeting to money management,
29:08
to how to even interpret your pay when it comes into your email.
29:12
You know, you get the little thing you've been paid.
29:14
I mean, the basics just were not taught at school.
29:17
So we were like, we owe you these lessons.
29:19
Hence calling it IOU.
29:21
It's one beginner-friendly episode every single month of this year.
29:25
There is no stupid jargon.
29:27
It is totally beginner-friendly.
29:30
So whether you just need a refresher or you're completely new to money conversations,
29:34
this is the series for you.
29:36
And there's also a practical course that goes alongside this podcast
29:39
that actually is going to help make what you're learning about in the podcast,
29:42
click in real life.
29:44
Make sure that you're signed up to our newsletter to be notified as soon as the series comes out
29:48
where you're going to put a link to that in the podcast show notes.
29:51
And we wanted to play a quick little trailer to get you all excited for what's coming.
29:56
Welcome to IOU, some money education, because we owe you,
30:00
and you guys owe me some money education,
30:03
because I didn't really learn it going up.
30:05
We're siphoned back from the curve,
30:07
and we have brought in Lucy Blackison from She You Should Care About
30:09
so that she can ask all the questions that you wish you could.
30:12
Oh my god, and actually, also, if you want to see me learn how to implement everything
30:16
that they've tried to teach me, we have IOU, the practical lessons,
30:20
where there's actually a course where you can do everything we've taught you how to do.
30:24
It's really easy, it's really fun.
30:26
Coming up in this episode, we spoke about our relationship with money,
30:30
which was quite interesting because you're not often having to sit on a mic
30:34
and tell everyone about your family history with money,
30:37
why you may spend the way you do, why you may save the way you do,
30:40
so it was kind of like a therapy session slash finance session.
30:45
Also, towards the end, I didn't realise that this was going to happen,
30:48
but there were some voice notes that my loving family
30:51
had very kindly provided the girls at the curve with,
30:55
and I was very lightly called out on four different occasions.
31:00
So, I think you're really going to love this one,
31:03
and we can't wait to hear about your relationship with money too.
31:07
This is the funnest, coolest thing we've done in a really long time,
31:10
so keep your eyes and ears peeled.
31:12
Okay, and now back to the episode.
31:15
Hey, what's happening in China?
31:17
Because something's happening in China that I would like to know about.
31:20
China, China, China.
31:22
So, China has come out with some news around the fact that it has had a record
31:31
trade surplus of $1.2 trillion.
31:35
Now, let me explain what that means,
31:37
because that is, don't do that face.
31:40
I'm going to explain it in a really simple term.
31:43
It essentially means it has exported far more goods than it has imported.
31:50
So, it has a seat chile.
31:53
If you take a household, for example, like a home, you're home.
31:57
The home you're in right now.
32:00
Oh my god, never going to love that down.
32:03
You sell things or services to other people,
32:08
so it might be like you rent out a room, you have a side hustle,
32:12
you're freelancing, whatever it is,
32:14
that is you selling stuff to other people.
32:17
And then the flip side is that you still have to buy groceries,
32:20
you have to buy clothes, you have to purchase holidays, for example.
32:25
If you net those off, what it is saying is that you earned, say, $120,000 a year,
32:31
but you only spent $80,000, so you end up with a $40,000 trade surplus.
32:37
So it's like profit, basically.
32:40
Yeah, it's like profit, but it's at a country level.
32:44
Yeah, so they've made a $1.2 trillion profit, which means that they have.
32:50
Other countries have bought way more of China's products than it has bought of other country's products.
32:56
What was the number?
32:57
1.2 trillion.
32:58
Wow, that's a lot.
33:00
And why this is such a wild figure is because this year we've had all the Trump stuff,
33:05
all the tariffs stuff going on, and it is saying, despite all of that,
33:10
we've actually sold 1.2 trillion dollars more than we've bought from the world.
33:16
So a big FU to Donald Trump, you know, saying that as exports have stayed so strong,
33:23
despite all of this.
33:24
So come try and clip our wings,
33:26
like we have just come out much, much, much stronger than you probably ever expected.
33:31
But do you think that that would have been a much higher number?
33:34
Had they had the tariffs not gone in place?
33:37
You know, do you think China would be thinking, shit, yeah, that's great?
33:41
Or do you think that China would be thinking that would have been five times the amount
33:44
had you not put those tariffs on?
33:46
Well, this is a record number, right?
33:48
This is a record number it's even had.
33:49
Wow.
33:50
Yeah, so maybe possibly, but it still signals like such strength from one of the biggest economies in the world.
34:00
But there's also, I guess, like a catch 22 to this, right?
34:02
Because it's like, okay, yes, you're extremely competitive in the world right now.
34:07
But that's not very, what's with, like, I guess balance, like a lot of countries,
34:12
whether it's the US or other countries, it'd be like, well, hang on a second.
34:15
It's anti-competitive in the same way that we're worried about other big companies,
34:20
like whether it's Netflix and Paramount merging or whatever.
34:23
It's almost like the amount that we are buying from China is so outweighed to other parts of the world
34:30
that it's almost not right.
34:33
And the scales kind of need to be balanced so that it's not relying so much on one country,
34:38
is that kind of what you think?
34:39
Yes, yeah, yeah.
34:40
And it's like, okay, well, we can slap higher tariffs on you then
34:45
because you're exporting so much, right?
34:48
And it's also, it can't go on forever.
34:52
Do you know what I mean?
34:53
Like this is Chinese factories, yes, they're so efficient, they're so productive
34:57
and yes, they can make things cheaply, but they still rely on the rest of the world
35:01
to sell their products to them.
35:03
So there's the rest of the world still needs to buy them, right?
35:06
And you can kind of flood the market with that, but yeah, there's only so much growth
35:14
you can do as such a large country, if that makes sense.
35:18
I mean, what do you take from the story?
35:20
I kind of, I think particularly when I don't even really know trade surplus,
35:24
like I mean, I get it now that you've explained it, but what are the key takeaways here?
35:29
Yeah, look, I mean, it is good for an economy.
35:31
If you were in what we call trade deficit, so you were constantly buying more products
35:36
from other countries to sustain your economy and fulfill the demand for your country,
35:42
that's not good either.
35:44
So it's kind of like finding that balance, right?
35:48
We're going to do what we do well, but we're also going to buy from countries
35:52
where they do it, they do it best, they do it cheaply, they do it more efficiently.
35:57
That's kind of what people are taking away from this is like, okay, China,
36:00
like we know you're big, we know you're great, like, but that's kind of ridiculous
36:04
that you're making a $1.2 trillion trade surplus.
36:08
But I view this as kind of an investing trend as well, though,
36:13
because despite everything that's gone on in the world over the last 12 months,
36:18
China has come out stronger.
36:20
Like it has, I just think it's such a powerful force.
36:25
And I mean, we've seen companies like the luxury names, for example,
36:30
do really well off the back of this.
36:32
If China is thriving, those countries rely on Chinese demand a lot.
36:37
You know, we've seen LVMH, which is Louis Vuitton, Moe Hennessey.
36:41
The issue price has gone up 24% in the last six months.
36:44
Oh my god, you called that caring, which is Gucci,
36:48
and has other brands.
36:50
The issue price is up 40% in the last six months.
36:53
So yeah, when China does well as an economy,
36:56
there is definitely sectors that do well as well off the back of that
37:01
that rely on Chinese demand.
37:03
So it is a good, healthy sign.
37:05
Let's just not get too big for your boots.
37:07
But hold on, because China was doing well when luxury was doing shit.
37:12
So why is that a direct, it wasn't?
37:15
No, no.
37:17
Yeah.
37:18
I always just thought China has been doing well for ages.
37:21
I mean, it has been doing, but it's more travel, right?
37:24
It's more Chinese people that travel to other countries and buy these products.
37:28
So when the Chinese economy is feeling great and strong,
37:32
that reverberates around into other countries around the world.
37:35
And so that's when luxury does well, the luxury space does well.
37:39
Does that make sense?
37:40
Not really.
37:41
I mean, I thought the China, the whole reason that America is going after China
37:45
is because they have been a strong economy for a while now.
37:51
And in the last couple of years, the luxury space was doing terribly.
37:55
So why all of a sudden, I mean, I know that the Chinese economy,
37:59
what you're saying is it's doing even better and it's record highs.
38:03
But wouldn't you then think if the economy had been strong,
38:07
that luxury would have remained, okay?
38:09
Yeah, it's not a one for one, right?
38:11
It's not like, okay, cool, China does well, luxury does well.
38:13
There's so many other factors that play into it, but it is one of them.
38:17
The other factor is COVID.
38:19
You know, people weren't traveling.
38:20
We had costs of living crisis.
38:21
People weren't feeling.
38:23
And this is this is people in Asia.
38:25
This is people all around the world weren't feeling like they had
38:28
disposed when come to spend on luxury.
38:30
There was also tariffs that was snapped on Europe,
38:34
where these products have been made.
38:36
So there was a lot going on in the luxury space.
38:40
But over the long term, like they're most,
38:43
they're, I guess, their largest captive customer base is Asia.
38:48
So when that does well, these names tend to do well.
38:52
But China, yes, you're right, China.
38:55
When we say do well, it's like in relation to what, right?
38:59
China has always grown at a much faster rate than a lot of other countries.
39:03
And that's because it's not a developing country,
39:07
but it's less mature.
39:09
I guess you would say it's growth rate has been kind of like five, six percent per year.
39:13
And if we look at like New Zealand Australia,
39:15
the US is all being kind of like two, three percent.
39:19
Right. So when we say not doing well,
39:21
it's still doing better than your other developed markets,
39:25
if that makes sense.
39:27
I kind of want to backtrack to what you said before,
39:29
which is what people are taking from this,
39:31
is they look at China and they say,
39:33
okay, your trade surplus of $1.2 trillion is enormous.
39:37
We know you do things well,
39:39
but share a bit of that money around
39:43
buy from other places, help global trade.
39:47
Well, the example being, you know,
39:49
Mexico grows amazing avocado.
39:51
So rather than trying to grow them yourself,
39:53
just buy from Mexico, you know,
39:55
it's the idea that like everyone has their thing they got at.
39:57
But right now, China is kind of taking everything
40:01
and exporting everything and not buying really from any other countries.
40:05
So is that kind of it?
40:07
Yeah, and it could also be other countries going,
40:11
okay, our economies aren't doing well.
40:13
We've got trade deficits, you know,
40:15
which means that we have to buy more
40:17
than we can sell.
40:19
And they just might jump on
40:21
the whole Trump bandwagon of like,
40:23
yes, let's clip China's wings a little bit
40:27
and then pull it into line
40:29
by slapping big tariffs on it.
40:31
A lot of countries aren't big enough
40:33
to move the needle for China,
40:35
even if they did that, you know,
40:37
if New Zealand did that for example,
40:39
like China would be like, whoop to shirt, you know.
40:41
So it's great from a Chinese economy point of view,
40:43
but everything in moderation, right?
40:45
You just don't want to piss off the rest of the world
40:49
and then it have negative flow
40:51
and effects for Chinese growth.
40:53
I don't know, I mean, you know,
40:55
with everything that's happening with Greenland
40:57
and I mean, there's a lot going on in the world right now.
40:59
I would love to see a
41:03
banding together of everyone against America,
41:07
not against China.
41:09
I mean, I don't know enough about what's going on
41:11
in the political space, but I feel like this,
41:15
just like talking about China
41:17
and China being so successful.
41:19
There's America not kind of the problem right now
41:21
and Trump kind of the problem
41:23
and actually if there's a way
41:25
where we can be less reliant on the US economy,
41:28
I don't know.
41:29
I want to do your thoughts on this
41:31
because particularly with the tariffs
41:33
that are being put on Europe right now,
41:36
I mean, can you just like explain what's going on
41:39
because I'm obviously interested in what's going on in China,
41:43
but it feels like there's so much other stuff going on with Trump.
41:47
Yeah, I don't know.
41:49
Yeah, I think the leader is the issue in the US, right?
41:51
Not the US itself.
41:53
And I think that is,
41:55
that's what people are getting
41:57
increasingly frustrated and angry with.
41:59
And yes, the fact that he is wanting to buy Greenland
42:03
and he is becoming, I guess, quite dangerous.
42:07
In some of his arguments and his policies,
42:11
I think is what people are fearing.
42:13
But I think the country itself does not scare me.
42:17
But then I guess the leader is a representation of the country itself.
42:21
It's more just that it feels like
42:23
all the decisions that are being made
42:25
that impact the global economy are to benefit America.
42:29
And at what point are other countries
42:33
going to band together
42:35
and do a bit of a middle finger to America?
42:37
And could that happen?
42:39
I don't even know.
42:41
Yes and no. I think what I fear is
42:43
that this complete divide, right?
42:45
Are you going to be on China side
42:47
or are you going to be on the US side?
42:49
Because whatever side,
42:51
you have to be in one camp
42:53
if it got to that point.
42:55
And there's repercussions for either.
42:57
You don't want to create a world where you have to pick sides.
42:59
The global economy
43:01
prospers when everyone works together.
43:03
But that's not the approach
43:05
that Trump is taking at all.
43:07
And that's kind of what I mean is that
43:09
are you not worried that
43:11
or do you not think that there's a...
43:13
I'm not hugely worried. He's only in there for three years.
43:15
Hopefully.
43:17
What worries me is the dominance of
43:19
everything, whether it's
43:21
I think when things are balanced
43:23
and more equalised,
43:25
if that makes sense,
43:27
then things work better.
43:29
So China being too big,
43:31
US being too big,
43:33
even the tech names, right?
43:35
Even Google being too big,
43:37
Meta being too big, Amazon being too big.
43:39
All of those, even the tech names
43:41
as a whole being too big.
43:43
In any situation,
43:45
whether it's a corporate
43:47
or at a country level,
43:49
when something gets too big
43:51
and has too much influence,
43:53
that's what concerns me.
43:55
And then you've got regulation
43:57
and that body or that regulatory body
43:59
is also controlled by
44:01
the country or company,
44:03
then that's also concerning
44:05
and that's what Trump's doing.
44:07
He's trying to control the people
44:09
that give him his way.
44:11
I almost wonder if it would be
44:13
really cool to do,
44:15
cool the wrong adjective,
44:17
but I would really love to do a deep dive into
44:19
that and what's going on
44:21
and hear more of your thoughts
44:23
on the global
44:25
political-slash economic
44:27
situation because
44:29
yeah, I see so many headlines
44:31
about Trump and about China
44:33
and about America
44:35
and about tariffs and I must say
44:37
it's really hard to keep up.
44:39
But like, I'm not a political expert
44:41
and I don't, like yes,
44:43
I follow the political headlines.
44:45
And yes, there is
44:47
policies that play into companies
44:49
that I invest in.
44:51
But at the end of the day,
44:53
the long-term growth of these businesses
44:55
and yes, companies
44:57
can change policies
44:59
or tariffs can introduce that, like,
45:01
impact around the edges.
45:03
But look at Trump, he's coming out
45:05
with more tariff threats
45:07
and the market hasn't really moved
45:09
versus back in April when the market really
45:11
had a decent force of about 10%.
45:13
Like people just don't believe him anymore.
45:15
So there's like very little
45:17
merit to what he says.
45:19
It's all about headlines.
45:21
You're getting a reaction.
45:23
He loves their attention, doesn't he?
45:25
Yeah, and so yes, I'm obviously
45:27
happy to do a deep dive.
45:29
But they also just don't want people to think
45:31
that this is something they kind of need to,
45:33
of course, I need to worry about it probably
45:35
more from a personal standpoint
45:37
is probably more concerning for me
45:39
of how this impacts
45:41
women's rights and progression
45:43
in the world and all of that.
45:45
I don't want to discount it because it is important
45:47
but it's just more, I think,
45:49
we're only in for short terms
45:51
and whereas when you invest
45:53
you're in there for the long term.
45:55
Yeah. Okay, interesting take.
45:57
I always need to remember
45:59
economic long-term view, long-term view.
46:01
Yes. I keep forgetting.
46:03
I don't want to be an STI.
46:05
I don't want to be an STI.
46:07
Which is not a sexually transmitted infection.
46:09
It is. You don't want to be a short term investor.
46:13
Yeah.
46:15
Speaking of dominance,
46:19
AI, I feel like, I feel like we need
46:21
like an AI section in every
46:23
curve weekly now
46:25
because it's just like going to become
46:27
such a big part of
46:29
not an investing but our lives
46:31
and I actually agree and I think that
46:33
Nat who we had on the podcast
46:35
who is one of our business advisers
46:37
actually, she's such a tech expert
46:39
I reckon we get her on as a regular tech expert.
46:41
Oh my god, great, we'd learn so much.
46:43
I think it's got to happen.
46:45
We all need to get way more
46:47
on top of what's going on and I think
46:49
hearing it from someone that's like working
46:51
in the space and living and breathing
46:53
on top of all of the tech stuff
46:55
could be really good.
46:57
Hello, Sophie here.
46:59
Just interrupting to let you know that
47:01
in between recording this episode
47:03
and having the genius light bulb moment
47:05
from I think Vic about getting that
47:07
on the podcast,
47:09
we've managed to get hold of her,
47:11
and so we've got a new segment for you.
47:13
So this is Nat, our tech expert.
47:15
If you have not listened to the episode
47:17
we did with her a few months ago,
47:19
please listen, we'll link that in the
47:21
podcast show notes because she's amazing
47:23
and you have way more context as to who she is
47:25
and why we get her on as our tech expert.
47:27
But basically this conversation is a zoomed
47:29
out view on what is happening
47:31
in the tech and AI space.
47:33
So Nat has sent us a voice note,
47:35
which we're going to play for you in a second,
47:37
and it is her thoughts on all of the things
47:39
we're going to take to tech and AI in this episode.
47:41
So we're going to play that for you now.
47:43
You mentioned the Australian Open.
47:45
There's actually a really interesting
47:47
technology company that is actually
47:49
running a lot of the operations behind
47:51
that particular day.
47:53
And it's an Australian tech company called
47:55
Safety Culture.
47:57
So if you look at a big event like that
47:59
or in any workplace,
48:01
there is a lot of training that needs to happen
48:03
onboarding of different individuals
48:05
and in this case,
48:07
there are vendors that they need to train,
48:09
I'll keep safe,
48:11
track a lot of the equipment that happens around
48:13
those workplaces and events.
48:15
So actually, there's a huge opportunity
48:17
to look at a lot of manual processes
48:19
that need to happen across a business.
48:23
And in some cases,
48:25
it's taking things like that were checklist
48:27
that were paper based, for example.
48:29
And there are a lot of successful tech companies
48:31
that are actually taking
48:33
seeing those opportunities of old ways of working.
48:35
And then saying, how can we add a digital
48:37
or tech lens to doing that?
48:39
So there actually is incredible
48:41
amount of tech companies
48:43
that actually support big events
48:45
like that in Safety Culture and Australian
48:47
tech company being one of them.
48:49
Zooming out globally,
48:51
you mentioned China.
48:53
One of the things that you don't actually
48:55
see talked about very often is this
48:57
the pure amount of investments
48:59
that countries across the world,
49:01
particularly China, are actually making
49:03
research. So if you look at the
49:05
sheer volume of academic research papers
49:07
across the world, China is
49:09
by far leading in the
49:11
output of their AI research papers
49:13
followed by the US,
49:15
the UK, and then India.
49:19
So a lot of the AI
49:21
that you might use every day,
49:23
that actual innovation
49:25
comes from research.
49:27
So if you want to zoom out
49:29
and look at, say, countries
49:31
that are making big strategic
49:33
technology investments,
49:35
what people don't always look at is
49:37
actually the research that those
49:39
particular companies are investing in.
49:41
So yeah, that's another different
49:43
I guess a tech strategic lens
49:45
to the China conversation.
49:47
Hope that was helpful guys.
49:49
We would love to hear your thoughts
49:51
on the segment. Is this interesting?
49:53
Did you learn something?
49:55
Would you like to hear more from that?
49:57
And maybe a regular
49:59
expert slot where we can just get
50:01
a professional's looking
50:03
and what is actually happening in AI
50:05
and tech. Please leave a comment
50:07
wherever you're listening.
50:09
Comment, DM us, let us know what you
50:11
thought. And as you know, we have the
50:13
curve hotline, a very sexy red foam
50:15
which sits in our studio. If you would
50:17
like to send us a voice note, we will
50:19
also leave a link for that in the podcast show notes.
50:21
We would love to hear from you.
50:23
So Elon Musk is sewing
50:25
Open AI, so they are on
50:27
134 billion dollars
50:31
in damages. So essentially
50:33
like winding back the clock a bit.
50:35
Elon Musk was actually a really early investor
50:37
in Open AI and when they were
50:39
a not-for-profit structure.
50:41
So they set up this not-for-profit structure
50:43
because they wanted Open AI
50:45
to be kind of free for everyone.
50:47
You know, it was kind of part of
50:49
making the world a better place.
50:51
And they thought that it was technology
50:53
that they've run should have access to.
50:55
And a few years ago, they
50:57
went from a not-for-profit
50:59
to a for-profit.
51:01
And they got investment in so they could
51:03
grow and be bigger and better
51:05
and effectively make profits of it.
51:07
So he is saying he
51:09
wants to have 134
51:13
billion dollars in damages
51:15
because he said that was,
51:17
you know, he was defrauded
51:19
because Open AI
51:21
abandoned its roots to be not-for-profit
51:23
and partnered with this massive
51:25
software giant. So he says that
51:27
that it wasn't communicated appropriately to shareholders.
51:29
This is not what we signed up for.
51:31
Therefore, it was illegal.
51:33
And yeah, so...
51:35
Sorry. Elon Musk is sewing
51:37
Open AI and Microsoft.
51:39
Like, combined, yeah.
51:41
Because they were a
51:43
non-for-profit and now
51:45
and then they changed not-being.
51:47
And he's saying he didn't have the
51:49
adequate communication and feels like
51:51
he's been taking for a ride
51:53
and he wants 134 billion dollars.
51:55
Yeah.
51:57
What? All companies have
51:59
duties to their shareholders
52:01
and it just blows my mind that he
52:03
thinks, I mean, do you think there's a case here?
52:05
I don't know.
52:07
It's so hard to know, but you just really
52:09
would struggle to, like, think that-
52:11
So Elon Musk also setup his own
52:13
AI company in 2023
52:15
and so Open AI
52:17
is saying the co-founder
52:19
Sam Altman is saying that
52:21
he is just doing this
52:23
to slow us down as a
52:25
competitor so that he can win
52:27
the race in terms of the AI.
52:29
Oh, my God.
52:31
I'm just like, this is so
52:33
P.T. But I guess it's not when it's
52:35
$134 billion on the table.
52:37
It's probably not that P.T.
52:39
But yeah, it would be like,
52:41
you and me sitting up the curve
52:43
being like, look, we're going to do this
52:45
is not for profit.
52:47
This massive software company
52:49
Google involved
52:51
and we're actually going to be a
52:53
for profit company now and I'm like, well, hang on a second.
52:55
No, no, no, no, no, that was not part of the plan.
52:57
So then I leave to go set up my own curve
52:59
and then I'm like, actually, I'm
53:01
going to Efon Sophie Hall, right?
53:03
Because she didn't go through
53:05
what she said she was going to do.
53:07
And also, I view her as a bit of a
53:09
competitor so I want to slow her down
53:11
and distract her so that's kind of
53:13
what's playing out.
53:15
Oh, because these two used to be
53:17
in business together.
53:19
Imagine if they still
53:21
want to have each other and talk
53:23
and I almost feel like what we see
53:25
on the surface is probably
53:27
all the facade and behind closed doors
53:29
or having dinner parties together and laughing
53:31
about the $134 billion that one sued.
53:33
The other, do you know what I mean?
53:35
It just feels like this stupid joke
53:37
that we're all following as if it's
53:39
this thing happening and actually
53:41
do you know what I mean?
53:43
And if it wasn't, and if this is
53:45
actually, he's actually
53:47
sewing him, how weird would it be?
53:49
It's like you sewing me, someone that you have
53:51
like a quite decent relationship with
53:53
and then just all of the sudden being a total
53:55
dick public place.
53:57
So I feel like $134 billion, like
53:59
they probably just be like, oh gosh,
54:01
Elon, not again, you know,
54:03
whereas obviously if I got sued
54:05
for $134 billion, I'd be like,
54:07
it'd be world-ending and I'd be like, oh my gosh,
54:09
oh my gosh, you know, they probably just say
54:11
we've dealt with these lawsuits
54:13
time and time again or something.
54:15
You know, it probably just comes like
54:17
normal course of business.
54:19
But how weird.
54:21
This does seem like a very strange
54:23
relationship.
54:25
And yeah, OpenAI is supposed to IPO this year.
54:27
What's on the cards?
54:29
Oh, I feel like that was my production.
54:31
Just saying.
54:33
It was.
54:35
2026.
54:37
The investing group over here.
54:39
$111.
54:41
They IPOed $14.
54:43
And then they've actually had
54:45
a terrible, terrible time.
54:47
So then there was this big hotel company
54:49
in the US that was like, look,
54:51
we are going to take you private meaning we're
54:53
going to buy all the shares on the stock market.
54:55
That's so how she holds his own.
54:57
And we're going to buy them
54:59
and we are going to buy them
55:01
with debt.
55:03
And we are going to own
55:05
it.
55:07
So now,
55:09
so her house is still a public company.
55:11
It's share price has been
55:13
absolutely dismal.
55:15
It's now trading like below $4.
55:17
And now that that deal to take a private
55:19
has gone, people are like, okay, well what
55:21
did they see that they didn't like?
55:23
And why did they not go through with the deal?
55:25
Oh, God.
55:27
Is there a gap?
55:29
It's just tumbling.
55:31
Yeah.
55:33
But it's not looking good for
55:35
so her house.
55:37
And the thing with this company is that
55:39
there's this ongoing
55:41
weird dichotomy,
55:43
weird tension between kind of having
55:45
rapid global expansion
55:47
and global growth in different countries
55:49
and opening more houses
55:51
while maintaining this really
55:53
exclusive kind of
55:55
members club with high service,
55:57
high quality.
55:59
All of that.
56:01
It's just being a public company.
56:03
So personally, I think it needs to go
56:05
private.
56:07
But one big takeaway from this is just
56:09
if you don't buy in at IPO
56:11
or when a country
56:13
when a country first goes public,
56:15
company do not stress.
56:17
When a company first goes public.
56:19
When you want to buy Spain.
56:21
Don't worry.
56:23
Just don't stress.
56:25
There could be plenty.
56:27
A lot of IPOs have
56:29
where their share price is for
56:31
and there could be a better buying
56:33
opportunity.
56:35
It's so confusing to me
56:37
that it's the most
56:39
exclusive membership that is so
56:41
expensive.
56:43
They have these beautiful venues
56:45
that are fitted out
56:47
with the most insane.
56:49
It's so opposite to what it sounds like.
56:51
If you have a share price
56:53
that's fallen from $14 to
56:55
below 4 and then it tumbles again.
56:57
It's going private.
56:59
How does that do anything differently?
57:01
Because you don't have to disclose
57:03
your financials.
57:05
You don't have to keep
57:07
creating value year after year after year
57:09
for shareholders.
57:11
You kind of have a closed book
57:13
essentially where you can,
57:15
you might have one bad year
57:17
but your share price doesn't get impacted.
57:19
And then you might have
57:21
four really great years.
57:23
Or you can just have a bit more flexibility
57:25
to give yourself a bit more breathing space
57:27
to do what you want.
57:29
And carry out your initiatives
57:31
which might take a few years.
57:33
You don't have to report
57:35
quarterly results or yearly results
57:37
to the stock market.
57:39
You can kind of be like,
57:41
it gives you space to make long-term decisions
57:43
rather than shift with all the years.
57:45
Do something else.
57:47
That makes sense.
57:49
But yeah, that was us.
57:51
We don't have time to answer this question.
57:53
We've got a really interesting question
57:55
that's come through which we, I'm so sorry,
57:57
have run out of time to answer.
57:59
But it's all about like,
58:01
when to sell and it's such a great question.
58:03
If you have any other
58:05
burning, investing,
58:07
stock market, economy,
58:09
any questions that you want answered,
58:11
send us a DM,
58:13
put a voice note on our curve hotline
58:15
or send us an email.
58:17
We're going to answer a bunch of them
58:19
in the next curve weekly.
58:21
Week.
58:23
See you.
58:51
We'll catch you for the next episode
58:53
of the Curve Weekly on Monday.
58:55
Okay, quickly,
59:03
the curve was created to empower
59:05
and educate you about investing,
59:07
but we are not financial advisors.
59:09
Our platform exists for educational purposes only
59:11
and it doesn't provide personalized investing advice
59:13
for your individual needs
59:15
and should not be relied upon to make
59:17
an investment or financial decision.
59:19
We're here for any knowledge and support you need,
59:21
but the final call is always yours.
59:23
And thanks for being here.
59:25
You got this. Yeah, we know you got this.