Latest / What the Flux / Lovisa's cloudy update | HarperCollins makes a deal with the AI-devil | Amcor's new package arrives

Transcript

Lovisa's cloudy update | HarperCollins makes a deal with the AI-devil | Amcor's new package arrives · What the Flux

• 0:05
  Speaker 1: This is OpenAL Flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Monday, the twenty
• 0:09
  Speaker 2: fifth of November.
• 0:10
  Speaker 1: Does it, boy? Get this one? Superannuation consultant chant West.
• 0:13
  Speaker 1: They're estimating the medium Investment Growth funds is up about
• 0:16
  Speaker 1: ten point three percent in the calendar year today and
• 0:19
  Speaker 1: does a boy on a one hundred thousand dollars super fund?
• 0:21
  Speaker 1: This could mean more than ten thousand bucks in just
• 0:24
  Speaker 1: this calendar year.
• 0:25
  Speaker 2: Not bad, not bad at all. A man, I take
• 0:27
  Speaker 2: something that's even bigger than now. Every Black Friday, Ozsies
• 0:30
  Speaker 2: dropped a massive six point four billion dollars on supposed deals,
• 0:33
  Speaker 2: but they often end up.
• 0:34
  Speaker 3: Stashed in the back cupboard.
• 0:36
  Speaker 2: So this year, Flux is running an anti Black Friday campaign.
• 0:39
  Speaker 2: Until Black Friday, we are offering fifty percent off an
• 0:42
  Speaker 2: annual Flux Pro subscription. So instead of buying stuff that
• 0:45
  Speaker 2: lasts as long as a TikTok trend, invest in yourself
• 0:47
  Speaker 2: for long term with Flux Pro. To make sure to
• 0:49
  Speaker 2: download the Flux out and get fifty percent off right
• 0:51
  Speaker 2: about now.
• 0:52
  Speaker 1: Three bargain basement stories today, Juzzy boy, let's do it
• 0:56
  Speaker 1: for our first Levisa the Fast Fashioned jewelry chain has
• 0:59
  Speaker 1: seen its revenue growth slow down to less than half
• 1:02
  Speaker 1: of investor expectations.
• 1:04
  Speaker 2: Levisa the bling that's here for a good time, not
• 1:07
  Speaker 2: a long time, So tell me all well.
• 1:09
  Speaker 1: Juzyboit. Lavisa started back in twenty ten as a fast
• 1:12
  Speaker 1: fashioned jewelry.
• 1:13
  Speaker 3: Chain like h and M or like Zara.
• 1:14
  Speaker 2: For retail, Levisa focuses on releasing hundreds of new styles
• 1:18
  Speaker 2: of jewelry every single week, and over the past fourteen years,
• 1:21
  Speaker 2: it's grown quickly to operate nine hundred and twenty seven
• 1:24
  Speaker 2: stores in almost fifty countries now. Josey boit Lavisa has
• 1:27
  Speaker 2: been a pretty major retailing success so far, it's share
• 1:30
  Speaker 2: price jumping more than eleven hundred percent since its IPO.
• 1:33
  Speaker 2: But be man at Levisa has just released some results
• 1:35
  Speaker 2: for the first twenty weeks of the financial year.
• 1:38
  Speaker 1: Yep La, Visa's total sales increased ten percent over the
• 1:40
  Speaker 1: first twenty weeks of the financial year.
• 1:42
  Speaker 3: Sounds pretty good.
• 1:43
  Speaker 1: Hold it right there, Juzy boy, before you get too excited,
• 1:46
  Speaker 1: because when you look at same store sales over the
• 1:48
  Speaker 1: same period, they were up only one percent.
• 1:51
  Speaker 2: Seems like the shine might be wearing off of Lavisa's
• 1:53
  Speaker 2: fake three carrot divers.
• 1:55
  Speaker 1: Yep jugiboit the growth that the market had hoped for, and.
• 1:57
  Speaker 2: Be Man Levisa reckons the cost of living increases means
• 2:00
  Speaker 2: there's less discretionary income to spend on things like jewelry.
• 2:03
  Speaker 2: The last about four seconds interesting, So what's the key
• 2:06
  Speaker 2: learning here? Same store sales is the revenue generated by
• 2:09
  Speaker 2: a company's existing retail outlets over a certain period of time,
• 2:13
  Speaker 2: and it excludes any income from news stores open during
• 2:16
  Speaker 2: that period. Now, b Man, this metric is pretty crucial
• 2:19
  Speaker 2: for investors, especially in a company like le Visa that's
• 2:22
  Speaker 2: expanding rapidly in its store out In fact, the Visa
• 2:25
  Speaker 2: opened twenty seven stores during the first twenty weeks of
• 2:28
  Speaker 2: the financial year, including if you don't mind, in the
• 2:30
  Speaker 2: Ivory Coast, the Republic of Congo and Panama and be Man.
• 2:34
  Speaker 3: They actually plan to roll out forty eight stores by
• 2:36
  Speaker 3: the end of the year.
• 2:37
  Speaker 1: So the same store sales number will show a more
• 2:39
  Speaker 1: accurate level of the true organic growth and true consumer demand,
• 2:43
  Speaker 1: and that means investors can see whether growth is driven
• 2:46
  Speaker 1: by a growing market share.
• 2:47
  Speaker 2: Or just because of the expanding number of stores. For
• 2:50
  Speaker 2: our second story, HarperCollins has become the first major book
• 2:54
  Speaker 2: publisher to allow an AI model to train off its books.
• 2:57
  Speaker 1: Talk about handing over your livecard, jazy boy, HarperCollins writing
• 3:02
  Speaker 1: its own eulogy. That's what I'm thinking to tell me more.
• 3:04
  Speaker 2: Okay, So HarperCollins is the British American publishing company. It's
• 3:07
  Speaker 2: been writ in some form since eighteen seventeen.
• 3:10
  Speaker 1: It's the brains and the pages behind classics like The
• 3:12
  Speaker 1: Lord of the Rings and The Alchemist and be Man.
• 3:14
  Speaker 2: It's grown to become the second largest consumer book publisher
• 3:17
  Speaker 2: in the whole wide world. Now, jose it wait so
• 3:20
  Speaker 2: far HarperCollins, alongside the other big publishers like Penguin, Random
• 3:23
  Speaker 2: House and Simon and Schuster, they have been like Gandalf
• 3:26
  Speaker 2: yelling you shall not pass to AI companies. Yep, we
• 3:30
  Speaker 2: ain't selling our books to you because you could learn
• 3:32
  Speaker 2: and train from them and.
• 3:33
  Speaker 1: The next best selling author could become chatty.
• 3:36
  Speaker 2: G But now b Man, HarperCollins has become the first
• 3:39
  Speaker 2: member of the Big five publishers to invite AI into
• 3:42
  Speaker 2: their library.
• 3:43
  Speaker 3: Yep.
• 3:44
  Speaker 1: HarperCollins has reportedly signed a deal with Microsoft to help
• 3:47
  Speaker 1: train its AI.
• 3:48
  Speaker 2: Basically, they'll give Microsoft access and permission to its non
• 3:51
  Speaker 2: fiction catalog for Microsoft to Trader.
• 3:53
  Speaker 1: And this would be split between the publisher and the
• 3:56
  Speaker 1: author as shared revenue and royalty streams. So what is
• 3:59
  Speaker 1: the key learning here when in doubt hedger bets and
• 4:02
  Speaker 1: your intellectual property.
• 4:03
  Speaker 3: Man.
• 4:03
  Speaker 2: We know that many AI companies have been training their
• 4:06
  Speaker 2: models on copyrighted material without asking permission or paying for it.
• 4:10
  Speaker 2: This has landed them in hot water with everyone from
• 4:12
  Speaker 2: publishers to comedians.
• 4:14
  Speaker 3: Think New York Times sewing Open ai.
• 4:16
  Speaker 1: Or comedian Sarah Silverman suing Open Ai and Meta.
• 4:19
  Speaker 2: So now b man AI companies are trying to avoid
• 4:22
  Speaker 2: legal fallout by coming to arrangements with publishers and comedians
• 4:26
  Speaker 2: and authors.
• 4:26
  Speaker 1: And for publishers it's a game of survival.
• 4:28
  Speaker 2: Yeah, they're hedging their bets just in case the judge's
• 4:31
  Speaker 2: decision goes against.
• 4:32
  Speaker 1: Them and jaboy. That's why we've recently seen deals between
• 4:35
  Speaker 1: Uscorp and Open Ai for two hundred and fifty million
• 4:38
  Speaker 1: US dollars over five years.
• 4:39
  Speaker 3: And we can expect plenty more to come.
• 4:41
  Speaker 1: For our third and final story, Amcre, the Aussie packaging giant,
• 4:45
  Speaker 1: has announced a mega acquisition of Berry Group, which will
• 4:48
  Speaker 1: create the largest consumer packaging business in the universe, the.
• 4:50
  Speaker 3: Old packaging bans be Man.
• 4:52
  Speaker 2: Not exactly Front page glam, but definitely the big bucks.
• 4:55
  Speaker 1: So let's unpack this one, nice juzzy boy. Am course
• 4:58
  Speaker 1: started as a humble little paper mill in Melbourne in
• 5:00
  Speaker 1: the eighteen sixties.
• 5:01
  Speaker 2: Yeah, but Amcore's grown to over forty one thousand employees
• 5:04
  Speaker 2: in forty countries and juzyboy. It first listed on the ASX,
• 5:07
  Speaker 2: but shifted its primary listening to the New York Stock
• 5:10
  Speaker 2: Exchange in twenty nineteen. That was after it acquired a
• 5:12
  Speaker 2: packaging business called Bems, which already listed there. But now
• 5:15
  Speaker 2: amcor has acquired another packaging business called Berry Group, and
• 5:18
  Speaker 2: that means they'll have more than seventy five thousand employees
• 5:21
  Speaker 2: across the world.
• 5:22
  Speaker 1: Now will make Amcre the undisputed heavyweight champ of consumer packaging.
• 5:25
  Speaker 3: Okay, be Man, talk me through the numbers. How much
• 5:27
  Speaker 3: should they pay?
• 5:28
  Speaker 1: Well, the acquisition technically values Berry Group at eight point
• 5:31
  Speaker 1: four billion US dollars if you don't mind, but.
• 5:33
  Speaker 3: I feel like there's a butt coming But juzy.
• 5:35
  Speaker 1: Boy, there won't be any cash changing hands because it's
• 5:37
  Speaker 1: an all script deal.
• 5:38
  Speaker 3: Your personal favorite. So what is The key learning here.
• 5:40
  Speaker 1: An all script deal is when shareholders of the acquired
• 5:43
  Speaker 1: company receive stock in the acquiring company instead of cash.
• 5:47
  Speaker 3: Yeah.
• 5:47
  Speaker 2: As part of this mega deal, am Core shareholders will
• 5:49
  Speaker 2: now own sixty three percent of the combined business.
• 5:52
  Speaker 1: And Berry shareholders will own thirty seven percent of the
• 5:54
  Speaker 1: Amcore Bury business and be man. The idea of an
• 5:57
  Speaker 1: all script approach is that it aligns the interest of
• 5:59
  Speaker 1: both company shareholders yep, because the success of the new
• 6:02
  Speaker 1: combined entity directly impacts both of their investments. There Man
• 6:06
  Speaker 1: I must say Amcor has a bit of a habit
• 6:08
  Speaker 1: of using all script deals as a way to acquire
• 6:10
  Speaker 1: large companies without fronting huge amounts of cash yep. In
• 6:14
  Speaker 1: twenty nineteen, they acquired Bemus Group for six point eight
• 6:17
  Speaker 1: billion using a similar.
• 6:18
  Speaker 2: Structure and now be maned with the Bearer Group merger.
• 6:20
  Speaker 2: Am Core is once again using this strategy to try
• 6:23
  Speaker 2: and dominate the US markets flux AMM there is only
• 6:25
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• 6:40
  Speaker 1: Thanks for listening and we'll see you on Wednesday.