Latest / What the Flux / SPC's mega-Aussie food merger | Google's new AI acquisition | Origin abandons hydrogen

Transcript

SPC's mega-Aussie food merger | Google's new AI acquisition | Origin abandons hydrogen · What the Flux

• 0:05
  Speaker 1: This is what the Flux I'm brand aren't justin And
• 0:08
  Speaker 1: it's Friday, the fourth of.
• 0:09
  Speaker 2: October, douzyboy. The annual rate of retail spending jumped more
• 0:12
  Speaker 2: than three percent in August, a result that really nobody expected.
• 0:16
  Speaker 2: But there is a reason behind this result, my friend.
• 0:18
  Speaker 2: It was the warmest August nationally since nineteen ten, if
• 0:22
  Speaker 2: you don't mind. And as a result, summer merch was
• 0:24
  Speaker 2: on the shelves and then quickly off the shelves as well.
• 0:27
  Speaker 1: Actually, update statman a flexim did you know that September
• 0:30
  Speaker 1: was the best performing September in over a decade on
• 0:33
  Speaker 1: the share market in Australia. And if you still have
• 0:35
  Speaker 1: no idea how to get into the share market, what
• 0:37
  Speaker 1: to do? We have the Flex Academy this month dedicated
• 0:40
  Speaker 1: to investing in the share market, how to buy and sell,
• 0:42
  Speaker 1: what your investing strategy should be, and also how to
• 0:44
  Speaker 1: manage your portfolio. It's at thanks to our partnership with
• 0:47
  Speaker 1: Rays and if you want to check it out this month,
• 0:48
  Speaker 1: there are big prizes on offer. Make sure to download
• 0:50
  Speaker 1: the Flux app and check out the academy.
• 0:52
  Speaker 2: Three very educational stories today, Dozy boy, let's do it
• 0:56
  Speaker 2: for our first. SPC, the Aussie canned fruit and veg producer,
• 1:00
  Speaker 2: has finalized a three way merger with Original Juice Company
• 1:04
  Speaker 2: and Nature One Dairy.
• 1:06
  Speaker 1: Geez, not often you hear about a three way corporate
• 1:08
  Speaker 1: marriage here, b man, no very polygamous of them.
• 1:11
  Speaker 2: So tell me more well. SBC Global was founded in
• 1:15
  Speaker 2: nineteen seventeen and specializes in food manufacturing.
• 1:18
  Speaker 1: You know those iconic little dist fruit salents that every
• 1:20
  Speaker 1: primary school kid has in the larch.
• 1:22
  Speaker 2: Box, YEP and Jazi boy. These little fruit packs helped
• 1:25
  Speaker 2: SPC generate two hundred and seventy one million dollars in
• 1:28
  Speaker 2: revenue for the twenty twenty four financial year.
• 1:30
  Speaker 1: In comparison, Original Juice Company had about forty nine mel
• 1:33
  Speaker 1: in revenue and the powdered milk maker Nature One Dairy.
• 1:36
  Speaker 2: Posted around forty six meal Now, Jose Boy, the three
• 1:38
  Speaker 2: companies are merging into one bigger beast. Now.
• 1:41
  Speaker 1: According to SBC, this merged company is all about maximizing
• 1:45
  Speaker 1: the unique strength to.
• 1:46
  Speaker 2: Achieve spc's globble vision Yep. Now SBC is going to
• 1:50
  Speaker 2: provide Original Juice with some extra manufacturing capacities.
• 1:53
  Speaker 1: It's going to be a bigger distribution network so they
• 1:55
  Speaker 1: can expand.
• 1:56
  Speaker 2: And old Nature one Dairy They're going to give their
• 1:58
  Speaker 2: new partner companies access to exporting so they can export
• 2:02
  Speaker 2: to Asian customers.
• 2:03
  Speaker 1: Ultimately, b Man, this means SBC is one giant step
• 2:06
  Speaker 1: closer to achieving their global company they've really been striving for.
• 2:10
  Speaker 2: They want to build the nestlay of Australia, if you
• 2:12
  Speaker 2: don't mind, Jusie boy very bold. So what is the
• 2:14
  Speaker 2: key learning here? When it comes to going global in
• 2:16
  Speaker 2: an aggressive way, It's important to pick the right product mix.
• 2:20
  Speaker 1: You see, b Man, SBC has rush delicious ambitions of
• 2:22
  Speaker 1: entering into Asia Pacific, then up to the Middle East
• 2:25
  Speaker 1: and then to Europe.
• 2:26
  Speaker 2: And this deal has quote unquote synergies written all over it.
• 2:29
  Speaker 1: Yeah, approximately ninety five percent of Nature one Dairies products
• 2:32
  Speaker 1: assault in pharmacies in Asian markets across thirteen countries.
• 2:35
  Speaker 2: And so SBC and therefore original juice company they want
• 2:39
  Speaker 2: to take advantage of this and be Man.
• 2:40
  Speaker 1: This expansion overseas could potentially offset some of the challenges
• 2:44
  Speaker 1: that SPC has faced in Australia. This three way merger
• 2:46
  Speaker 1: is now expected to generate four hundred million bucks in
• 2:49
  Speaker 1: revenue and more than twenty nine mili in.
• 2:51
  Speaker 2: Earnings and suddenly SPC is the best chance we've got
• 2:54
  Speaker 2: in Australia to achieve our very own Nesley. So true
• 2:57
  Speaker 2: for our second story, Character one of the leaders in AI,
• 3:01
  Speaker 2: is ditching its plans to make AI models after its
• 3:04
  Speaker 2: founders were poached by Google more than two point seven
• 3:07
  Speaker 2: billion US dollars. Yep, Character ai has really been thrown
• 3:10
  Speaker 2: under the bus. So I want to know what's going on,
• 3:12
  Speaker 2: Josey boy okay. So.
• 3:13
  Speaker 1: Character ai is an AI chatbot that was started up
• 3:15
  Speaker 1: by an ex Google developer back in twenty twenty one.
• 3:18
  Speaker 2: The service that simulates conversations with characters that you can
• 3:21
  Speaker 2: design and also celebrities. And I'm talking text and voice, so.
• 3:24
  Speaker 1: B man, if you really wanted an your big fan,
• 3:26
  Speaker 1: you could ask Gandal for some life advice.
• 3:29
  Speaker 2: That's huge for me, or jose boit you could ask Voldemort,
• 3:31
  Speaker 2: your hero, why he was so obsessed with taking down
• 3:34
  Speaker 2: a teenage boy. Straight, very good.
• 3:35
  Speaker 1: Question, now, mean man. Originally, Character ai was building its
• 3:38
  Speaker 1: own large language model for its product, but now it's
• 3:41
  Speaker 1: decided to abandon building AI models and instead is going
• 3:44
  Speaker 1: to focus on improving its chat bok and this is
• 3:46
  Speaker 1: after Google made a deal with character Ai for one
• 3:49
  Speaker 1: time license to its tech and its founders came away
• 3:51
  Speaker 1: with a two point seven billion US dollar deal.
• 3:54
  Speaker 2: And Jesse, wait, why did they take this deal with
• 3:55
  Speaker 2: so much hype around the product? Good question.
• 3:57
  Speaker 1: They said that building models is insanely expensive for a startup.
• 4:01
  Speaker 2: Meanwhile, tech giants like Microsoft, Google, they are splashing their
• 4:05
  Speaker 2: hundreds of billions of dollars to get ahead in this
• 4:07
  Speaker 2: AI race. So what is the key learning here? Innovation
• 4:10
  Speaker 2: pays off for those who can afford it.
• 4:12
  Speaker 1: You see me, man, tech giants like Google, Microsoft, Apple,
• 4:15
  Speaker 1: they're sitting on a lot of cash.
• 4:17
  Speaker 2: We'd be talking around four hundred billion dollars in cash collectively,
• 4:21
  Speaker 2: which makes it.
• 4:22
  Speaker 1: A lot easier for them to stay ahead of the curb.
• 4:24
  Speaker 1: With innovation, they can continue pumping money into R and
• 4:26
  Speaker 1: D without thinking twice.
• 4:28
  Speaker 2: On the other hand, startups like character Ai have restrictive budgets, which.
• 4:31
  Speaker 1: Means they tend to run out of cash or get
• 4:33
  Speaker 1: acquired by one of the bigger players. And the man,
• 4:35
  Speaker 1: it kind of reminds me of what happened with Pebble,
• 4:37
  Speaker 1: that smart watch company back in the day.
• 4:39
  Speaker 2: Oh right, I remember Jasi Void Pebble was one of
• 4:41
  Speaker 2: the first players in this smart watch space.
• 4:44
  Speaker 1: But by twenty sixteen, it's sold a fit bit for
• 4:46
  Speaker 1: just forty million US dollars because it struggled to keep
• 4:48
  Speaker 1: up with smart watches that were made by Google and Apple.
• 4:51
  Speaker 2: Seems like the cycle of tech giants leading innovation will
• 4:54
  Speaker 2: just continue.
• 4:55
  Speaker 1: For our third and final story, Origin Energy has seen
• 4:58
  Speaker 1: its share price drop after REVI It's going to abandon
• 5:01
  Speaker 1: its plans to develop hydrogen energy.
• 5:03
  Speaker 2: Hydrogen energy running out of a bit of steam. Sadly here,
• 5:07
  Speaker 2: jussy boy go on.
• 5:08
  Speaker 1: Origin Energy is the electricity and gas provider over four
• 5:11
  Speaker 1: and a half million Australian customers.
• 5:13
  Speaker 2: Yep, the same very providers that send you a five
• 5:15
  Speaker 2: hundred dollar bill when you freezed through the entire winter.
• 5:19
  Speaker 2: So true you see, juzy boy. Back in twenty twenty two,
• 5:22
  Speaker 2: Origin announced plans for a potential hydrogen project in the
• 5:25
  Speaker 2: Hunter Valley of New South Wales and.
• 5:26
  Speaker 1: If successful, they would start to produce hydrogen, a renewable energy.
• 5:30
  Speaker 1: By twenty twenty six.
• 5:31
  Speaker 2: It's sadly Origin warned that it will be abandoning its
• 5:34
  Speaker 2: hydrogen ventures.
• 5:35
  Speaker 1: And what was the reason for this? One?
• 5:36
  Speaker 2: B man, Well, it's pretty simple. Juzzy Boy, too expensive
• 5:39
  Speaker 2: and costly to continue pursuing this one.
• 5:41
  Speaker 1: And I must say this is a pretty big blow
• 5:43
  Speaker 1: for the federal government as well.
• 5:45
  Speaker 2: Yep. They were hoping that Origin would become one of
• 5:47
  Speaker 2: the pioneers in this transition to renewable power here in Australia.
• 5:51
  Speaker 1: Yep.
• 5:51
  Speaker 2: And despite all the government subsidies and the incentives for
• 5:54
  Speaker 2: hydrogen producers, it's still couldn't convince Origin to build the facility.
• 5:58
  Speaker 2: Interesting not strong on the old convincing side of things.
• 6:01
  Speaker 2: So what is the key learning here?
• 6:02
  Speaker 1: Unlocking innovative technology is one thing, but making it commercially
• 6:06
  Speaker 1: viable is another.
• 6:07
  Speaker 2: Yep. Now, hydrogen was considered to be the solution to
• 6:10
  Speaker 2: decarbonization and a transition to renewable energy, but Joey Boy
• 6:14
  Speaker 2: sadly turning into a pretty big commercial bust.
• 6:16
  Speaker 1: And that's because it's costing a pretty penny to get
• 6:19
  Speaker 1: cardridg and scalable and joy boy.
• 6:21
  Speaker 2: Origin isn't the only energy company to pull the pin yep.
• 6:24
  Speaker 1: Ford Eskew had a green hydrogen initiative, but it accumulated
• 6:27
  Speaker 1: over two billion dollars in losses with nothing to show
• 6:30
  Speaker 1: for it.
• 6:30
  Speaker 2: So they pulled the pin as well and.
• 6:32
  Speaker 1: Be man while cutting out technology. The battles climate change
• 6:35
  Speaker 1: sounds exciting, shareholders are sadly only willing to wait so
• 6:38
  Speaker 1: long to see the results.
• 6:40
  Speaker 2: Buckspam.
• 6:40
  Speaker 1: We always talk about different companies who share prices are
• 6:42
  Speaker 1: gone up, gone down on the pod. But if you
• 6:44
  Speaker 1: want to learn more about how you can invest in
• 6:46
  Speaker 1: these companies, it all starts in the Flux Academy. This
• 6:49
  Speaker 1: month we talk about how to buy and sell shares,
• 6:51
  Speaker 1: what analysis you need to do, and also how to
• 6:52
  Speaker 1: manage your portfolio.
• 6:53
  Speaker 2: Thanks for listening and we'll see you on Monday