Latest / What the Flux / Coles and Woolies face world-first laws | NRL overtakes AFL's broadcast deal | Apple jacks up prices

Transcript

Coles and Woolies face world-first laws | NRL overtakes AFL's broadcast deal | Apple jacks up prices · What the Flux

• 0:05
  Speaker 1: This is what them flucks.
• 0:06
  Speaker 2: I'm bread and Justin's Monday, the twenty ninth of June.
• 0:09
  Speaker 1: Does what It's fair to say. The cold weather in
• 0:11
  Speaker 1: Australia is causing Ozzie's to search for warmer destinations. DEFAT
• 0:15
  Speaker 1: down graded it's do not travel warning for the Middle
• 0:17
  Speaker 1: East and Aussies collectively lost their minds. Flights through Dubai
• 0:20
  Speaker 1: and Abu Dubbi jump thirty six percent in a week. Wow,
• 0:23
  Speaker 1: because most of our cheap your roots stop through as
• 0:25
  Speaker 1: a UAE plus.
• 0:26
  Speaker 2: We are on the final day of our seven day
• 0:28
  Speaker 2: series From Savior to Investor, a brand new YouTube series
• 0:31
  Speaker 2: built specifically for people who know they should be investing,
• 0:34
  Speaker 2: but I'm quite sure how to take the first step.
• 0:35
  Speaker 2: If you've missed the first six days of the series,
• 0:37
  Speaker 2: and make sure to check out the Flux YouTube channel
• 0:39
  Speaker 2: where you can see I'll play this called From Savior
• 0:41
  Speaker 2: to Investor in seven days. Just five minutes a day
• 0:43
  Speaker 2: to become an investor.
• 0:44
  Speaker 1: Three massive stories today, Juzzy boy, let's do it for
• 0:47
  Speaker 1: our first. Coals and Woolies are in the firing line
• 0:50
  Speaker 1: after Australia has announced world first supermarket price gouging laws Colson.
• 0:55
  Speaker 2: Willlies literally can't stay out of the news for one week.
• 0:57
  Speaker 2: Be man, I tell you so what is going on here?
• 0:59
  Speaker 1: Soles and Willies of Australia's two bigger supermarket chains, and
• 1:02
  Speaker 1: together control more than two thirds of the grocery market,
• 1:05
  Speaker 1: and over.
• 1:05
  Speaker 2: The past few years these two have collected headlines like
• 1:08
  Speaker 2: their flybys points.
• 1:09
  Speaker 1: From price gouging to underpaying staff, to warehouse staff striking
• 1:13
  Speaker 1: and former CEOs awkwardly walking out of interviews.
• 1:16
  Speaker 2: And from July one this year, Australia will become the
• 1:18
  Speaker 2: first country in the world to introduce specific new laws
• 1:21
  Speaker 2: relating to supermarkets. Go on, Well, the new rules stop
• 1:24
  Speaker 2: supermarkets from charging prices that are quote significantly excessive compared
• 1:29
  Speaker 2: with the cost of supply plus a reasonable margin.
• 1:31
  Speaker 1: And does this affect ye local Iza Not quite. The
• 1:34
  Speaker 1: law doesn't specifically mention that it targets coalson Willies, but
• 1:37
  Speaker 1: it only covers supermarkets with more than thirty billion dollars
• 1:39
  Speaker 1: in AGR revenue, which Coals and Willies both do, so
• 1:42
  Speaker 1: they're very obviously the target here.
• 1:44
  Speaker 2: Yeah, it also means that Audi, Amazon, Chemist, Warehouse They're
• 1:46
  Speaker 2: off the hook for now.
• 1:47
  Speaker 1: But JUGI way some analysts are already saying enforcement will
• 1:50
  Speaker 1: be difficult, so the real impact on both companies will
• 1:53
  Speaker 1: likely be pretty small.
• 1:54
  Speaker 2: So what is the key learning here?
• 1:56
  Speaker 1: Excessive pricing sounds simple, but legally it's one of the
• 1:59
  Speaker 1: most tested concepts in competition law man.
• 2:02
  Speaker 2: The new rules say that prices can't be significantly excessive
• 2:05
  Speaker 2: compared to the cost of supply plus a reasonable margin.
• 2:08
  Speaker 1: But does a boid. The catch is there's no fixed threshold.
• 2:10
  Speaker 2: What's a fair margin ten percent, sixty percent on milk,
• 2:14
  Speaker 2: but fifty percent on chocolate? No rules, my mego.
• 2:16
  Speaker 1: So to determine whether it's excessive, the A Triple C
• 2:18
  Speaker 1: will need to consider shelf life, competitive pricing, seasonal trends,
• 2:22
  Speaker 1: supply chain issues, the whole lot.
• 2:24
  Speaker 2: Now try doing that on twenty to twenty five thousand
• 2:26
  Speaker 2: items in a cold supermarket. Every single time there's a complaint.
• 2:29
  Speaker 1: Yep, That's exactly why excessive pricing cases around the world
• 2:32
  Speaker 1: are pretty rare, and according to the A Triple C,
• 2:35
  Speaker 1: the regulator's focus in year one is purely on monitoring,
• 2:38
  Speaker 1: not enforcement, so b man at all.
• 2:39
  Speaker 2: Australia has the world's first supermarket specific laws. The regulators
• 2:43
  Speaker 2: basically said we're watching and not acting, at least for
• 2:46
  Speaker 2: just the first twelve months.
• 2:47
  Speaker 1: For our second story, the NRL is set to announce
• 2:50
  Speaker 1: the biggest broadcast rights still in Australian sports history, which
• 2:54
  Speaker 1: makes a rugby league more valuable from a broadcasting perspective
• 2:57
  Speaker 1: than the AFL for the very first time.
• 2:59
  Speaker 2: AFLH, you are nursing this, so he goes right now,
• 3:01
  Speaker 2: be man, so tell me more so.
• 3:03
  Speaker 1: The NRL is the peak rugby league competition in Australia
• 3:06
  Speaker 1: and New Zealand.
• 3:07
  Speaker 2: And NRL's previous deal was a four hundred million dollar
• 3:10
  Speaker 2: deal across five years, which was ending in twenty twenty seven.
• 3:13
  Speaker 1: But over the last six months, the rumor mill has
• 3:15
  Speaker 1: been heating up about which networks would get the new deal.
• 3:18
  Speaker 2: Was it nine? Was a Foxtal? Was it seven? Ten,
• 3:20
  Speaker 2: Amazon Prime or a mixture of all that.
• 3:22
  Speaker 1: But then nine in Foxtel. The current broadcast holders had
• 3:26
  Speaker 1: a bit of a falling out about the right.
• 3:28
  Speaker 2: But now they've clearly mended their differences because the NRL
• 3:31
  Speaker 2: is set to announce the largest broadcast deal in Australian
• 3:33
  Speaker 2: sports history from Nine and Foxtel.
• 3:36
  Speaker 1: What are we talking here?
• 3:37
  Speaker 2: We're talking a five billion dollar deal that will run
• 3:39
  Speaker 2: until the end of twenty thirty four, or roughly seven
• 3:41
  Speaker 2: hundred million dollars per year.
• 3:43
  Speaker 1: Wow. That breaks down to roughly five hundred and twenty
• 3:45
  Speaker 1: mil a year from Foxtel in about one hundred and
• 3:48
  Speaker 1: fifty per year from nine and thirty mil per year
• 3:50
  Speaker 1: from a New Zealand broadcaster two and does boy. This
• 3:53
  Speaker 1: is a big deal because it officially makes the NRL
• 3:55
  Speaker 1: more valuable than the AFL's four point five bill seven
• 3:58
  Speaker 1: year deal.
• 3:58
  Speaker 2: And man, clearly, this deal means a lot to the broadcasters,
• 4:01
  Speaker 2: but arguably even more for the NRL. So what is
• 4:04
  Speaker 2: the key learning here?
• 4:05
  Speaker 1: Broadcast rights are not just a TV deal. They're often
• 4:07
  Speaker 1: the financial engine that determines how fast a sport can grow.
• 4:10
  Speaker 2: For the NRL, broadcast revenue is their primary source of.
• 4:13
  Speaker 1: Income, and this revenue flows down from the league to
• 4:16
  Speaker 1: the clubs and from the clubs to the players and.
• 4:18
  Speaker 2: Be man, if the right steal is weak, everything shrinks.
• 4:21
  Speaker 1: Player salaries, grassroots programs, the women's game, expansion plans.
• 4:25
  Speaker 2: And so while this is a win for the NRL,
• 4:27
  Speaker 2: the challenge for Foxdale and its parent Zone is that
• 4:30
  Speaker 2: broadcast rights are a big, big, bet yeap.
• 4:32
  Speaker 1: The costs are exploding for broadcasting and subscriber growth is
• 4:36
  Speaker 1: definitely not guaranteed.
• 4:37
  Speaker 2: And ben Man, might I remind you that Foxdale's owner
• 4:39
  Speaker 2: Dezone had an operating loss of more than eight hundred
• 4:41
  Speaker 2: million US dollars in twenty twenty four at one point
• 4:43
  Speaker 2: three billion US dollars the year before. So bn Man,
• 4:46
  Speaker 2: Foxtel is betting and praying that live sport is the
• 4:48
  Speaker 2: last thing that people in Australia will cancel.
• 4:51
  Speaker 1: For our third and final story, Apple has hiked the
• 4:54
  Speaker 1: price of its max iPads and other Apple products because
• 4:57
  Speaker 1: AI is eating the world's memory supply.
• 5:00
  Speaker 2: Great, so chutch ept is stealing all the memory chips
• 5:02
  Speaker 2: and now we need to pay two hundred bucks more
• 5:03
  Speaker 2: for a MacBook Air don't we want? All?
• 5:05
  Speaker 1: Right? So Apple is one of the world's most valuable
• 5:07
  Speaker 1: companies with a three trillion US dollar market valuation.
• 5:10
  Speaker 2: Only Pine, Nvidia, and Alphabet or Google as the largest
• 5:13
  Speaker 2: companies in the world. And be Man, we know there's
• 5:15
  Speaker 2: been a major push by big tech companies to develop
• 5:18
  Speaker 2: their AI capabilities.
• 5:19
  Speaker 1: And all those AI data centers need squillions of memory chips.
• 5:22
  Speaker 1: And with these hot little tech pieces in high demand.
• 5:24
  Speaker 1: The price of memory has skyrocketed too. Apple claims it
• 5:27
  Speaker 1: has been trying to keep the price of its products
• 5:29
  Speaker 1: steady for as long as possible, but now a price
• 5:31
  Speaker 1: increase is unavoidable.
• 5:33
  Speaker 2: And that means that means that almost.
• 5:35
  Speaker 1: All of Apple's products, from the MacBook Air to the
• 5:37
  Speaker 1: pro to the iPad air will all jump in price
• 5:40
  Speaker 1: almost twenty percent each.
• 5:41
  Speaker 2: Ouch but the Man the iPhone is currently safe, but
• 5:44
  Speaker 2: Apple CEO Tim Cook hinted that could change later in
• 5:47
  Speaker 2: the year.
• 5:47
  Speaker 1: Yeah, and following this news, Apple share price reduced five percent.
• 5:50
  Speaker 2: So what is the key learning here?
• 5:51
  Speaker 1: One industry's boom can become another industry's headache see be Man.
• 5:55
  Speaker 2: Memory chips used in Apple's products aren't exclusive to your MacBook.
• 5:59
  Speaker 1: Nope, They're the same opponents inside AA servers or smartphones,
• 6:02
  Speaker 1: or cars or cameras or even some fridges.
• 6:05
  Speaker 2: So when AI data centers start scaling like crazy, they
• 6:08
  Speaker 2: end up hoovering most of the global supply leave some
• 6:11
  Speaker 2: for everyone else. And we've seen a similar dynamic playout
• 6:13
  Speaker 2: when there was a global semiconductor shortage around twenty twenty
• 6:17
  Speaker 2: one twenty twenty two. The result was that Ford and
• 6:19
  Speaker 2: General Motors had to pause entire assembly lines because they
• 6:22
  Speaker 2: couldn't get enough chips to finish their own vehicle, and
• 6:24
  Speaker 2: that was estimated to coss the car industry around two
• 6:26
  Speaker 2: hundred and ten billion US dollars in lost revenue in
• 6:29
  Speaker 2: twenty twenty one, a low.
• 6:30
  Speaker 1: The raw material was the same, the end products couldn't
• 6:32
  Speaker 1: have been more different.
• 6:33
  Speaker 2: Plus, Sam, you may have listened to podcasts, read articles,
• 6:35
  Speaker 2: google things like what is an ETF, but still haven't started.
• 6:38
  Speaker 2: In our new series from Saber to Investor in seven days,
• 6:41
  Speaker 2: we'll break down step by step how to become an
• 6:43
  Speaker 2: investor in just seven days five minutes a day. So
• 6:45
  Speaker 2: if you want to become an investor, all it takes
• 6:47
  Speaker 2: is watching our YouTube series to get the confidence.
• 6:49
  Speaker 1: Thanks for listening and we'll see you on Wednesday,