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Pepsi, Poppi & The Tequila Tariff Saga. · The Curve

0:00
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1:02
Today in the Curve Weekly, we have a very special guest who is someone from the Curve community who applied to be VIX Replacement.
1:11
So VIX is currently in Japan on holiday. And you know what? We're very happy for her.
1:17
The only problem with that is talking on a podcast by yourself is incredibly boring.
1:22
And also, I'm not really the research girl. That's all VIX.
1:26
So this last week we've been trying to find a replacement for VIX.
1:29
And I did a bunch of interviews. I spoke to heaps of different people.
1:32
And I found this amazing woman who's based in Auckland. Her name is Rachel Somerville. She's 33.
1:38
She's just had a baby, the baby's four months old. And she's just super passionate about financial literacy and understanding the markets.
1:46
She actually works at Kiwi Bank as a marketer, but she was awesome. And she did heaps of research for this episode.
1:52
So at the start, I'm going to introduce you to her so that you can get to know a little bit about who she is and her background.
1:59
And then we actually talk a little bit about pregnancy and trying to sort of navigate that within the workforce.
2:06
So I just want to let you know there is a trigger warning here for miscarriages.
2:11
If that's something you don't feel comfortable listening to, we're going to put a little note in the podcast show notes
2:16
so that you know where you can skip to to get to the bit when we start talking about the financial news
2:21
and what's been going on in the market because there has been a lot.
2:25
I just wanted to say thank you for everyone who did actually apply to be a co-host with me on the podcast.
2:31
There was so many amazing people that applied and it just made me think,
2:36
do we need to start millions of podcasts?
2:39
Like people that are super talented sound brilliant on a podcast like they sent voice notes and it was a whole thing.
2:46
So thank you to everyone that got in touch.
2:49
And thank you so much to Rachel for being on this podcast.
2:53
Here is the Curve Weekly. If you want to skip to when we start talking about the financial news
2:58
and what's been going on, then we'll put that time code in the podcast show notes.
3:02
Enjoy.
3:06
Rachel, thank you so much for being here.
3:09
I mean this is kind of I think the first time we've ever properly on and actually I was away once last year
3:15
and we got someone to fill in for me but I think I'm easier to fill in for them Vic.
3:20
You know because like the research piece of the Curve Weekly is,
3:23
it's not easy to be on top of what's going on in the news.
3:27
I can't pretend that I will be anywhere as expert as Vic. She is completely irreplaceable.
3:33
She is irreplaceable as she is.
3:35
And I'm not even a financial expert but I guess I'd say business more so based on my experience.
3:42
I guess I'm at least so financial specifically but I think what is really cool about
3:47
you know having followed the curve for a number of years,
3:50
done your course is that the way that knowledge has been democratised and access to it
3:55
is that now yeah I can come on and speak to the markets
4:00
because I kind of know what I'm talking about from all the learning that I've been doing over the last few years
4:05
and that's like in part to the work the year I've been doing.
4:07
That's just awesome and so true.
4:09
And actually if I wasn't so lazy I could have done the research.
4:12
You totally could.
4:14
But I was just like oh gosh I can't.
4:17
I know how much time it is to sift through all of the news outlets into it.
4:22
And to digest it and then present it and tell you know an audience or a group of people
4:28
in a succinct way it's definitely an art but before we get into the research
4:33
and we get into what's been going on I'd love to just introduce who you are
4:37
and give a bit of context as to when you just mentioned you know you're in a different life stage at the moment.
4:42
Yeah I am currently on Printer Leave.
4:44
I've got a four month old baby girl which has been the hardest and the best time of my life to date.
4:51
It's been an incredible experience I think.
4:54
Very humbling experience.
4:56
I think having a child I was really fortunate to obviously be in this position.
5:01
You know there's so many people that aren't able to be in it.
5:03
It wasn't a smooth road for me like it is for so many women.
5:06
Do you mean getting pregnant?
5:08
So yeah I had it so I had miscarriage for my first pregnancy.
5:11
So you know like so many other women super devastating but you know really kind of brings to the forefront
5:17
that you really want something.
5:19
Well that's the thing right and actually someone in the weekend was saying to me that they went through a miscarriage
5:23
and it made them realise they actually didn't want to be a mum.
5:25
And it's like you don't know really what you want until you realise it's not an option.
5:31
And I think particularly with mother herdits we spend our whole teen age and early 20s and 30s trying not to get pregnant.
5:38
And then all of a sudden the idea of oh shit maybe I can't.
5:42
Yeah.
5:43
That would be really devastating and it's such a hard thing to try and wrap your head around and fertility issues are so common now.
5:50
So common.
5:51
And how has it been transitioning from because you know we haven't given any context before what life is like before you had.
5:59
Yeah.
6:00
Your daughter but you've got an incredibly successful career and I mean you manage a team of like 20 people like Kiwi Bank
6:06
you've had you know up until this point you've had a lot of career success.
6:10
Yeah.
6:11
How has the transition been for your brain going from that to caring for a tiny human?
6:19
So so wild honestly I think when I first went on praying to leave it was like oh my gosh this is amazing.
6:25
Like I wake up you know I go for a walk this is before my daughter was born.
6:30
And then yes she was really late so I had like all this extra time that I did not want.
6:34
And people say like oh this is like great extra me time and it's like when you want that to pregnant and they uncomfortable and you're using your
6:41
parental leave and they haven't arrived not ideal.
6:44
And then at the beginning you're like so tired so overwhelmed but I have definitely struggled with the lack of mental stimulation.
6:50
And I think what was amazing about like this opportunity that popped up was like the last couple of days.
6:56
I've been like oh old Rachel's back you know.
6:59
And I think the other thing is I spent 13 years today like hustling to build my career.
7:04
And it's a really weird thing to be like okay I'll see you guys in like nine months to a year.
7:10
And step away when you've put in so much work.
7:12
It does be still a little bit like insecurity and self-doubt of like oh my gosh what if you know
7:17
I go back and things are really different or they don't longer need me or you know whatever it may be.
7:21
Or I can't keep up because I've missed out on a year of conversation.
7:24
Exactly like.
7:25
Yeah and one of the things that I spoke about in the we did like a tiny little quick episode last week.
7:30
Yes.
7:31
Well one in particular woman emailed her and saying that she basically was coming back from London.
7:35
Yeah.
7:36
She'd done her big OE, she'd really built her career up overseas and then she was coming back with her partner.
7:41
She found out she was pregnant.
7:43
And we've had so many messages from people.
7:45
I bet.
7:46
Because and it's so one of those things unless you've been pregnant or thinking about getting pregnant.
7:52
You've never had to think about what the implications of telling your work would be.
7:56
Yeah.
7:57
Did you have any, I mean have you got any experience or thoughts on that especially as a manager?
8:01
Yeah.
8:02
Because you manage totally people.
8:03
Yeah so I think in terms of workplace and how that all flows around.
8:08
So I market it, I work in marketing.
8:11
So currently at Kiwi Bank, I have been surrounded by pregnant woman like my entire career.
8:17
Like at one stage I had four managers in two years gone for interleave.
8:20
It was insane.
8:22
And as a manager, like it is a challenge for sure.
8:26
Like you don't want, you know, you're best staff to be heading off on,
8:29
heading away for an extended period of time, having to replace them all that kind of stuff.
8:33
But equally it's like just the price of doing business and,
8:38
and the people that are in those roles and those positions are often like really high performers.
8:45
You want to do what's best, best by them.
8:47
Well it's also, I guess it's the idea of like for a lot of people they,
8:51
it might be their first let's just say.
8:53
I think for this particular listener, because she doesn't have a job yet,
8:59
that's so scary because you don't have the history of being good at your job,
9:03
or someone wanting to do right by you.
9:05
You still are trying to prove yourself.
9:07
And I think that is really tricky.
9:10
I never thought about that.
9:12
But also you want to be in a company that's going to help support you while you have a baby.
9:17
And there's not a lot of those companies around.
9:20
And there's actually quite a lot of implications if you're not employed.
9:23
So I'm non-HR expert.
9:26
I'm sure there'll be some in your community that can advise on this better.
9:29
But the first thing is an employee cannot discriminate against you for being pregnant legally.
9:34
So if you're going through the recruitment process and you do disclose it,
9:37
they would have to have a pretty robust, you know, hiring process to make sure that the reason you didn't get the job is because you weren't the best candidate,
9:44
not because of information you disclosed.
9:46
If you take the other approaches of waiting till you have had the offer or you're new in the business,
9:50
that to me feels completely justified too,
9:53
because I think the business gets a lot from you regardless.
9:57
Like you're pregnant for really, really long time.
10:00
So if you come into a business and, you know, the first week you arrive,
10:04
you have to have a really awkward conversation with your manager like super uncomfortable.
10:08
No one really necessarily wants to be in that position.
10:10
But I think what could potentially help is flipping the narrative on it and being like,
10:14
okay, so this woman's clearly the best candidate for the job.
10:17
That's why she got the job.
10:19
She'll be in the role for at least six months or, you know, how ever long she has to go.
10:24
She'll probably come back to the role.
10:26
So you're retaining good stuff.
10:28
And then on top of that, if you treat someone really well through this process,
10:32
then they'll have really good loyalty towards you as a business.
10:36
And the cost of hiring new people in terms of recruitment,
10:40
getting them onboarded, getting them upskilled is so high that like in my mind,
10:45
I would do anything to get the beast people in to my team.
10:48
Even if that means kind of navigating around various aspects of it.
10:53
So you think it's totally valid to not say you're pregnant in the hiring process
10:58
and that you shouldn't have to wait until three months before you go to disclose.
11:01
You should be able to say it without penalties or being treated badly in the time
11:06
that you're there while pregnant.
11:07
Ideally, yes.
11:09
And I think it would be really probably up to the vibe of the hiring manager
11:14
and like what the vibe you kind of get from the organization.
11:17
Like I was really fortunate.
11:19
So I got promoted while I was pregnant at Cuba Bank.
11:21
I was very open about being pregnant.
11:23
You know, my leaders knew that I had a miscarriage.
11:25
I was clearly trying to get pregnant.
11:27
It was never even really a thing.
11:29
Like I kept it really separate.
11:31
So I was like, yay, exciting.
11:32
I'm a pregnant.
11:33
And then I applied for this role and I didn't mention throughout the hiring process
11:37
that I was pregnant because it wasn't relevant to whether or not I was the best candidate for that job.
11:42
And the only time it came out was at the very end when I was having a conversation with my boss
11:46
around handover and stuff like that was he was just like, so you know,
11:50
let us know if there's any extra flexibility that you'll need.
11:53
And like awesome.
11:54
So so lucky.
11:56
And obviously I had a number of years of trust and rapport and things built up.
12:00
But like for me, becoming a mum being pregnant has nothing to do with whether or not
12:06
you're the best person for a job.
12:08
So that is incredibly challenging.
12:10
And there is still such a long way to go in terms of making sure that that isn't seen in a negative light.
12:17
Okay, let's get into the markets.
12:19
Well, let's get into what's been happening in the world.
12:21
So I mean, the one massive, I mean, if you've been living under, I don't know, I was about to say a rock,
12:28
but what's something even bigger than a rock?
12:30
I don't know.
12:31
I think.
12:32
Yeah, if you've been living under a nice boat, then you may have missed us.
12:36
But the markets are not having a stunning time, are they?
12:39
No, they are not.
12:41
So yeah, Monday of last week was the S&P 500's worst day since 2022.
12:48
Shit, was it?
12:49
Yeah, yeah.
12:50
No, that's bad.
12:51
Yes.
12:52
So it had over a 10.1% from its peak, which was only three weeks earlier in February.
12:58
Wow.
12:59
So three weeks before that it was at a peak.
13:01
All time high.
13:02
Oh my gosh.
13:04
Yeah, absolutely tanked essentially.
13:06
And so this is called what they call a market correction.
13:09
And this drop is worth like $5 trillion US dollars.
13:12
Oh, $5 trillion.
13:14
Yeah.
13:15
It almost sounds like fake money.
13:16
And it just doesn't even just, like, you've no idea what even a trillion is, they're on fire.
13:20
Exactly.
13:21
Yeah.
13:22
So there's too many companies to really list out that are down.
13:24
But like all of the magic seven, all of the big kind of companies are reporting a decrease in their share price.
13:31
And yeah, it's pretty crazy time.
13:33
It has bounced back a little bit.
13:35
So Friday we saw a slight bounce back.
13:37
But it's still the worst week since early 2023.
13:40
And so this is a like market-wide ball.
13:44
This isn't tech companies selling a ball.
13:47
This isn't, I don't know.
13:49
This is a really across the board.
13:51
All companies have had a real shocker.
13:52
Yeah, there are outliers.
13:53
But by and large, like the market's just completely rattled.
13:57
So can we talk about correction for anyone that doesn't understand what that means?
14:01
Yeah.
14:02
What actually do you mean by a market correction?
14:04
So a market correction is defined as a drop between 10 and 20%.
14:08
For like a short period of time.
14:10
And when it goes longer and deeper, so like 20% plus, then it becomes what they call a beer market.
14:15
And that's going to give it kind of a recessionary type, type territory.
14:19
And so beer market for anyone that doesn't know, I think this is such.
14:22
This is what Vic always explains.
14:24
Well, because you can have a beer market or a ball market.
14:27
And a beer, if you imagine when they attack, they go down on their prey.
14:31
So it's like the idea of a beer market is like tanking downwards essentially.
14:35
A ball goes down and up.
14:37
So that's kind of the way to think about it when you hear a ball or beer market.
14:40
Which I think is good to admit because otherwise you're just like,
14:43
why are they using animal eggs correctly?
14:45
And I think it's worth noting, it sounds super, super scary.
14:48
But these corrections happen pretty regularly.
14:50
So the last one happened, I think about 11 months ago.
14:53
And since the stock market reported on things from,
14:57
since I think it was 1929,
14:59
there have been over 50 market corrections.
15:02
Okay.
15:03
So it's not all as kind of scary as the headlines are necessarily making out yet.
15:07
It's if it is one of the corrections that then moves into a beer market state,
15:12
that will get things kind of more worrying.
15:14
So let me just repeat this back to you.
15:16
So the idea of market corrections, they happen all the time.
15:19
All the time.
15:21
And it's almost like a, like a quick little panic in the stock market.
15:26
And then it sort of rebalances.
15:28
Like, am I going to fall? Am I going to fall?
15:30
I'm losing my balance.
15:31
No, I've managed to like stand away two feet again.
15:33
Whereas if you're heading into a beer market, a correction,
15:38
sometimes can turn into like, no, actually we're here to stay.
15:41
This is not going to be good for the next little while.
15:43
That's happened about 20, I think it's 22 times over the last almost 100 years.
15:47
So it's not a no, but it's kind of one to watch.
15:50
But I guess again, this rhetoric is what Vic always says around dollar cost averaging,
15:55
not trying to time the market continuing on.
15:58
Is that if you're in a vest and you take a diversified long, long approach,
16:01
then you should be in with a grin.
16:03
Yeah, and I think that's such a great point because I actually weirdly feel excited
16:09
about a market correction or a dirt because I am not scared.
16:14
I mean, yeah, maybe even if it's for three years, the market's down.
16:17
I'm kind of like fine. I'm investing for a long period of time anyway.
16:20
Exactly.
16:21
And I think that that's something that we've spoken about,
16:24
honestly, till the cows come home, haven't we?
16:26
Yes.
16:27
And we will keep on hammering that home because anyone that is new to investing
16:31
or maybe not super, super clued up yet and trying to,
16:35
it might feel scary that this has happened.
16:37
But I mean, it's been ages since one.
16:39
Yeah.
16:40
You know, like, it's just it's just part of investing.
16:42
Yeah, exactly.
16:43
So what happens in the world, the market reacts.
16:46
I think that's the thing that's made sense to me with the Curve Weekly podcast
16:49
is when you start to understand the things that are happening in the world,
16:53
you then understand how it's impacting the market.
16:56
Look, it's such an obvious correlation.
16:58
There's so much happening in the world right now, particularly with Trump in power.
17:02
Exactly.
17:03
That, of course, this is happening.
17:04
Yeah, it's chaos.
17:05
Exactly.
17:06
So speaking of Trump and why this has all happened.
17:08
So the main drivers of why there's been this market,
17:12
Wobble, is so there's steel and aluminium or aluminium.
17:16
Teriffs have come into effect.
17:19
I kind of love aluminium.
17:20
Aluminum, I know.
17:21
It does sound, it sounds a lot less clunky, doesn't it?
17:23
Aluminum.
17:24
Over there, like, Kiwi Bogan Accentus, like aluminium.
17:27
But.
17:29
So janina.
17:30
So janina.
17:31
Yeah.
17:32
I mean, I'm a southern gal.
17:33
It's like hard to get in.
17:34
Not be silly, you know, but rough around the edges.
17:36
But, um, so that's the main driver.
17:38
So that's coming to effect and that impacts, you know, markets all around New Zealand.
17:42
I'm all around the world, sorry.
17:43
But sorry, what has come in with aluminium and steel?
17:46
What is that?
17:47
So, um, so Trump has put tariffs on all steel and aluminium being imported into the U.S.
17:53
Okay.
17:54
Um, with the idea of being that he wants U.S.
17:57
made steel and aluminium wood.
17:59
It's using like a whole bunch of manufacturing stuff.
18:01
Obviously, like cars hold, hold, hold your being.
18:04
But the challenges, so with steel, they import about 25% and aluminium aluminium.
18:09
Aluminum, I'm going to say aluminium the whole time.
18:11
Let's just go with aluminium.
18:12
Aluminum, they import about 50% of their, their needs.
18:15
All proud.
18:16
What would you be if you're in aluminium business that you're importing?
18:19
Yeah.
18:20
You're all of a sudden like, oh, cheers Trump.
18:22
Now our business is totally super, super scary.
18:25
And you can see that businesses will be kind of, you know, very conservative
18:28
with making moves right now, um, because of that probably.
18:32
Yeah.
18:33
And it's also just, for a long time, the world has profited off the U.S. economy.
18:39
Yeah.
18:40
And the U.S. economy has kind of bolstered up the rest of the world, but particularly with investing.
18:43
Because most of us invest in the S&P 500 or in U.S. based companies.
18:49
The fact that Trump has like, not actually, this is ours, like get off it.
18:54
Yeah.
18:55
It's sort of how it feels.
18:56
It feels like all of a sudden he's trying to cut off.
18:58
Yeah.
18:59
America from the rest of the world, which means, and we obviously don't know how this is
19:03
necessarily going to play out, but it's a weird feeling.
19:05
It's super weird.
19:06
And it's really polarizing competitors initial term.
19:09
So he was like, butted up to the stock market.
19:12
He saw that as an indicator of kind of buoyancy of his economy.
19:16
Now he just doesn't seem to give a shit.
19:18
Because the other thing, the other main driver that really rattles investors
19:23
is that he said that his policies may be recessionary.
19:26
They may cause a recession.
19:28
So that is the biggest driver.
19:30
So the tariffs coming into effect.
19:32
And then the fact that he's like, yeah, yeah.
19:34
My policies might cause a recession and just doesn't seem to care.
19:37
What is just like...
19:38
Actual health.
19:39
Honestly, wild.
19:40
Like, it's just bamboozling.
19:41
Like get whiplash looking at all the different stuff trying to be like, boost it on.
19:45
Haven't all the people that voted for him voted for him because they want to see America
19:49
grade again and profiting.
19:51
And then he's all of a sudden saying, kidding, there's going to be a recession.
19:54
Like, what does he have to say about that?
19:56
Like, who... every day he says something different.
19:58
So how does he know?
19:59
But American consumers probably didn't realize the impact that these tariffs
20:03
would have on the day-to-day goods.
20:05
Because not only as steel and aluminum a real issue,
20:09
the other really interesting area of tariffs,
20:12
which I did a lot of research on was alcohol.
20:15
That's it.
20:16
So, yeah.
20:17
So Mexico, obviously produced tequila, can only be made in Mexico.
20:21
And the US...
20:22
God bless Mexico.
20:23
God bless Mexico.
20:24
It's stunning, stunning country, delicious food, delicious drinks.
20:28
And the US imports 80% of all tequila production.
20:32
And what I found that was quite funny is that celebrity tequila brands
20:36
are even more impacted than the other ones that are owned by the big, big guns,
20:41
like DRGO and things like that.
20:43
Because they are less likely to have sophisticated supply chains,
20:46
less likely to have the kind of the backing of all these big companies
20:50
to kind of keep them in negotiate deals and things
20:54
to kind of keep the prices stable.
20:56
So, you know, Kendall Jenner, the rock, Matthew McConaughey,
21:00
there's all these celebrities.
21:01
They have these tequila companies.
21:02
George Cliney.
21:03
George Cliney, I think he's sold...
21:04
Yes, a mega.
21:05
Did he sell?
21:06
I feel like he sold his for a shitload of money at some point.
21:08
No, I can't.
21:09
But yeah, so this big trend, they're going to be really hitting the pockets.
21:12
I imagine a lot of those are not Trump supporters,
21:15
so there'll be even more of them.
21:16
Well, yes.
21:17
Well, I mean, I guess you never know.
21:18
Yeah, exactly.
21:19
But what they are doing to combat it is...
21:22
So, there was a 35% increase in imports of tequila to America in January.
21:26
So, because it's a long-life product,
21:29
like it doesn't go off very quickly,
21:31
they're clearly like getting it in before the tariffs come into a feat.
21:35
And then the CEO of Calabase's beverages,
21:39
which is the name of Kendall Jenner's company.
21:41
So, I'm point Calabase also.
21:43
I was like, this is just too much.
21:45
Yeah, he was saying they'll stop piling.
21:46
Wait, what's it called?
21:47
Calabase's beverages, which is like that.
21:49
So, if you watch the Kardashians,
21:50
Calabase is like the fancy suburb that they live in.
21:53
Okay.
21:54
It's like Southern California.
21:56
So, it's just like all very like so-called.
21:58
But, and he was saying that,
22:01
a, yet they stop piling,
22:02
and then b, that also, unfortunately,
22:05
pulling back on hiring people,
22:07
pulling back on innovation.
22:08
And so, that's like what we'll continue to see,
22:10
which is like super disappointing.
22:11
God, and also you would only have so much to import.
22:15
Like, you know, it takes so well to make tequila
22:17
and things like that.
22:18
So, I mean, while they can batch import
22:20
before tariffs come in,
22:21
that's not a long-term solution.
22:23
And inevitably, they pass on the cost
22:25
to the consumer and the other ones that suffer.
22:27
Oh, God, and it's already expensive.
22:29
Exactly.
22:30
So, yeah, not a good time.
22:32
The other key really interesting thing
22:34
about the alcohol tariffs that have come into effect.
22:37
So, this kind of needs to be seconded out,
22:39
because it's a bit of like tit for tit.
22:41
So, Trump puts tariffs on the steel
22:44
and aluminum from Europe.
22:46
And then, in retaliation,
22:48
they say, okay, American whiskey.
22:50
So, bourbon.
22:51
So, you have champagne can only be made in France.
22:53
Yeah.
22:54
Bourbon can only be made in America.
22:55
Oh, I didn't know that.
22:56
Yeah.
22:57
I don't need that.
22:58
Super interesting.
22:59
So, wouldn't it be my drink of choice?
23:00
No, neither actually.
23:01
I hate bourbon.
23:02
Yeah, it reminds me of, like, teenager's coatings.
23:04
Say, like, I've seen...
23:05
Oh, my God, coatings.
23:06
Yeah.
23:07
But, yeah, so, they have a 50.
23:09
So, they retaliated by saying,
23:10
we're going to put 50% tariff on bourbon American whiskey
23:14
and then, Trump has turned around and said,
23:15
well, like, stuff you, we're going to put 200%.
23:18
It was threatening to.
23:19
It was not confirmed.
23:20
200% tariff on alcohol coming in from Europe.
23:24
Which is just insane.
23:26
But, what is really...
23:27
So, the stocks...
23:28
So, Hainakin, European-based liquor companies
23:30
took a little bit of a hit with that news.
23:32
What is really interesting?
23:33
So, that last week was talking about Louis Vuitton,
23:36
by Hennessey,
23:37
in the ships in...
23:38
Oh, yeah.
23:39
...in the luxury side of the business.
23:41
They obviously have the liquor side of the business,
23:43
which I think is worth about 6 billion US annually.
23:46
Obviously, as Moe,
23:48
they're all of these amazing little brands.
23:51
And because the liquor brands have been struggling,
23:53
haven't they?
23:54
Particularly champagne.
23:55
Yeah, exactly.
23:56
And then, there's an over-edited overlay
23:58
that Bernard Arno,
24:00
big dog, spoken about a lot on the pod.
24:02
So, for anyone that doesn't know this,
24:03
Bernard, Bernard.
24:04
Bernard?
24:05
I think that's the same.
24:06
Oh, no, yeah.
24:07
Bernard, old, something anyway.
24:09
Yeah.
24:10
He's like the richest man in the world.
24:11
And he owns LVMA.
24:12
So, he owns essentially all of these brands
24:15
that are owned by Louis Vuitton, Moe, Hennessey.
24:18
Which is heaps of luxury brands, heaps of other brands, etc.
24:22
So, he has had a longstanding relationship with Trump,
24:24
since, like, the 80s.
24:26
Oh, really?
24:27
And he was at his inauguration,
24:29
like, sitting with other billionaire boys
24:31
of like Elon Musk.
24:32
Oh, the billionaire boys, sorry,
24:34
I just dropped my microphone.
24:35
Yeah.
24:36
So, and he pays off exactly.
24:37
Yeah, really?
24:38
Surely.
24:39
Surely, you should be picking up the phone
24:42
and being like, bro, did you think about your threat
24:45
that it would impact me and like, all of that dynamics?
24:48
So, it'll be so interesting to see if they follow through
24:50
in the threat or if like, there is enough,
24:52
because clearly in his administration,
24:54
individuals have a lot of power.
24:55
So,
24:57
But I can't imagine how annoyed you would be
25:00
if your BFF is essentially wiping out.
25:03
A shit ton of your own personal money.
25:06
You'd be like, can you not?
25:08
Yeah.
25:09
But even the fact that they have pulling power
25:11
just as billionaires and mates
25:13
over an entire world's economy
25:16
is scary.
25:17
So bizarre.
25:18
It is.
25:19
Because if you think about the types of,
25:20
I mean, I don't know what Bernard's like,
25:22
but I don't know what any of those men are like.
25:24
Obviously, I've made some serious judgments over my time.
25:28
But I don't know.
25:29
I mean, who knows what they're like.
25:30
The point is, is there's a tiny small amount
25:33
of incredibly wealthy people
25:35
that are able to control the literally global trades
25:41
based on their own personal vested interest
25:44
on making money through their business.
25:46
It's bizarre.
25:47
Like Trump going out and saying that he's buying a Tesla.
25:50
Are you joking?
25:51
Like, go away.
25:52
Just because Tesla is absolutely tanking it,
25:54
you've decided, oh God, I could just go on about this.
25:57
I know.
25:58
It's so annoying.
25:59
Yeah.
26:00
But there's also some good and interesting news
26:03
coming out at the moment as well.
26:04
Okay.
26:05
So giving me something positive.
26:06
Yeah.
26:07
So let's take a wee breather from tariffs.
26:08
They are, like, it's one of those things where I'm really
26:10
sick of talking about Trump and tariffs and all the stuff.
26:12
But like, it's just unavoidable.
26:13
Like, we would just be not up with a play
26:15
and at least we didn't cover it and do that.
26:16
I wonder if we could rename them.
26:17
Because even just the word tariffs is sounding to you.
26:19
And I can't spell it.
26:20
No.
26:21
Like, two hours, the two weeks.
26:22
The two weeks.
26:23
The one hour.
26:24
It is confusing, isn't it?
26:25
Maybe we call them baby teas or something.
26:28
Someone will say, like, a snippet of this podcast.
26:30
And they'll be like, who's this chick?
26:31
This is aluminum and like, baby tea.
26:33
Like, what were they thinking?
26:34
Getting her to fill in for that.
26:36
So Pepsi.
26:37
Obviously, they've Pepsi.
26:38
A whole bunch of other beverage brands.
26:40
They also have snacks.
26:42
Do they have snacks?
26:43
Yeah.
26:44
So in the UK, they own walkers.
26:45
Risps.
26:46
Walkers walkers.
26:47
Oh, my God.
26:48
I think I love these.
26:49
Yeah.
26:50
They're pretty popular chap.
26:51
They also have Doritos.
26:52
And in New Zealand, they have Bluebird.
26:54
And in months, other brands.
26:56
But just so everyone.
26:57
Oh, yeah.
26:58
So basically, they've got a lot of different.
27:00
They keep stuff.
27:01
Yeah.
27:02
Like, all those big companies, like Unilever or Procter and Gamble,
27:04
they have like lots and lots of different brands.
27:06
So they, it's being widely reported that they're in late stage talks
27:11
to acquire this company called Poppy.
27:13
So I hadn't heard of it mostly because it's predominantly in the US.
27:17
But it's a really, really, really cool company.
27:21
And Pepsi isn't talks to buy it apparently late stages
27:24
for over $1.5 billion in US dollars.
27:26
Sure.
27:27
That's what I actually really liked their brand name.
27:29
Just stunning.
27:30
Absolutely.
27:31
Absolutely stunning.
27:32
Yeah.
27:33
Cool.
27:34
It's really cool.
27:35
Oh, I like the look of this.
27:36
Yeah.
27:37
It feels fun.
27:38
It feels fruity.
27:39
It feels young.
27:40
It feels cool.
27:41
Exactly.
27:42
Yeah.
27:43
Exactly.
27:44
So they have only been around since 2018.
27:45
Wow.
27:46
This is super new.
27:47
Yeah.
27:48
They got the big break on Shark Tank.
27:49
So the American version of Dragonstone.
27:51
Got it.
27:52
And literally like a husband and wife duo
27:55
who were like, we want to create drinks that are kind of better for you
27:59
than what we currently have out there.
28:02
Oh my god.
28:03
She went on Shark Tank nine months pregnant.
28:04
Yes.
28:05
Also with her second child.
28:06
Cool.
28:07
Like, absolutely insane.
28:08
And what they've managed to do was they, with my marketing head on,
28:12
they have had like a laser focus on their branding.
28:14
As you said, it's like super fun.
28:16
It articulates what they're trying to sell really, really clearly.
28:21
They jumped on trends really quickly.
28:24
So they were an early tech talk.
28:26
They sold by Amazon and they launched during the pandemic.
28:30
And so all of these things have come together to really craft
28:33
this beautiful brand story and set of products.
28:37
I'm looking at it now.
28:38
It's like, she obviously is mixing fruit juices
28:41
with apple cider vinegar, prebiotics and sparkling water.
28:44
I mean, the idea of functional drinks
28:46
and things that are better for you is so genius.
28:49
Exactly.
28:50
So functional drinks is becoming this really massive category
28:55
within drinks.
28:56
And what they mean by functional is some added health benefit.
28:59
So it's no longer the kind of the taking away stevia vibes.
29:03
It's, okay, what can we add into drinks to make them better for you
29:07
or have more function?
29:09
Well, it's kind of stemmed from originally kombucha, right?
29:12
Kombucha classed as a functional drink.
29:14
And it's probably probiotics of kombucha.
29:16
Totally.
29:17
And which is, which they had fiber to it for like gut health.
29:22
Well, I mean, like even in the weekend,
29:24
I bought a kefir drink.
29:25
Nothing.
29:26
It's stuff like that.
29:27
It's kefir.
29:28
It's like adaptogens.
29:29
It's all sorts of stuff that are essentially,
29:31
they're trying to commoditize health
29:33
but in the drink industry, essentially.
29:35
Which is so genius because they've done it with vitamins
29:38
and supplements.
29:39
Exactly.
29:40
They've done it with like, you know,
29:41
the food industry massively.
29:43
But drinks has kind of remained untouched for a while.
29:46
So this feels, yeah, it makes so much sense.
29:48
All of a sudden, I'm like, this is actually a genius
29:50
investing idea in terms of like the future of drinks.
29:55
It's probably less alcohol.
29:57
100%.
29:58
And like maybe just less stuff that's bad for you.
30:01
Like maybe even coffee will end up being replaced
30:03
with things like matcha or other functional, you know?
30:06
Yeah, yeah, yeah.
30:07
Basically, like just everyone's trying to optimize their health.
30:09
100%.
30:10
Yeah, and I think it's really interesting that like a big corporate
30:13
like Pepsi is saying we're putting like billions of dollars
30:16
of like beating, but this is the thing.
30:19
And what's really interesting,
30:21
it'll be watching, seeing how this play out,
30:23
seeing more products come to market in New Zealand.
30:25
We see some really cool startups like Moody.
30:28
It's created a pre-botic soda.
30:29
It's just gone to market.
30:30
There's obviously like no ugly and adepyre
30:33
and all of these functional drinks.
30:34
So true adepyre, that's such a good point.
30:36
Yes.
30:37
So you're seeing kind of all come to fruition.
30:39
And it's off the back of the fact that,
30:41
yeah, people drink less than they used to.
30:43
They don't want to put necessarily as much shit in their bodies.
30:46
Yeah.
30:47
And it's very exciting to watch.
30:48
And the good thing about if this acquisition goes ahead
30:51
is that if you invest in the S&P 500,
30:54
Pepsi is an S&P 500 company,
30:56
you're also investing in poppy.
30:58
And poppy, potentially, if this goes ahead.
31:00
I really love this.
31:01
And I think it's such a good example of seeing a trend early on,
31:05
because this is something we could even talk about in the investing club
31:08
about what other companies either are public
31:11
or are close to being public.
31:13
And how can we benefit from this?
31:15
Because I reckon it's going to be huge for someone
31:17
like myself who is definitely health conscious.
31:20
And also, I don't drink a lot,
31:22
but I also feel so boring when I'm not having a drink.
31:26
I want to still enjoy a drink with friends,
31:28
but I don't like waking up feeling like total ass the next day.
31:32
And when I was pregnant, this became really apparent as well.
31:35
Is that the market is getting so much better
31:38
in terms of non-alcoholic alternatives,
31:40
whether it be 0% beer,
31:42
like at the F1 on the weekend, bandwagon, F1.
31:45
That's the F1.
31:46
A Formula One watcher.
31:47
The main sponsor on the track is Heinrich & Zero.
31:51
Really?
31:52
So you can see all the companies around the world are starting to be like,
31:55
okay, actually, we have to adapt,
31:57
or otherwise we're going to get left behind.
31:59
Yeah.
32:00
And so it's super, super interesting.
32:01
And when I was going out,
32:02
I didn't want to have a sugary coke or a juice.
32:04
I want something that makes me feel like I'm still part of the crew
32:08
enjoying the ritual of having a beverage,
32:11
but it's not being something that's going to make me feel really average.
32:14
I love this.
32:15
I think this is such a cool story.
32:17
Yeah.
32:18
And it's a beautiful brand.
32:19
They've done such a good architecture around it.
32:21
So from marketing perspective, just fizzing.
32:23
Yeah, love this.
32:24
Literally fizzing.
32:25
We are fizzing.
32:26
One of the things I wanted to speak about,
32:28
and I don't know if this is something you're open to,
32:30
but Tesla, for me,
32:33
this is something we've again spoken about in the club,
32:36
and I'm still unsure as to how I feel about it,
32:39
but I'd love to do a quick update on what we saw in the last few weeks,
32:44
because this is one that's been hit hard,
32:46
and it's also someone that's in bed with Trump.
32:48
So it's kind of weird to think,
32:50
you know, some of these massive billionaires that have been by his side
32:54
are now looking at their companies
32:56
absolutely going down and down and down.
32:59
Yeah.
33:00
So Tesla took the biggest hit, essentially, of the week.
33:04
So in 2025,
33:05
It's a smashing like Tesla,
33:07
then hitting the face with like a wet face or something.
33:10
The Elon Musk dude,
33:11
I know that Zuckerberg was like saying he was going to be a fighter whatever.
33:14
So Tesla stops at down 30%,
33:17
in 2025 alone,
33:19
and 15% in the last week.
33:22
That's crazy.
33:24
So they have lost,
33:26
so they went massively up when Trump wanted to power,
33:29
but in nature of Elon and Trump.
33:31
And they've just absolutely lost any game that they had.
33:34
And it's so interesting,
33:36
because people,
33:38
like the market follows what people think is going to happen, right?
33:41
So originally, people thought,
33:43
okay, so Elon Musk and Donald Trump are mates,
33:48
which means Donald Trump is going to put stuff in place
33:51
that's going to benefit Tesla.
33:53
But not only, like my take on this,
33:55
not only is Tesla being hit in the face,
33:58
like a wet face with a wet face,
34:00
because everyone is just revolted
34:03
with his being in like a friendship with Trump.
34:06
But then on top of that,
34:08
all of the sort of like,
34:10
I guess, investor sentiment
34:12
or how people are like,
34:13
there's vandalism,
34:14
there's like, people are off-ish.
34:16
People are getting bumper stickers that say like,
34:18
I bought this car before Elon lost his mind and stuff like that.
34:21
Like, if I owned a Tesla,
34:23
I'd be quite nervous about the resale value.
34:26
If that's something that was important to me.
34:30
And I think it's really, really interesting
34:32
when you think about it, again,
34:33
with my marketing head on,
34:35
from a branding perspective,
34:37
and when an individual is so closely related
34:40
to a brand and a product.
34:43
So, you know, you're in Vic,
34:44
you know, make sure you don't do anything to dodgy.
34:46
Because your personal brands are like,
34:48
intrinsically linked with the curve.
34:50
And when it goes wrong,
34:52
you saw this with like Kanye Weston,
34:53
Yeezy and stuff as well.
34:55
That's a good point.
34:56
Is that like,
34:57
the ramifications from a reputation perspective
35:00
are huge.
35:01
It should be huge and damage your business.
35:03
Like, I think in Germany,
35:05
sales are down 76% in February,
35:08
versus the February before.
35:10
76%,
35:13
versus the year prior.
35:15
And like, I think your point around
35:17
the face of a brand is such a good one.
35:19
Because while it can catapult it in the right direction,
35:21
it can catapult it in the wrong direction.
35:24
And you make some bad moves, yeah.
35:26
And it's a lot of pressure, you know.
35:28
And even if we thought about the curve,
35:30
it's true. Like, we're all human.
35:31
We all make mistakes.
35:32
Yeah.
35:33
There is a very real fear that you could say something
35:35
and just get totally canceled.
35:37
Because that's the reality.
35:38
You have to be so aware of how you're speaking
35:42
and talking.
35:43
And when I say influencing,
35:45
I don't mean like influencer.
35:47
I just mean,
35:48
if you are saying stuff that people are listening to,
35:50
you have to be aware of how that's going to be interpreted
35:53
and the impact that it has.
35:54
And so while that can be a really good thing,
35:57
what we've seen with Elon is that
35:59
it can be a really good thing for a while
36:01
and people see him as this innovation gang
36:03
who just like sees the writing on the wall
36:05
before happens in blah, blah, blah.
36:07
But everyone's just offered.
36:09
No one wants to be associated with the brand
36:11
because of him as a person and what he represents.
36:14
And it's just like quite fascinating
36:17
to watch it all unfold.
36:19
It's super fascinating.
36:20
Like the stock, you know,
36:22
taking the long-term view,
36:23
we're going to try and keep it big proud.
36:24
It's still up 500% over the last five years.
36:27
So it's not all doom and gloom in that mind.
36:29
But I guess if you're thinking about it moving forward,
36:32
do we think it's going to rebound
36:35
or is it kind of an end of an era?
36:37
What do you think?
36:38
I have never personally been a big Tesla fan,
36:41
but I don't feel like I'm the target audience for it.
36:44
So I think historically it's kind of been quite progressive.
36:48
Like Silicon Valley vibe people that drive Tesla's.
36:52
And if you think about what Elon's doing
36:54
causing up to Trump,
36:55
he's alienated the entire group of consumers.
36:58
And then you overlay the fact
37:00
that there's less incentives for green ventures.
37:03
So people aren't getting their rebates on green cars
37:06
and there's so much competition.
37:07
Why is that?
37:08
What's the green rebate thing?
37:09
So in lots of countries,
37:10
there is incentives for people to buy electric vehicles.
37:13
Is there not anymore?
37:14
And a lot of them have been one back.
37:16
So when you feel like when the government changed over,
37:18
the green incentives to buy electric cars got one back.
37:21
So there was like a stimulation of demand
37:24
due to kind of discounting of price.
37:26
And now that's been removed.
37:28
And then you also add,
37:29
and I think you guys talked on this about this company
37:31
a few weeks ago, BYD.
37:33
Yes, yes.
37:34
So much more competition.
37:35
So yeah, for me,
37:37
I'm personally not the biggest Tesla fan.
37:39
Obviously it's in the S&P 500.
37:41
So you're kind of pseudo-going along for the ride.
37:43
What do you think?
37:44
I think you've always been really passionate about it.
37:46
I don't like Elon and anything he stands for.
37:48
It's so interesting.
37:49
My perception has changed a lot in the last week.
37:51
And even speaking to you last night,
37:52
and we were just chatting about what we would talk about,
37:55
I hearing you say,
37:57
and I think you said,
37:58
if I was to buy an electric vehicle,
37:59
I'd go and get a European car that was just happened to be an EV.
38:03
I wouldn't go and buy particularly a Tesla,
38:07
because I don't really, not only do I,
38:09
I mean, which I agree with,
38:10
and I'm the same.
38:11
If I had the money to invest in an EV,
38:13
it would not be a Tesla.
38:14
No, and like, my life's said,
38:15
it's not super practical with a Labrador and a baby.
38:17
No, it's really not.
38:18
Yeah.
38:19
But I think it's just like a real masculine brand.
38:21
If I was to spend that much money on a car,
38:23
I think I would do a more traditional car brand
38:26
that happened to be a electric.
38:28
Me too.
38:29
But yeah, are we the people that Tesla wants long-term probably use?
38:33
Currently probably no, but yeah,
38:35
they've done a really good job of passing off
38:37
their existing customer base.
38:38
Yeah, which is super interesting.
38:40
And I guess also, my main takeaway here is,
38:43
I would imagine a lot of Trump supporters
38:46
are probably not Tesla buyers.
38:48
Yeah.
38:49
It's almost a double whammy.
38:50
It's like, he's alienated his existing actual customer base.
38:53
Yeah.
38:54
And he's also winding back all of these,
38:56
like, climate initiatives and stuff.
38:58
But then his promoting is my Elon electric car.
39:01
Like, it's just, again, it's come, like,
39:03
come Bob gelating.
39:04
Just come Bob gelating.
39:05
Yeah.
39:06
You don't know where to look.
39:08
So, like, honestly, who knows?
39:11
Yeah, I think, I think if I was to invest in Tesla,
39:14
it would be tiny, tiny bits.
39:16
Yeah.
39:17
And just to see what happens,
39:18
it's definitely not a, I want to invest in this company
39:20
because I want to see it grow.
39:21
Yeah.
39:22
I'm more just like, it's doing so badly
39:24
for me.
39:25
Yeah, it's a buying opportunity.
39:26
Exactly.
39:27
Yeah.
39:28
Let's just do a quick, a few quick headlines.
39:30
Things that we've seen that we don't need to go into too much detail on.
39:32
One of them, one of the things that Vic has spoken a lot about
39:35
is Versace and the luxury space.
39:38
Yes.
39:39
And I know you wanted to speak about an update that you've seen.
39:41
Yes.
39:42
There.
39:43
What's been happening?
39:44
Yes.
39:45
So, last week, Vic mentioned around a potential takeover of Versace
39:47
by Prada.
39:48
Yes.
39:49
Who also own MUU, which is like their star performing brand.
39:51
Yeah.
39:52
And in the last couple of days, Donna Tella Versace.
39:55
Oh, beautiful pronunciation.
39:58
Thank you.
39:59
Try a bit of an aluminum.
40:02
She has stood down as the creative director of Versace.
40:06
Oh, my God.
40:07
I saw Doa Lepa post about that.
40:09
So, she must have been posting as like, you're an icon.
40:12
Exactly.
40:13
So, she's been the creative director ever since her brother died
40:16
and I think the 90s.
40:17
Wow.
40:18
So, like, 28 years or 27 years or something like that.
40:21
And she's been replaced with the former design director
40:25
who finished up in January at MUU.
40:28
So, nothing's been confirmed.
40:30
But, solidifying your place as a potential buyer
40:33
by, you know, planting someone who has had great experience
40:37
and success at the potential buyer company,
40:41
super, super interesting.
40:42
So, let's so hold on.
40:43
Sorry.
40:44
So, MUU.
40:45
So, Prada is buying Versace.
40:47
Prada also own MUU.
40:48
Yes.
40:49
And they're putting MUU's creative director into Versace.
40:52
Into Versace.
40:53
So, that feels like another kind of like...
40:57
Tech.
40:58
Tech to what was told about last week
41:00
of maybe it's hitting that direction.
41:02
Also, I wonder what will happen with MUU though,
41:04
because they're the shining star.
41:06
And obviously, whoever that creative director is knows
41:08
what the hell they're up to.
41:09
I wonder who they'll put in there.
41:10
Yeah, exactly.
41:11
Can we speak about the Euro situation?
41:14
And with everything happening in the world in America,
41:17
the potential opportunity with Europe?
41:20
Yeah.
41:21
And what's going on there?
41:22
Yeah.
41:23
So, Germany is at the moment trying to put through legislation
41:26
to be able to increase their debt,
41:28
to increase their government spending,
41:30
to spend more on defence, for obvious reasons.
41:33
And what that means, generally, is more spending,
41:37
is indicates more growth in economies.
41:40
So, if you think about the last few years,
41:42
but the pandemic, spending stimulated demand.
41:45
Yeah.
41:46
So, if that legislation goes through,
41:48
then it will stimulate spending in Europe,
41:50
and you saw their markets increase a little bit off the back of that news.
41:53
It's quite interesting, because I feel like there was some kind of link
41:58
from World War II, and their spend,
42:01
and the reason why they refused to go into debt,
42:04
like they were before.
42:05
And this is the first time they've loosened or changed that,
42:08
and increased their amount of debt that they have,
42:10
because they kind of feel like they have to.
42:12
Yeah.
42:13
So, is the idea of this that they could potentially be opportunity within
42:16
European markets?
42:18
Yeah.
42:19
And we might see growth elsewhere,
42:21
than relying so heavily on the US.
42:22
Yeah.
42:23
And so, you're exactly right.
42:24
So, the other part of it is that,
42:26
there's the Germany increase in their spending,
42:28
and there's also the fact that, because the US is such a shamozo
42:32
in the markets at the moment,
42:34
people are looking to other markets naturally.
42:36
Do you think there's ever any other podcast
42:39
that talk about the markets as a shamozo?
42:42
I don't know.
42:43
It's like my favourite word, shamozo or palava.
42:45
I love them.
42:46
I love them.
42:47
I love them.
42:48
And I couldn't agree more.
42:49
There are total shamozo.
42:50
Yeah.
42:51
So, yeah.
42:52
So, you're seeing the investors,
42:54
be rattled with the US, look to other markets,
42:57
and it's widely predicted,
42:59
and you're kind of seeing the flow of money
43:01
that Europe is going to be a big benefit of that,
43:03
as well as kind of Asian markets as well.
43:05
I wish that the EU was still attached to the UK.
43:08
No.
43:09
For that reason, like, you know,
43:11
if Europe does start flourishing,
43:13
and the UK did too,
43:14
but it's just like...
43:15
The UK will be part of that kind of catchment as well.
43:17
I know.
43:18
I just wish we were all still friends.
43:20
Yeah.
43:21
It's working, yeah.
43:22
And there's one last thing that we were going to touch on,
43:24
and it's a bit...
43:25
I have to admit something I did today,
43:28
which is...
43:30
I was going to say off-brand,
43:31
but it's not off-brand at all.
43:32
So, I was listening to the radio with my dad.
43:35
He listens to ZB in the morning.
43:37
Love it.
43:38
Which is, you know,
43:39
for anyone that's not in New Zealand,
43:40
it's a talk backstage station.
43:42
We're honestly the only people that call up
43:44
at, like, 65 plus.
43:46
So, we were...
43:47
I was in the kitchen,
43:48
and Dad had on ZB in the background.
43:50
They were talking about Kiwi Saver.
43:53
Yes.
43:54
And whether or not, you know,
43:55
we should be increasing, you know,
43:57
the amount people have to put to full proceed
43:59
or if it should be mandatory,
44:00
blah, blah, blah, blah.
44:01
Anyway, I was like,
44:03
I should call in.
44:04
And my dad was like,
44:05
Oh, my gosh.
44:06
You should.
44:07
Did you do it?
44:08
I called in.
44:09
Did you get all right?
44:10
Yeah, I called in,
44:11
but I will hold on, mate.
44:12
So, I called in,
44:13
right now.
44:14
I should have listened to that.
44:15
So, basically, I called in,
44:16
and then I panicked,
44:17
and I was like, Oh, I don't have time
44:18
to listen to this.
44:19
I hung up.
44:20
I had a shower.
44:21
I like, you know,
44:22
I started getting ready for my day.
44:23
And then I had a miss call,
44:24
and I thought,
44:25
Oh, I don't know who that could be.
44:26
So, I called it back.
44:27
Because it wasn't the number I'd call.
44:28
Gotcha.
44:29
You know, it turns out it was ZB calling me back.
44:30
I'm going to make it.
44:31
They had no idea who it was.
44:32
They were obviously just, like,
44:33
desperate for callers.
44:34
And we're like,
44:35
Oh, we'll call this person, Max.
44:36
Anyway, they...
44:37
Then,
44:39
What happened?
44:40
I ended up on ZB,
44:41
talking to Carrie,
44:42
someone,
44:43
about the importance of Carrie's favourite.
44:44
And I...
44:45
I don't know.
44:46
I only think 15 minutes,
44:47
yabbering away,
44:49
about how...
44:50
Incredible.
44:51
It was so...
44:52
My dad was obviously
44:53
listening in the kitchen.
44:54
Well, I was after my bedroom.
44:55
You weren't the person that had the feedback
44:56
of the radio in the...
44:57
Oh, right.
44:58
No, I didn't.
44:59
But I was like,
45:00
had my window open,
45:01
and I was like, You know what, Carrie?
45:03
Like, just really?
45:04
And then you knew I opened up the door,
45:05
and dad was like,
45:06
I recorded the whole thing.
45:07
I was like, Oh, God.
45:08
But anyway,
45:09
Yeah.
45:10
Basically,
45:11
there's some stats that have come out about...
45:12
About...
45:13
Can we say about...
45:14
About the disproportionate amount
45:16
and men's accounts to women?
45:17
So can we chat about some of that?
45:19
Yes.
45:20
So, for the second year in a row,
45:21
the Retirement Commission
45:23
has reported that there's a 25% difference
45:26
between the...
45:27
The...
45:28
Can we say the balances of men and women?
45:30
And this is a topic super passionate to my heart.
45:32
I actually did a talk on it
45:33
in my workplace last year around
45:35
why this is...
45:36
Don't you?
45:37
Yes.
45:38
Like, you stuck and didn't...
45:39
Yeah, we got...
45:40
Yeah, we got...
45:41
Like, can we say the provider in?
45:42
We got some experts from across the business.
45:43
Cool.
45:44
Because, like, so, yeah,
45:45
there's 25% difference
45:46
and can we say the balances
45:47
between men and women?
45:48
So that's...
45:49
And it's been the same over the last two years.
45:50
And there are some obvious...
45:51
And some not-so-obvious drivers of this.
45:53
And it's not things that will change overnight,
45:55
but it's hopefully things that, you know,
45:57
as a society,
45:58
we can continue to elevate.
45:59
So the first one is obviously that...
46:01
There are a lot of women
46:03
who have lower paying jobs than men.
46:04
So if you think about lots of, like,
46:06
the care industries and all those kind of things
46:08
that are unfortunately
46:09
and undeservedly lower paying.
46:11
So true.
46:12
They are contributing less,
46:14
just because...
46:15
Because they earn less.
46:16
They have less to contribute.
46:17
Because if you're contributing
46:18
3% of $100,000 salary,
46:20
it's very different to a $25,000 salary.
46:22
Exactly.
46:23
And then there's obviously
46:24
that issue with pay parity,
46:26
so that men often earn more than woman for the same job.
46:29
So lower earning jobs,
46:32
potentially also,
46:33
not only inspection for the same jobs.
46:35
The other thing is obviously they take time out.
46:37
That's a huge one, isn't it?
46:39
Yeah, and then they re into the workforce
46:41
may not necessarily re-enter full-time.
46:43
So a lot of it is to do with the idea
46:47
that we don't earn as much,
46:49
not only within, like, the role that we're doing,
46:52
but we then take time out,
46:53
or we come back part-time.
46:54
So there's a huge chunk of a woman's life,
46:57
where they're just can, like,
46:59
contributing significantly less,
47:01
for many kind of more lifestyle reasons
47:03
in terms of taking time out.
47:05
And then another really interesting reason
47:07
is that often in the household,
47:09
some will say,
47:10
oh, one person can do KiwiSaver.
47:12
And to me, that is just so scary.
47:14
Obviously it's relationship property,
47:16
so let's explain that for people who don't know.
47:18
Yeah, so KiwiSaver is
47:20
determined as relationship property,
47:22
so at least you have a contract out agreement.
47:24
Which is like a pre-knock.
47:26
Like a pre-knock, exactly a pre-knock in New Zealand.
47:28
You guys have a great upset on that.
47:29
We actually do,
47:30
and I've just recorded another one,
47:32
because as I'm about to try and get into the property market,
47:35
I was like, this is something I need to sort of refresh,
47:37
but actually for anyone that wants to listen,
47:39
who's interested in contracting our agreements,
47:42
let me just get this up,
47:43
because it actually is a really good episode.
47:44
Really good episode.
47:45
Here we go.
47:46
Raising the Kiwi episode 57,
47:48
everything you need to know about pre-knocks.
47:50
So with that, essentially,
47:52
it's your retirement savings shared,
47:55
so relationship property at its core,
47:57
like in the most simple turn.
47:59
It's nothing to do with property or houses.
48:01
It's your shared assets that are considered shared
48:04
that would be split 50-50 if you separated.
48:07
So are you saying a lot of people
48:09
don't contribute or only one does?
48:11
Yes.
48:12
Because they're like, well,
48:13
we're both going to get access to it.
48:14
Yes.
48:15
And that in some ways makes sense,
48:16
but also from like a female independence,
48:19
having access to money,
48:21
as well as there's very different,
48:23
it's very different to be entitled to money
48:25
and having access to money.
48:27
And also, the woman is potentially
48:29
missing out on the government contributions,
48:31
employer contributions.
48:33
So we were really reminded by these experts
48:36
that we spoke to last year that, like,
48:38
everyone should, ideally,
48:39
if you can afford it,
48:40
obviously not everyone's in the position to contribute,
48:42
but if you can,
48:43
get a Kiwi saver,
48:44
make sure you're not missing out on any of the free money
48:47
that's available to you.
48:48
But also, like a way to go about that could be,
48:51
if you think, okay,
48:52
well, we don't have enough for both of us to be.
48:54
Yeah.
48:55
Contributing, because I'm not working in you are.
48:58
Yeah.
48:59
Totally valid makes so much sense.
49:01
Split the amount that you're investing
49:03
between yours and his.
49:04
Exactly.
49:05
Like, just take the exact same contribution
49:07
and put it between the two,
49:08
so that you've got it in your name.
49:09
Yeah.
49:10
And these heaps of funds,
49:11
right, that you can mimic Kiwi saver,
49:13
but it just runs effectively.
49:14
Oh, true.
49:15
So you could totally eventually have matching funds,
49:17
if you wanted.
49:18
That's quite a good idea.
49:19
I love that.
49:20
Yeah. So it's pretty sad in terms of
49:21
not seeing any progress in that space,
49:23
but hopefully, you know,
49:24
we can all kind of continue to advocate
49:27
for education around it.
49:29
Yeah.
49:30
And that woman will continue to champion it.
49:32
Can I just say Rachel,
49:34
I think you have absolutely nailed this.
49:38
No, seriously.
49:39
I don't know about that.
49:40
No, seriously.
49:41
You have clearly done so much research
49:44
and a sole clue to it.
49:45
It was really nice to use my brain
49:47
for something other than, like,
49:48
making sure I'd nailed nap time.
49:50
No.
49:52
No, honestly, I've loved this.
49:54
Like, thank you so much for being on the part.
49:56
No, thank you so much for having me.
49:57
I've spent awesome.
49:58
And yet, I hope I have a couple of us
50:00
like a total creep.
50:01
And just my fandom of the curve.
50:03
But I just, like, have so much admiration
50:05
for whatever you guys are doing.
50:06
Oh, thank you.
50:07
And like, the exponential knowledge
50:09
sharing that's happening is super cool.
50:11
Oh, thank you. That actually really means a lot.
50:13
And yeah, loved having you.
50:14
So, you know, you're hired for next week.
50:16
So we'll see you again next week.
50:18
Yeah.
50:19
Maybe we do Friday.
50:20
So we can sort the admin off.
50:21
Let's go.
50:22
Yeah, totally.
50:23
But yeah, thank you so much to everyone
50:25
else who did get in touch to try
50:27
and be the fuller for Vic.
50:29
I think we're going to do this more.
50:31
Just because it's really fun to give other people
50:33
the opportunity to be on the podcast.
50:34
And also, it's really good for Vic
50:36
and I'd be able to have a holiday.
50:37
Yeah.
50:38
You deserve it.
50:39
Yeah.
50:40
We really do.
50:41
So thank you for listening.
50:42
And yeah, we'll be back next week with Rachel.
50:43
Awesome.
50:44
Thanks.
50:45
Thank you so much for listening to The Curve Weekly.
50:47
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50:49
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50:51
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50:52
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50:54
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50:56
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50:57
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50:59
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51:01
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51:03
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51:04
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51:07
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51:08
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51:09
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51:10
Bye.
51:11
See you next Tuesday.
51:13
Well.
51:14
See you next Tuesday.
51:16
I mean Monday.
51:18
No, actually though, new episodes
51:20
out every Tuesday.
51:24
Okay, quickly, The Curve was created
51:26
to empower and educate you about investing,
51:28
but we are not financial advisors.
51:30
Our platform exists for educational purposes only,
51:32
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51:34
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51:36
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51:39
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51:41
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51:44
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51:46
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51:48
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51:49
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51:50
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