Latest / What the Flux / Big Fed budget moves | CSL’s $10 billion headache | Dua Lipa is suing Samsung

Transcript

Big Fed budget moves | CSL’s $10 billion headache | Dua Lipa is suing Samsung · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Bratt and Justin and it's Wednesday, at thirteenth of May.
• 0:09
  Speaker 1: Juzzy Boy JB High Fight is battling the ATO over
• 0:12
  Speaker 1: a logo. Yep, that's right. JB bought the Good Guys
• 0:16
  Speaker 1: for eight hundred and seventy million bucks back in twenty sixteen,
• 0:18
  Speaker 1: and now they're kind of write down the value of
• 0:21
  Speaker 1: the Good Guy's logo. But the ATAH is saying, old
• 0:23
  Speaker 1: on a second, that deduction is not legit. So I'm saying,
• 0:26
  Speaker 1: Doesy Boy gets the popcorn out?
• 0:28
  Speaker 2: I'm eating I'm eating nibble nibble floxam. The federal budget
• 0:32
  Speaker 2: has just been dropped, and that means in the Flux app,
• 0:34
  Speaker 2: we are covering it from all corners, everything you need
• 0:37
  Speaker 2: to know about what changes are made, how it impacts you,
• 0:39
  Speaker 2: and also some calculations to show what the difference is
• 0:42
  Speaker 2: between the current state and the future state under this
• 0:45
  Speaker 2: new federal budget. So if you want to learn more
• 0:46
  Speaker 2: about what's happened in the federal budget, make sure to
• 0:48
  Speaker 2: download the Flux app and check out our latest.
• 0:50
  Speaker 1: Articles three comprehensive stories Today, Juzzy Boy, let's do it
• 0:54
  Speaker 1: for our first their labor government has hands down it's
• 0:57
  Speaker 1: twenty twenty six federal budget and it includes the biggest
• 0:59
  Speaker 1: overhaul to Australia's property tax system in twenty five years. Wow,
• 1:03
  Speaker 1: property investors, you may need to sit down for this one,
• 1:06
  Speaker 1: so tell me more so, jug boit. This is Jim
• 1:08
  Speaker 1: Chalmer's fifth budget, is treasurer and after weeks of speculation,
• 1:11
  Speaker 1: Labor finally pulled the trigger on some huge budget changes.
• 1:15
  Speaker 2: The headline move was that the fifty percent capital gains
• 1:18
  Speaker 2: tax discount is getting cut from July twenty twenty seven.
• 1:21
  Speaker 1: And will be replaced with inflation indexation.
• 1:23
  Speaker 2: But be man, that's not all. Negative gearing is also
• 1:26
  Speaker 2: getting a glowdown.
• 1:27
  Speaker 1: From July twenty twenty seven. Investors will only be able
• 1:30
  Speaker 1: to negatively gear new builds, not existing properties.
• 1:34
  Speaker 2: And together these changes are the biggest shake up to
• 1:36
  Speaker 2: Australia's property tax system in twenty five years.
• 1:39
  Speaker 1: What else is in this budget, Juzsey boy.
• 1:41
  Speaker 2: For small businesses, the twenty thousand dollars instant asset right
• 1:44
  Speaker 2: off is being made permanent.
• 1:45
  Speaker 1: And a one off tax offset for every Australian who
• 1:48
  Speaker 1: earns a wage and pays tax. But juzzy boy, let's
• 1:50
  Speaker 1: be a real The negative gearing and capital gains tax
• 1:54
  Speaker 1: changes are what everyone is talking about.
• 1:57
  Speaker 2: So what is the key learning here?
• 1:58
  Speaker 1: Negative gearing is when you invest property costs you more
• 2:01
  Speaker 1: to run than it earns in rent.
• 2:03
  Speaker 2: The mortgage interest, the council rates, the property management fees,
• 2:06
  Speaker 2: surprise plumbing call outs at eleven PM. All of it adds.
• 2:09
  Speaker 1: Up right now. Those losses can be deducted against the
• 2:12
  Speaker 1: property owners income, including their salary. So if you're in
• 2:14
  Speaker 1: one hundred and fifty thousand dollars a year and your
• 2:16
  Speaker 1: investment property loses twenty thousand dollars a year, you only
• 2:18
  Speaker 1: pay income tax on one hundred and thirty thousand dollars.
• 2:21
  Speaker 1: And according to the ATO, around one point three million
• 2:23
  Speaker 1: Australians negatively gear a property.
• 2:26
  Speaker 2: But under the new rules, the negative gearing will only
• 2:28
  Speaker 2: apply to new.
• 2:29
  Speaker 1: Bills, so existing investment properties no longer are eligible for
• 2:33
  Speaker 1: negative gearing from July twenty twenty seven.
• 2:35
  Speaker 2: So man, man, what does that mean for property prices
• 2:37
  Speaker 2: and rental prices?
• 2:39
  Speaker 1: Well? Hard to know. Some think house prices could fall
• 2:42
  Speaker 1: because property investing becomes less attractive, but rental prices could
• 2:46
  Speaker 1: rise how so well, Australia's National vacancy rate is already
• 2:49
  Speaker 1: sitting at just one point one percent, which is below
• 2:52
  Speaker 1: what's considered a balanced market.
• 2:54
  Speaker 2: So if there are fewer landlords, it means fuel rentals
• 2:56
  Speaker 2: and in a market this tide that means less supply
• 2:59
  Speaker 2: and rents.
• 2:59
  Speaker 1: Could go for now, though, Juzzy boy, all we can
• 3:01
  Speaker 1: do is watch and wait for.
• 3:03
  Speaker 2: Our second story. CSL has seen nearly ten billion dollars
• 3:07
  Speaker 2: wiped from its market value after writing down a multi
• 3:10
  Speaker 2: billion dollar acquisition it made just three years ago.
• 3:13
  Speaker 1: And now investors other ones hemorrhaging. Judge boy, tell me more.
• 3:15
  Speaker 2: Okay, So CSL is the Melbourne founded biotech giant, actually
• 3:19
  Speaker 2: started in the labs at CSIRO.
• 3:21
  Speaker 1: And these days CSL has one heck of a biotech empire.
• 3:24
  Speaker 2: Yeah, it's got c CL Bearing, which is the core
• 3:27
  Speaker 2: business specialized in plasma derived therapy which helps people with
• 3:30
  Speaker 2: bleeding disorders. Its Influenza Arm, which is the second largest
• 3:33
  Speaker 2: influence vaccine company in the world. And finally, it's got
• 3:36
  Speaker 2: CSL Vifour, which focuses on iron deficiency, which is ironic
• 3:40
  Speaker 2: because shareholders probably felt a little lightheaded after the news yesterday.
• 3:44
  Speaker 1: Yes, juzy boy, the big news is that CSL just
• 3:47
  Speaker 1: cut its earnings forecast, the same earnings forecast it had
• 3:50
  Speaker 1: reaffirmed just three months ago.
• 3:52
  Speaker 2: Yeah, it's warned that its revenue guidance will drop and
• 3:55
  Speaker 2: its profit gardens will drop as well.
• 3:56
  Speaker 1: But there's more blood on the lab coat here. CSL
• 4:00
  Speaker 1: also warned of a five billion US dollar impairment on
• 4:03
  Speaker 1: the VI four business.
• 4:04
  Speaker 2: That's the business in twenty twenty two that have bought
• 4:06
  Speaker 2: for eleven point seven billion US dollars.
• 4:08
  Speaker 1: So we're talking in almost forty five percent right down
• 4:11
  Speaker 1: in just four years.
• 4:12
  Speaker 2: Next minute, CESEL shares dropped eighteen percent.
• 4:15
  Speaker 1: And some analysts have called these results a kitchen sink downgrade.
• 4:18
  Speaker 2: So what is the key learning here?
• 4:20
  Speaker 1: Sometimes the best time to dump the bad news is
• 4:22
  Speaker 1: when you're already having a very bad day.
• 4:24
  Speaker 2: Drop every problem, every write down, every mistarget in a
• 4:27
  Speaker 2: single announcement.
• 4:29
  Speaker 1: Does avoid The logic is actually pretty rational. If your
• 4:31
  Speaker 1: stock is already falling and you have a new CEO
• 4:33
  Speaker 1: coming in, it's a pretty good opportunity to clear the
• 4:36
  Speaker 1: decks entirely.
• 4:37
  Speaker 2: That way, the new leader gets a clean slate.
• 4:39
  Speaker 1: And any improvement looks like a recovery story.
• 4:42
  Speaker 2: We've seen his playbook before yes.
• 4:44
  Speaker 1: Enter tab Corp. When new CEO Gil mcglockan arrived in
• 4:46
  Speaker 1: twenty twenty four, he immediately unloaded a one point four
• 4:49
  Speaker 1: billion dollar loss plus some massive rite downs.
• 4:52
  Speaker 2: Which all happened before he joined the company.
• 4:54
  Speaker 1: Of course, is that the Tab Corp quote required change
• 4:56
  Speaker 1: as a way to reset expectations.
• 4:58
  Speaker 2: But be man at the risk is that invests have
• 5:00
  Speaker 2: to trust that this really is the bottom.
• 5:02
  Speaker 1: And clearly some still are not so sure.
• 5:05
  Speaker 2: For our third and final story, Jewel Leipa is suing
• 5:08
  Speaker 2: Samsung for fifteen million US dollars after it put her
• 5:11
  Speaker 2: face on TV boxes to sell TVs without a knowledge,
• 5:14
  Speaker 2: without a permission, and without paying her a cent.
• 5:16
  Speaker 1: Samsung's new marketing strategy is put you a leaper on
• 5:20
  Speaker 1: it and hope for the best. Tell me more.
• 5:22
  Speaker 2: Okay, So Samsung Electronics is the South Korean tech giant.
• 5:25
  Speaker 2: We're talking TVs and fridges and smartphones, washing machines, air conditioners.
• 5:29
  Speaker 1: Basically, if it plugs into a wall, Samsung is likely
• 5:32
  Speaker 1: to be making it.
• 5:33
  Speaker 2: So a bit aboutground on this story. Jewel Leipa performs
• 5:35
  Speaker 2: at Austin City Limits in twenty twenty four, and a
• 5:37
  Speaker 2: photo from that performance ended up on Samsung TV boxes.
• 5:41
  Speaker 1: And here's the thing. Dua owns the copyright to that photo.
• 5:44
  Speaker 2: Samsung didn't ask, they didn't pay, they just used it.
• 5:46
  Speaker 1: When she found out about this pick on TV's in
• 5:49
  Speaker 1: June last year, she told Samsung to stop using my image.
• 5:53
  Speaker 2: Sam Zung said no repeatedly.
• 5:55
  Speaker 1: So now she's suing Samsung for fifteen million bucks for
• 5:58
  Speaker 1: copyright infringement and trade breach. Well sounds interesting. What's the
• 6:01
  Speaker 1: key learning here?
• 6:02
  Speaker 2: Celebrity endorsements only work because they're controlled and their brand
• 6:06
  Speaker 2: is not diluted.
• 6:07
  Speaker 1: Brand dilution is when a brand's name or image starts
• 6:11
  Speaker 1: appearing in places that water down the brand's reputation.
• 6:14
  Speaker 2: Right now, be man, Jeweliper's endorsement portfolio looks pretty carefully.
• 6:17
  Speaker 1: Crafted, Puma versace YSL clearly all.
• 6:21
  Speaker 2: Those carefully chosen partnerships with carefully chosen commercial arrangements.
• 6:24
  Speaker 1: Now, when Samsung puts her face on a TV box
• 6:27
  Speaker 1: without asking, it might muddy that carefully built image a
• 6:30
  Speaker 1: little bit.
• 6:30
  Speaker 2: You see, be Man, The whole power of Jeweliper's endorsement
• 6:33
  Speaker 2: is scarcity.
• 6:34
  Speaker 1: So the moment Samsung gets away with putting her face
• 6:36
  Speaker 1: on TV boxes, other brands feel like they could put
• 6:38
  Speaker 1: her face on. Cereal boxes are canned beans, and boom.
• 6:42
  Speaker 2: That scarcity that she's got is gone. Plus, there are
• 6:45
  Speaker 2: lots of changes in this is federal budget and we
• 6:47
  Speaker 2: have them all covered in the Flux app. So if
• 6:49
  Speaker 2: you want to learn more about how the federal budget
• 6:51
  Speaker 2: impacts you, make sure to download the Flux app and
• 6:53
  Speaker 2: check it out.
• 6:53
  Speaker 1: Thanks for listening, and we'll see you on Friday.