Latest / What the Flux / RBA cuts rates with a warning | Monash IVF's costly mistake | Sesame Street finds a new home

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RBA cuts rates with a warning | Monash IVF's costly mistake | Sesame Street finds a new home · What the Flux

• 0:05
  Speaker 1: This is what the flux. I'm Brett and I'm just then,
• 0:07
  Speaker 1: and it's Wednesday, the twenty first of a Juzzy Boy.
• 0:09
  Speaker 1: The Reserve Bank of Australia sat down yesterday and chose
• 0:13
  Speaker 1: peace with the Australian public with another cash rate cut.
• 0:16
  Speaker 1: But interestingly, after the last cash rate cut, COMBAK only
• 0:19
  Speaker 1: saw fourteen percent of its customers reduce their direct debit payments. Interesting,
• 0:23
  Speaker 1: so it'll be interesting to see if after this rate cut,
• 0:26
  Speaker 1: Ozzie's take some cash off the table.
• 0:28
  Speaker 2: And flux am. We have the cash rate cut all
• 0:31
  Speaker 2: covered in the plot today, but also in the Flux
• 0:33
  Speaker 2: app we have a what this cash rate looks like,
• 0:35
  Speaker 2: what the impact on the housing market might be, and
• 0:38
  Speaker 2: especially when you overlay it with the five percent home
• 0:41
  Speaker 2: ownership scheme that the government's rolling out. Make sure to
• 0:43
  Speaker 2: check out the Flux app if you want to understand
• 0:45
  Speaker 2: more about the changing face of the property market.
• 0:47
  Speaker 1: Three enticing stories today, Juzzy Boy, let's do it for
• 0:50
  Speaker 1: our first. The RBA has cut the cash rate by
• 0:53
  Speaker 1: zero point two five percent to three point eight five percent,
• 0:57
  Speaker 1: but warns that Trump's tantrums could still shape the Australian economy.
• 1:01
  Speaker 2: The cash rates Sea Cael that we've all been waiting for.
• 1:03
  Speaker 2: B Man, so tell me more.
• 1:04
  Speaker 1: Well, as we've spoken about many times on the Pod,
• 1:06
  Speaker 1: the RBA is Australia's central Bank.
• 1:08
  Speaker 2: Yeah, it sets the official cash rate to try and
• 1:10
  Speaker 2: manage inflation as well as driving economic activity and jazzy boy.
• 1:14
  Speaker 1: After a pause in April, analysts were very bullish on
• 1:17
  Speaker 1: a rate cut yep.
• 1:18
  Speaker 2: Some were even predicting a jumbo cut of point five percent,
• 1:21
  Speaker 2: looking at you, Nab.
• 1:22
  Speaker 1: But now the RBA came so and conquered with a
• 1:26
  Speaker 1: cash rate cut of the non jumbo amount of point
• 1:29
  Speaker 1: two five percent.
• 1:29
  Speaker 2: And that takes us to a cash rate of now
• 1:31
  Speaker 2: three point eight five percent.
• 1:33
  Speaker 1: And that's the lowest cash rate we've had in over
• 1:35
  Speaker 1: two years.
• 1:35
  Speaker 2: But be man. Despite for the inflation, the RBA is
• 1:38
  Speaker 2: still side eyeing the global economy. Yep.
• 1:40
  Speaker 1: They want that. They still don't know how the US
• 1:42
  Speaker 1: is on again off again tariffs will impact the Australian
• 1:46
  Speaker 1: economy and locally, the RBA is still concerned with a
• 1:48
  Speaker 1: low unemployment rate.
• 1:49
  Speaker 2: And not to forget, Australia's productivity rate has been flatlining,
• 1:53
  Speaker 2: which is not a good sign for a growing economy interesting.
• 1:56
  Speaker 1: So what is the key learning here, Well.
• 1:57
  Speaker 2: Nobody really talks about productivity. The ARBA is pretty much obsessed.
• 2:01
  Speaker 1: With it because low productivity is a key driver of
• 2:04
  Speaker 1: higher inflation.
• 2:05
  Speaker 2: In simple terms, be man, productivity is how much stuff
• 2:07
  Speaker 2: we produce per hour of work.
• 2:09
  Speaker 1: When the productivity rate of the economy increases, it means
• 2:12
  Speaker 1: businesses can afford to give staff pay rises without jacking
• 2:16
  Speaker 1: up prices of their goods and services.
• 2:18
  Speaker 2: But when the productivity is flat or goes down, then
• 2:21
  Speaker 2: businesses can only afford to give pay rises by increasing
• 2:24
  Speaker 2: prices of their products or services.
• 2:26
  Speaker 1: And increased prices leads to growing inflation.
• 2:29
  Speaker 2: A big no no in the RBA's eyes.
• 2:31
  Speaker 1: And while inflation has slowed down, productivity in Australia has
• 2:34
  Speaker 1: barely moved in the last five years.
• 2:37
  Speaker 2: In fact, being man, in twenty twenty three it actually
• 2:39
  Speaker 2: fell by three point seven percent. And that is why
• 2:42
  Speaker 2: the RBA is not getting too.
• 2:43
  Speaker 1: Loose with this is just yet, because not all indicators
• 2:46
  Speaker 1: are looking rosy right now.
• 2:48
  Speaker 2: For our second story, monash IVF has warned of an
• 2:51
  Speaker 2: ugly update to its profit guidance after an embryo mix
• 2:55
  Speaker 2: up has caused a share price to plummet.
• 2:57
  Speaker 1: Clients are taking their baby business lawe. What is the
• 3:00
  Speaker 1: story here case.
• 3:01
  Speaker 2: Monach IVF is the ASX listed group that specializes in
• 3:04
  Speaker 2: fertility services in Australia. They do everything from IVF to
• 3:07
  Speaker 2: egg freezing, to genetic testing and a whole lot more.
• 3:10
  Speaker 2: But Judge Boy earlier this year, monash IVF found that
• 3:14
  Speaker 2: they had mixed up two clients' embryos, but they only
• 3:17
  Speaker 2: found out two years after the fact and after a
• 3:20
  Speaker 2: baby had been delivered.
• 3:21
  Speaker 1: Monash iviev reported this as at once off human error
• 3:24
  Speaker 1: that would not materially impact the company's profit, but.
• 3:27
  Speaker 2: When the news got out, clients and investors were shugn.
• 3:30
  Speaker 1: Next minute, monash Ivf's share price dropped thirty four percent.
• 3:34
  Speaker 2: And now monash IVF warned that their profits are also
• 3:37
  Speaker 2: expected to drop by more than eleven percent to twenty
• 3:39
  Speaker 2: seven and a half million dollars.
• 3:41
  Speaker 1: Next minute, their shares dropped another twelve percent.
• 3:44
  Speaker 2: So what is the key learning here?
• 3:46
  Speaker 1: Publicly listed companies have an obligation to disclose any information
• 3:49
  Speaker 1: that might have a material effect on their share price.
• 3:52
  Speaker 2: And material news could be things like changes to a
• 3:55
  Speaker 2: company structure, changes to senior management, or major cybersecurity breaches.
• 3:59
  Speaker 1: Now. In this case, monash IVF discovered the embryo mix
• 4:02
  Speaker 1: up in mid February.
• 4:03
  Speaker 2: But they didn't mention it in their half yearly results,
• 4:06
  Speaker 2: which happened two weeks later.
• 4:07
  Speaker 1: Fast forward to April, the board finally reported the embryo
• 4:10
  Speaker 1: mix up and they reported that it was not material,
• 4:12
  Speaker 1: but they.
• 4:12
  Speaker 2: Dropping their share price and profit guiden since the news
• 4:15
  Speaker 2: broke shows otherwise.
• 4:17
  Speaker 1: Which begs the question about what company information is actually
• 4:20
  Speaker 1: considered quote material.
• 4:22
  Speaker 2: For a company like monash IVF that relies heavily on
• 4:25
  Speaker 2: brand reputation and client trust, a single mistake can have
• 4:29
  Speaker 2: huge consequences.
• 4:30
  Speaker 1: And regardless of what they believed is material, the market
• 4:33
  Speaker 1: had the final say.
• 4:35
  Speaker 2: For our third and final story, Netflix has signed a
• 4:37
  Speaker 2: deal with Sesame Workshop to make Netflix the streamy home
• 4:41
  Speaker 2: of Sesame Street.
• 4:42
  Speaker 1: Elmo is officially packing his bags and heading to the
• 4:45
  Speaker 1: Big Red n Tell me more.
• 4:48
  Speaker 2: Okay, So, Sesame Street is produced by Sesame Workshop, which
• 4:51
  Speaker 2: is a non profit organization.
• 4:52
  Speaker 1: YEP. Sesame Street has been using puppets to teach kids
• 4:55
  Speaker 1: their ABC's and one two three's and occasional life lessons
• 4:58
  Speaker 1: from a two meter tall yellow bird.
• 5:02
  Speaker 2: In fact, a man. Sesame Street is now shown in
• 5:04
  Speaker 2: more than one hundred and fifty countries and breaches more
• 5:06
  Speaker 2: than one hundred and fifty six million kids. So jusey.
• 5:09
  Speaker 1: Way back in twenty nineteen, Sesame Street started streaming on
• 5:13
  Speaker 1: the streaming platform Max Akahbo Max aka Water Brothers Discovery,
• 5:18
  Speaker 1: but Ben Man.
• 5:18
  Speaker 2: Last year, Water Brothers Discovery decided not to renew the deal.
• 5:22
  Speaker 1: And for a moment it looked like Cookie Monster might
• 5:24
  Speaker 1: need to sell his last biscuit. Now b Man, Netflix
• 5:28
  Speaker 1: has swooped in, and that means Netflix will stream the
• 5:31
  Speaker 1: upcoming fifty sixth season of Sesame Street, as well as
• 5:34
  Speaker 1: the library of its classic episodes and Cookie Monster Cookies.
• 5:38
  Speaker 2: And be Man. This is all part of Netflix's strategy
• 5:41
  Speaker 2: to own children's content.
• 5:42
  Speaker 1: So what is the Cookie Monster learning here? Judy Boy.
• 5:45
  Speaker 2: As families move away from PayTV, streaming platforms are in
• 5:48
  Speaker 2: a tug of war for toddler attention, and that's because
• 5:51
  Speaker 2: not only does kids content perform well, but it keeps subscribers.
• 5:54
  Speaker 2: Paint Get This Kids series, Cocoa Melon and Pepper Pig
• 5:57
  Speaker 2: some of the most stream shows of twenty twenty five
• 6:00
  Speaker 2: on Netflix.
• 6:01
  Speaker 1: Even ahead of dare I say it Young Shelded, not Young.
• 6:04
  Speaker 2: Sheldon and be Man. Streaming platforms love kids content because
• 6:08
  Speaker 2: it's one of the greatest drivers of subscriber to retention yeap.
• 6:11
  Speaker 1: Parents are pretty much willing to pay for anything that
• 6:14
  Speaker 1: will avoid a nagging kid.
• 6:15
  Speaker 2: And be Man. This eight Netflix's first foray into the
• 6:18
  Speaker 2: kid's content world.
• 6:19
  Speaker 1: It already holds the streaming rights to Miss Rachel and
• 6:22
  Speaker 1: Coco Melon and Judge Boy as you know, it has
• 6:24
  Speaker 1: the rights to Pepper, Pig and Back.
• 6:25
  Speaker 2: In twenty twenty one, it also bought the Golden Ticket
• 6:27
  Speaker 2: to acquire Roll Dal rights for six hundred and eighty
• 6:30
  Speaker 2: six million US dollars.
• 6:31
  Speaker 1: So by snapping up Sesame Street, Netflix is locking in
• 6:34
  Speaker 1: the kind of content that keeps family subscribed month after month.
• 6:38
  Speaker 2: Because if you control the shows that stop tantrums, you
• 6:41
  Speaker 2: control the household. Fux Sam, did you know for every
• 6:43
  Speaker 2: one percent cashtraight cut, the average Australian house increases in
• 6:47
  Speaker 2: value by nineteen percent. We cover all of that and
• 6:49
  Speaker 2: a whole lot more. Make sure to download the Flux
• 6:52
  Speaker 2: app and check it out.
• 6:53
  Speaker 1: Thanks for listening, and we'll see you on Friday.