Latest / The Curve / Why Google’s New Chips Have Everyone Freaking Out.

Transcript

Why Google’s New Chips Have Everyone Freaking Out. · The Curve

• 0:00
  Welcome to the Curve Weekly, where we read the finance news so that you don't have to.
• 0:05
  I'm Vic Harris, a finance professional, and I've made a career out of making money
• 0:08
  for other people.
• 0:09
  And I'm Sophie Horreit, ex-TV radio producer, who was really sick and tired of not knowing
• 0:13
  how to invest.
• 0:14
  So we turn our chats into this podcast.
• 0:16
  In today's episode, Google has really stepped up in the AI space and is giving another AI
• 0:23
  company a bit of a run for its money.
• 0:24
  Taking a break from Tepp, which we don't often do on this podcast, there is a business
• 0:28
  that is not a tech company that is now worth a trillion dollars.
• 0:32
  There's only one other business that is publicly listed and not a tech business.
• 0:37
  It's in kind of a controversial space, so we dig into that and what is happening there.
• 0:41
  We talk about some big news that's happened in the UK this week, which is the budget.
• 0:45
  Before you tune out, I think, oh, I don't really care about the budget and also this is
• 0:48
  in the UK and maybe you're based somewhere else in the world.
• 0:50
  We talk about how to understand budgets in general and how they impact you, your investments,
• 0:56
  your wallet.
• 0:57
  It's really important.
• 0:58
  So, stick around for that.
• 0:59
  But before we get into it, I have a bone to pick with my boyfriend.
• 1:02
  It's a good one.
• 1:09
  So we've just been having a conversation off Mike, which we've decided to bring on Mike.
• 1:15
  Sorry, flower man.
• 1:18
  We love you, flower man.
• 1:19
  However, we do have a bone to pick with you.
• 1:23
  Flower man.
• 1:24
  Oh, God.
• 1:25
  Sorry.
• 1:26
  Who we love, who did the most gorgeous birthday lunch for her in the weekend, had made menus
• 1:33
  that said fix liquidity lunch.
• 1:35
  She was so stoked on that.
• 1:36
  I was going to call it like, fix portfolio meal or something like that, so I can't
• 1:40
  police.
• 1:41
  He loves a pun.
• 1:42
  He's very creative.
• 1:43
  He's very loving.
• 1:44
  He's an amazing boyfriend.
• 1:45
  We love him.
• 1:46
  But we have something that we really need to bring to the table because I think there's
• 1:50
  a lot of couples that probably have a bit of a disagreement around similar things.
• 1:56
  So do you want to just take the floor and explain what's going on?
• 1:59
  We just have very differing locations of places we like to eat.
• 2:03
  So flower man is heading back to New Zealand and he's having a few drinks this weekend.
• 2:10
  Have you a few friends to say goodbye and he's going to a pub and I was like, I'll call
• 2:14
  what pub.
• 2:15
  So I'll come along and he mentioned the pub and it is the most horrific, like I've vocalized
• 2:22
  this to him many times.
• 2:23
  He could not pick a worst pub in London or something.
• 2:26
  It is.
• 2:27
  I would say it's up there with like one of the worst I walked back to every day.
• 2:30
  It is disgusting.
• 2:31
  Like, it's had scaffolding up there from like 1994, it's got like plastic cups, it is
• 2:38
  sticky tables.
• 2:39
  Look, we're all here for going to different places, right?
• 2:43
  Like, totally.
• 2:44
  And also, I think it's very important to point out that you're quite happy doing low
• 2:48
  key things that don't cost lots of money, you know, like whether it's a picnic or something
• 2:52
  else.
• 2:53
  You can look, a coffee or anything, however, this is a real point of contention in their
• 2:58
  relationship because he's like, well, I've got a nice place with you.
• 3:02
  Yeah.
• 3:03
  And he does.
• 3:04
  And that's great, but I'm like, poor you.
• 3:05
  Yeah, I have to go to those places.
• 3:06
  Yeah.
• 3:07
  Oh, no, he's got to go to a nice Italian restaurant awful.
• 3:11
  I feel so sorry for you.
• 3:13
  No, but it is like I would rather have his friends over at our house and I'll cook them
• 3:19
  dinner.
• 3:20
  We're in a nice warm, cozy, non-disgusting place.
• 3:26
  And also, what about the, I think it's funny piece because I think that's quite a crucial
• 3:30
  element in here.
• 3:31
  Like he thinks it's ironically shit, right?
• 3:33
  Yeah.
• 3:34
  Yeah.
• 3:35
  And like him making me go, is that?
• 3:36
  So I think I need reverse psychology and just be like, oh my god, I'd love that pub.
• 3:42
  Yeah.
• 3:43
  Let's go.
• 3:44
  Oh my god, can we go early?
• 3:45
  Be like, let's all take our pants off and sit on the seats without pants on.
• 3:47
  Oh my god, should we lick the tables?
• 3:50
  I reckon he's fully doing it to wind you up and you need to find a way to like just push
• 3:56
  through it.
• 3:57
  So then it comes to his leaving drinks.
• 3:58
  He's like, where should I go for them?
• 4:00
  Yeah.
• 4:01
  You're like, perfect.
• 4:02
  I'll book something on my list.
• 4:03
  Yeah.
• 4:04
  But it happens a lot.
• 4:05
  Yeah.
• 4:06
  Yeah.
• 4:07
  Like there's, and I just, I don't know.
• 4:08
  I need some help.
• 4:09
  We need help.
• 4:10
  We need to hear from anyone who's in a dynamic with their partner where it comes to spending
• 4:17
  time and all money, you're quite misaligned.
• 4:20
  How do you deal with that?
• 4:21
  Yeah.
• 4:22
  Because you don't want him to be angry or mad or bescrup the gruntled to go to some restaurant
• 4:28
  that you've picked.
• 4:29
  And you know, you want him to be excited.
• 4:31
  You don't want it to be like, I went there so now you should come with me term.
• 4:34
  But it's also down to like what you do, right?
• 4:36
  Like if you had like an entertainment budget once a month and it's like they wanted
• 4:41
  to go to a rugby game and you wanted to go to a restaurant.
• 4:43
  I don't know.
• 4:44
  You get, you get your choice this month and then my choice next month for, I don't
• 4:48
  know.
• 4:49
  I don't know.
• 4:50
  I actually think that's quite a good idea though.
• 4:51
  Like maybe you just need to alternate, maybe it's just, oh, but then it's really hard
• 4:55
  because then if you're alternating between a pub like this, yeah, I just, I just want
• 4:59
  a great way to spend a Friday night is it?
• 5:01
  I just want him to change.
• 5:02
  Oh no.
• 5:03
  Everything else about him is absolutely amazing.
• 5:06
  Yeah, we love you.
• 5:07
  We love you.
• 5:08
  We love you.
• 5:09
  We love you.
• 5:10
  But what I would say is when you're in the dating stages and if you're like going to a pub
• 5:15
  and it's like a random show, you're kind of like, it's fine, it's fine.
• 5:17
  I'll have a Guinness.
• 5:18
  Yeah.
• 5:19
  Actually, to be fair, I'm excited.
• 5:20
  I know, like Guinness.
• 5:21
  I went for a run the other day.
• 5:22
  Oh yeah.
• 5:23
  Cause the guy I'm seeing went for a run tour.
• 5:25
  I went for a run tour.
• 5:26
  I was like, oh my god, girl.
• 5:27
  And she was like, I'm so, so I can't breathe.
• 5:30
  I can't breathe.
• 5:31
  Oh my god.
• 5:32
  I think because of my run, my choice is like, like all lunch, I was like, can I get it?
• 5:36
  You went for a run with the boy you're seeing.
• 5:38
  No, no, no, no.
• 5:39
  I need people in context there.
• 5:40
  Actually, no, I can't.
• 5:41
  Cause this is a financial podcast and we don't have time.
• 5:43
  But my point is, is when you're in the initial stages of dating somebody, you know, you're
• 5:49
  figuring that stuff out.
• 5:50
  Right?
• 5:51
  You're like, yeah, sure.
• 5:52
  I'll go for a Saturday morning round, which I will just say I was very proud of myself.
• 5:56
  And if you're looking to increase your personal best, do it in front of someone you're
• 5:59
  trying to impress because holy shit, I ran fast.
• 6:02
  But second to that is that you're in a long-term relationship.
• 6:06
  And this is coming up time and time again, where it's actually kind of annoying to have
• 6:11
  different times or places, sorry, having different places you want to spend time or money.
• 6:15
  Yes.
• 6:16
  There must be other people that are there and they must have ways of working around it where
• 6:21
  it's like, yeah, maybe the entertainment budget is whatever each month that you're doing.
• 6:26
  And maybe it's like, you plan a date night, they plan it.
• 6:28
  I don't know.
• 6:29
  But if anyone has any helpful relationship advice, please help.
• 6:33
  Yes.
• 6:34
  So anyway, yes.
• 6:35
  Speaking about chips, chips, chips, chips, chips, not deep fried, not yummy crisps, we are
• 6:40
  talking about tiny, tiny, tiny AI chips.
• 6:43
  Yeah, AI chips.
• 6:44
  I think so if Google might be my new Microsoft.
• 6:46
  Oh, my gosh.
• 6:47
  I know.
• 6:48
  This is a moment.
• 6:49
  So for anyone that's missed or not listened to the care of podcasts for a very, very long
• 6:53
  time, I would say that is an unhealthy relationship with Microsoft.
• 6:57
  For stock.
• 6:58
  Yeah.
• 6:59
  Low-key obsessed.
• 7:00
  Always talking about it.
• 7:01
  Just thinks that it is the best long-term tech investment.
• 7:04
  A chunk of chips.
• 7:05
  A chunk of chips.
• 7:06
  Yeah.
• 7:07
  Oh, maybe I've got a second love.
• 7:08
  You can just drop it down to number two.
• 7:10
  Microsoft's allowed to still be up there, right?
• 7:12
  Yeah.
• 7:13
  No.
• 7:14
  Are you fully gone off like this?
• 7:15
  No.
• 7:16
  No.
• 7:17
  Still love it.
• 7:18
  Anyway, Google has just shaken up the AI world.
• 7:22
  So this week, it actually, let's go back, let's go back further.
• 7:26
  So like six months ago, Google was almost like criticized for being.
• 7:31
  Not a front runner in AI.
• 7:34
  Like everyone was like, what the FU up to?
• 7:36
  Like, it felt a bit lost that we had chat GPT dominating.
• 7:41
  It had Google search, everyone was like, oh, Google search is going like to zero.
• 7:45
  You know, everyone's getting his chat GPT and the Gemini pops up and you're kind of
• 7:49
  like, oh, Gemini.
• 7:50
  Yeah.
• 7:51
  Because you sort of, oh, I've got chat GPT.
• 7:52
  Fuck off Gemini.
• 7:53
  Why are you trying to like predict what I'm doing, you know?
• 7:55
  Yeah.
• 7:56
  Like a set of pop-up and I'm like, cute.
• 7:57
  You're trying.
• 7:58
  Oh.
• 7:59
  Yeah.
• 8:01
  You remember Bing?
• 8:02
  Yes.
• 8:03
  And all you're trying to do is get to Google and Bing's trying to like, yeah, who?
• 8:06
  You're like, oh, wait, like no one's using Yahoo.
• 8:09
  Yeah, yeah.
• 8:10
  What the hell has happened to Bing?
• 8:11
  Yeah.
• 8:12
  Bing.
• 8:13
  Oh my god.
• 8:14
  Even the name, I just cannot.
• 8:15
  It's like, so do you give up when you're like one percent market share and this other player
• 8:19
  has got like 99%.
• 8:20
  Hold on for dear life.
• 8:21
  Like the cliff, you're about to fall off.
• 8:23
  Imagine being in the Bing team.
• 8:24
  You're like, right.
• 8:25
  So we're going to do this.
• 8:26
  And this new feature, we're going to roll out.
• 8:28
  And it's like, don't try.
• 8:30
  Just give it up.
• 8:31
  All right.
• 8:32
  Let's all go and have a long lunch.
• 8:34
  Anyway, and there was also, there's been a lot of talk about breaking up search ads, maps,
• 8:39
  Gmail, you know, all of that stuff.
• 8:41
  This is Google at all.
• 8:42
  Yes.
• 8:43
  We're talking about Google.
• 8:44
  Yeah.
• 8:45
  It was all those talks about it being broken up and different, you know, what is it going
• 8:47
  to become?
• 8:48
  Those have kind of like died away.
• 8:49
  And in the background, it's obviously been still working on AI.
• 8:52
  And then last week, it released, even I3, which kind of shocked everyone and blew
• 8:58
  the lights out like of how good it is.
• 9:00
  People are like, oh my goodness, this is going to actually give ChatGPT a run for its
• 9:04
  money.
• 9:05
  A lot of people who work at Google that we know and we speak to love Gemini, and a lot
• 9:09
  of people I've heard recently start talking about when we're talking about what AI products
• 9:14
  do you use?
• 9:15
  People are saying Gemini.
• 9:16
  And I've been a bit like, oh, interesting.
• 9:18
  Gemini.
• 9:19
  If it kind of comes like a tipping point, right?
• 9:21
  Or maybe I'll just give it a little go.
• 9:23
  Yeah.
• 9:24
  It's almost like marketing.
• 9:25
  You know, hit with five different ads.
• 9:27
  It's not to all the tent that you consider maybe buying those random jelly beans that help
• 9:31
  you focus more, you know?
• 9:32
  Yeah.
• 9:33
  And the key thing with Gemini 3 was it was trained entirely on Google's own Chips, not
• 9:39
  Navidias.
• 9:40
  So this is what everyone goes, this is why we're jumping chip on the chips.
• 9:46
  Everyone's like, what we thought Navidias chips were the best, and if you're going to produce
• 9:50
  a best in class AI software like Gemini, shouldn't that be powered on the best chips?
• 9:56
  But now you've got something as better than chaps, you have to eat anora chips that
• 9:59
  are better and everyone's like, oh gosh.
• 10:01
  Change in the game with the big time.
• 10:03
  And it's Google, right?
• 10:04
  It's like, they know what they're doing.
• 10:06
  It's not just some newcomers.
• 10:08
  When we had Deepseek and everyone was like, oh my gosh they chips are better, but who
• 10:11
  are they, where did they come from?
• 10:13
  So if anyone missed that, there was this thing that happened where because Navidias
• 10:17
  the biggest AI company really in the world or it has been. There was this other business
• 10:22
  that came out called Deepseek and everyone, all of a sudden thought, oh Deepseek chips
• 10:26
  might be actually better than video anyway. They were like four times more powerful and like,
• 10:30
  anyway, it was a classic moment of, oh, maybe at this point Nvidia is going to fall off a cliff
• 10:35
  and this new business is going to do better but then all this other stuff happened and it ended
• 10:39
  up not being a big deal. In Nvidia's share prices, share prices fall but it rebounded massively.
• 10:44
  We've had so many companies like OpenAI in particular come out and put in these incredible
• 10:50
  contracts to get access to Nvidia's chips because they're the best in the class and they want
• 10:55
  to secure the demand and like all of this and then meanwhile, we've just got Google over here
• 11:00
  doing its thing with its own chips and then boom, here's Gemini 3. So everyone's like, oh wow,
• 11:06
  what does that mean for Nvidia? Not necessarily AI in general because it means like, oh gosh,
• 11:10
  we've now got a really strong number two or even number one. But for a consumer, it's great
• 11:16
  to have options. I feel really good about the fact that it's starting to diversify. If anything,
• 11:21
  it makes me feel like AI is going to start feeling less precarious because there's other options.
• 11:28
  Like right now, AI is leading the world when it comes to innovation, when it comes to money and
• 11:34
  is like the biggest, strongest, most enormous companies in the world. But because there's so few of
• 11:40
  them and they are kind of propping up the entire stock market, that's I think where it is a bit
• 11:46
  scary if you have other really strong players. Could be a really good thing. It's diversified
• 11:53
  within the stock market in terms of big powerful companies. Totally and it's like there's not,
• 11:58
  there's not as much wealth or expectations or dependency on one company, which that to me
• 12:07
  is scary because it's like, okay, worth Nvidia doesn't. Deliver or doesn't perform where there's a
• 12:12
  hiccup or like, I don't know, has some issues with its chips. All of these other companies are
• 12:17
  impacted. Whereas when you kind of, yeah, with anything, when you share the low and you diversify,
• 12:21
  you spread the risk, right? So it's great for consumers. I guess great for investors, but maybe not
• 12:27
  in the short term because a lot of investors are in Nvidia, but its share price fell has fallen
• 12:31
  about 8%, which is quite big for Nvidia. And they were having a few questions about are we
• 12:37
  backing the wrong horse? Are we backing both horses? Yeah, there's also reports that Google is starting
• 12:43
  to pitch like, meta and be like, hey, look, we've actually got these chips. They're actually better
• 12:47
  than the videos. Wow. Starting to, I guess, steal a bit of the demand. There was no one else you could
• 12:52
  go to but Nvidia. So they went there, whereas now you've got this very strong competitor.
• 12:56
  And Nvidia actually came out and congratulated Google and was like,
• 12:59
  cool, that's really cool. Yeah, they were like, this is great, but we're still a generation
• 13:03
  ahead of Google. Oh, well done over there. We're still way way more advanced than you, but good job.
• 13:10
  Nice work. You're trying. You don't want to piss off Google.
• 13:13
  And Google's chips are way cheaper. But I mean, we saw this with DeepSeek, will it
• 13:17
  eventually into something or will it just be a little blip in a buying opportunity if you want to buy
• 13:21
  a new shell like it might. Yeah. If you haven't listened to our episode, but I'm
• 13:25
  Nat from Google, she's the chief technologist there and she's amazing. She's so cool.
• 13:29
  Yeah. Just a really interesting conversation. And I think the more that you understand about
• 13:34
  what's happening in a business, the more confident you can feel whether or not you want to invest
• 13:38
  in it, right? Yeah. And speaking to her and hearing her talkers, I mean, when we spoke to her,
• 13:42
  even not on the podcast and she was just so confident in what's happening at Google. She feels a
• 13:46
  generation ahead. Yeah. You know, I'm like, what's happening in the future of there, totally.
• 13:53
  But also, we spoke about this last week, is it Warren Buffett has invested in Google all just
• 13:58
  before this. So last week, we spoke about how Warren Buffett never, ever has invested in technology
• 14:03
  companies and he has invested $5 billion in Google. And it was like quite wild because not only
• 14:10
  is he leaving his investment company, he's not a fan, anyone that doesn't know, but you from like
• 14:15
  decades, he, yeah, is doing his first four oriented tech companies and he's investing Google
• 14:22
  where the, where it's share prices now, which is like up nearly 60% this year, which is just
• 14:26
  quite weird. So either he's had a little, I reckon he's, I reckon he's got some
• 14:30
  insider trading happening. Yeah. I think there's something fishy going on. Imagine if it came out
• 14:36
  that the world's best investor, the grandfather of investing was dodgy. This next story is not
• 14:42
  tech based, but is actually doing really well. I feel like we've spoken so much about tech and
• 14:46
  it's been like dominating stock market performance, headlines that you kind of forget these other
• 14:52
  companies sometimes that are actually doing really, really well. And we've got our second
• 14:57
  non-tech brilliant dollar company on the US Stock Exchange. And the first one was Birkshade
• 15:02
  Hathaway, which is Warren Buffett's investment company. And so there was a big song in dance being
• 15:06
  like the first non-tech company to be a trillion dollars. And now we've got our second. And the
• 15:11
  company is Eli Lilly. I love the name Eli Lilly. Yeah. The first time in a very long time,
• 15:17
  we're talking about a business that doesn't sound like it was Birkshade Hathaway. And
• 15:20
  no, I actually quite like Birkshade Hathaway, but like in video, deep seat, like they're all just,
• 15:27
  like there's some very weird names we talk about. Eli Lilly, like cute. Yeah. It sounds like
• 15:32
  brother and sister. Yeah. Eli Lilly. Okay. So, yes. Eli Lilly. Yes. Is a massive company
• 15:41
  on the Stock Exchange. Yes. It's a pharmaceutical company. And it is the second non-tech company to
• 15:48
  hit a trillion dollar market cap. And the reason it's done that is because of its two blockbuster weight
• 15:55
  loss drugs, which is monjaro and set bound. So, they have reduced these drugs, which used the
• 16:02
  GLP1 protein, which increases insulin, slows to gestion and suppresses appetite. Now, a lot of
• 16:08
  these drugs have got into the mainstream, particularly into the celebrity sphere. And people have been
• 16:16
  using them not for their actual intended purpose, which is mainly for diabetes and reduced obesity.
• 16:21
  And we've had Novo Nordis, which had ozempic, which is kind of like the poster or the very well-known
• 16:27
  GLP1 product. Anyway, they were doing fantastic. And everyone thought this was going to be
• 16:31
  absolutely game-changing. And it has been. But the thing when you're the leader in something so new
• 16:37
  like this is that it's great. And you can pave the way. You make mistakes. You continue to do
• 16:42
  well. You innovate whatever. But then the second comma doesn't make those mistakes. And so they
• 16:47
  just kind of like blast through in terms of like looking at what you've done. And maybe do it
• 16:52
  slightly better. And this is what they've done is like made products with less side effects,
• 16:56
  easier to do, just like that kind of thing. So they've made products that are now superior
• 17:02
  than the first front runner, which is Novo Nordis. It's so interesting in this kind of scenario,
• 17:06
  because a lot of the time people that are that far ahead, like the biggest advantage you have
• 17:11
  is being first. So you're already ahead in terms of you've made those mistakes and you're onto
• 17:16
  the next thing. You're not innovating fast enough. That's when someone else comes up behind you,
• 17:21
  right? Because it's like something like an Uber. There's a lot of competition. But Uber's still
• 17:25
  pretty dominant. And it's the same, you know, Nike, for example, like there's lots of brands that
• 17:31
  come out of the gates with something. And the reason that they stay on top is because they're constantly
• 17:37
  like innovating and reinvesting and growing and growing and growing. As soon as you like slow,
• 17:42
  someone like an Eli Lilly can quickly like be chomping on your heels. Yeah. And that's what we
• 17:46
  kind of were just talking about in the video, right? Like is this, NVIDIA just got a bit complacent
• 17:51
  and Google's now the second runner that's going to be the front runner or, or is it the kick up
• 17:58
  the bun that, bum that NVIDIA needed to stay innovating? I don't know, like Lulu Lemons,
• 18:03
  probably a classic example of just like kind of was the leader and then they're behind. And
• 18:08
  then people at Lulu Lemons probably like, we innovate, but like, you know, you have to be
• 18:12
  seriously innovating to stay at the top. Like Nike's R&D, like research and development budget,
• 18:17
  and what they spend on constantly innovating is massive compared to smaller players. And obviously
• 18:23
  when you're bigger, it can be, but you just, you just can't rest on your laurels.
• 18:27
  The rules laurels, mother. What are, what are laurels? I think you're asked your bottom. Oh, wow.
• 18:35
  Sorry. Can we? Okay. Sorry, our producer just told us. We're just passing the mic.
• 18:39
  Yeah, we're, what, what does resting on your laurels mean?
• 18:41
  Basically in Greek times when they were doing the Olympics way back when in, oh, you already
• 18:47
  ancient times. They would give winners a crown made of like laurel leaves. And so the saying is,
• 18:55
  don't rest on your laurel. So don't rest on the fact that you won from last year and you've
• 19:00
  still got your laurel crown. Carry on innovating. Be better this year. I always thought your laurels
• 19:07
  was your butt. Yeah. I mean, that makes me sick. Your laurels. Like, don't rest. Don't be lazy
• 19:11
  and rest on your big cheeks. That's what I thought it was. So if it's like, at the power,
• 19:16
  you've got a great laurel. I want to see. Just like you always think that resting on your
• 19:20
  own. I never even thought it could be. Yeah. Well, why I wanted to say on this is when you are in,
• 19:26
  I love learning new things. So do I. Yeah. Fun facts. I feel like my brain just goes, yeah,
• 19:30
  yeah, yeah. I was going to say on that story as someone who never thought they would be in
• 19:36
  business or never really thought about business as something that would be something I would do.
• 19:40
  I had this perception that you can work really, really hard, get yourself to a place and then
• 19:46
  you can kind of be like, oh, I can relax now. I now realize it doesn't matter how successful
• 19:53
  of businesses in terms of how much market share they have. The really, really good ones are
• 19:58
  always stressed about being taken over by a competitor. They never feel like we've made it we can
• 20:03
  relax either because at any point in time, an elaylilia could be coming up and totally shuddle
• 20:09
  over their entire business. And when you're at the top, there's only one way to go, right?
• 20:13
  I totally hear you and like, that's been driven by the fact that investors want profit growth
• 20:18
  and that means you have to grow year on year on year on year no matter what, right? Even if you're
• 20:22
  at the top, we don't want profits to just go flat just because you're at the top now. Like,
• 20:26
  we want more, more, more. It's had this whole like, I'm investing in you. I'm taking a risk
• 20:29
  before I want to be compensated. So keep growing, keep returning money to me, like all of that.
• 20:34
  Yeah, it's like, but it's also not just businesses that have investors. This is my point. Like
• 20:38
  it's business in general. Sorry, yeah, yeah. Because it's, yes, there's people that you have to return,
• 20:44
  you know, investment to if you have gotten investors. But even if you're just a business that
• 20:49
  bootstrapped or like, you know, you just put your own money in and have grown in. And that's why
• 20:53
  so many people you see all those business books and quotes and stuff and people like, you got to
• 20:57
  enjoy the process. Otherwise, because there kind of isn't almost really an destination, because
• 21:02
  you're constantly having to continue. But I do think that it's just something that people assume.
• 21:08
  I totally did. I just assume all these people that look externally successful because they've
• 21:12
  had a successful business wouldn't be so stressed about what's going on. But actually, they're
• 21:17
  probably even more stressed. Well, you've got more stuff. You've got more products. You've got
• 21:21
  more markets. You've got more. Yeah, it's probably. Yeah. But yes, I think with this, what I really
• 21:26
  like is there is there's other sectors doing well in the stock market, you know, like it's not
• 21:32
  all just tech. And like that is really, really great to see that people are diversifying. You can make
• 21:38
  money in other sectors that aren't tech like all of that. And you probably should be making money
• 21:42
  in other areas that aren't tech because that is exactly what you talk about from being
• 21:46
  diversified. If I don't know, like all of a sudden the internet just blew up and there was no,
• 21:51
  you couldn't none of us use tech anymore. Yeah, scary. You don't want all your money just in tech.
• 21:56
  Look, I know some people don't like investing in these companies like Nova in order skinny
• 22:00
  elderly because their products have gone mainstream and have become cosmetic. But we have one of
• 22:08
  the biggest pandemics going on epidemics. I don't know the difference, but
• 22:12
  and that's obesity. And it is like killing millions and millions, hundreds of millions of people
• 22:17
  a year. And there is now more obese people in the world than they are hungry, which is like mind boggling.
• 22:24
  And we need to get it under control in terms of the impact that it has on the health care systems,
• 22:30
  on countries, economies, businesses, even like taking leave and absenteeism in the productivity,
• 22:37
  taking that away from workplaces, what that cost, like it's massive. And so this is why these
• 22:45
  products have been doing so well because they're solving a lot of issues, diabetic and obesity
• 22:50
  related issues that are therefore having positive impacts in terms of GDP and productivity and
• 22:56
  health care spend that can go on other diseases and be spent elsewhere and free up space and time for
• 23:03
  you know, other kind of health care related illnesses. So it is it is massive. And I love this
• 23:10
  a little bit. I love this a little bit. And all I will say is that the point here is you may have
• 23:17
  a personal vendetta or a personal issue with the idea of being constantly getting all sorts of
• 23:23
  content about be skinny, I do this, what I ate in a day, bloody, bloody, bloody, and then you see
• 23:28
  all these people, celebrities or not even celebrities, using a weight loss drug that they're
• 23:33
  injecting themselves to be skinny, that is like obviously problematic and I can completely understand
• 23:38
  why that would be confronting and you might want to invest in a business like this. But if you zoom
• 23:43
  out and understand the magnitude of how much obesity is genuinely impacting people and also
• 23:50
  productivity and how much money is being poured into these health care problems, these types of
• 23:55
  drugs are incredibly helpful for people that need them. And the point here is that there is an
• 24:00
  enormous investing opportunity or landscape where this goes beyond the cosmetic, like what you see
• 24:07
  or what you hear or think about was empirical or whatever this drug school. Yeah. And it's like with
• 24:13
  any company invest in right, like let's take the video that we just spoke about, like there is
• 24:18
  indirect impacts of investing in say AI for example, like people don't want to invest in AI because
• 24:25
  the job that's going to impact the impact it has on the on the world in terms of the power that it
• 24:30
  uses, like it's the same with Eli Lilly. Yes, there is parts of this business that you might not like
• 24:37
  and therefore not want to invest in, but like every single business has some degree of something you
• 24:44
  probably don't like about it. And it's like, okay, can I get comfortable with the fact that
• 24:48
  this product or the GLP 1 protein and like what the products are based off is going to save countries
• 24:56
  billions and billions of dollars and save lives or do I not want to invest in it because there's
• 25:02
  a few people that minority that use it for cosmetic purposes and that's kind of what you have to
• 25:07
  balance up. And if you're in the latter camp, that's fine. There's so many other things for
• 25:11
  Western, but like it's just balancing and realizing yes, there's so many positives with this and
• 25:17
  yes, there's some negatives, but like where where are your comfort levels that really? And at all
• 25:20
  honestly, when we first started speaking about this as a as a product as an investing opportunity,
• 25:24
  I was absolutely the most raging bitch about it. Hearing you speak about the nuances and the way
• 25:33
  in which like this is also helping people and like just the more zoomed out holistic world-rounded
• 25:38
  approach to this investment opportunity in general, not just this business, but this as a sector,
• 25:44
  it's not enough for me, you know, I don't look at this and think this is such a hard and fast
• 25:49
  line for me that I would never invest in it because I can now understand the nuance of how this
• 25:54
  can be really positive for a lot of people and like if we take the UK for example, there's research
• 25:59
  that suggests that it spends about 130 billion pounds per year on obesity and overweight-related
• 26:06
  healthcare costs. So it is now started to give away these weight loss drugs that will probably cost
• 26:15
  it billions, but it's going to save it hundreds of billions. But yes, I totally hear you coming from
• 26:20
  there is unfortunately a small minority that ruined it, a majority. I think that yeah, the B in my
• 26:26
  bonnet is more just around the constant pressure that women have to look a certain way and I feel like
• 26:31
  when this is, you know, amplifying a narrative that we should look like walking coat hangers,
• 26:36
  they really hate it. Yeah, no fear. I saw a thing on the morning show this morning and it was
• 26:44
  talking about the budget, which we're going to get to in a second, the UK budget. Not our budget.
• 26:50
  No, no, no, no. With the UK budget, a lady was on there talking about how they wish they had
• 26:56
  put in there or had a bit more, I guess, around women and their quality and whether it's different
• 27:03
  tax rates. Not that it should have been in that budget, but there needs to be a conversation
• 27:08
  around different maybe tax structures for women, or should there be? And I don't know, I haven't
• 27:14
  thought about this enough to have my own view on that, but she was listing all these things that,
• 27:19
  you know, we've talked about it so much on this podcast, like the gender pay gap,
• 27:23
  you know, the fact that we do all this unpaid work and unpaid labour that doesn't get,
• 27:28
  doesn't get included or recognised financially, there's a pink tax which, you know, we pay more
• 27:35
  of a pink teodorant than blue teodorant, that kind of stuff and there was a few men on there that
• 27:38
  what? And we're like, yeah, you don't notice it if it's not targeted you, right? And then she's
• 27:43
  like, and we have to wear makeup if we want to be taken seriously. And this old man was like,
• 27:47
  you don't have to wear makeup and she was like, we do, if we want to be taken seriously,
• 27:52
  in a professional setting, like there are so many statistics that show,
• 27:56
  and we've spoken about this as well in the podcast that, like, unfortunately,
• 28:00
  how you look tends to impact your end capacity and your examinations.
• 28:05
  But like, it was just quite, I guess, confronting that, like, the two men on that table.
• 28:09
  And no idea. No idea. And it's like, well, and fair enough, they probably wouldn't because they
• 28:13
  don't, they're not living and breathing it, but it was just like, yeah, it's kind of plays
• 28:17
  into what you were saying about, like, we are, we are pressured into looking and being a certain
• 28:24
  way. Yeah. That was quite a good segue into the budget as well. Yeah. Well done, Vix, stunning.
• 28:30
  Absolutely stunning. You are really nailing it. I must say I'm really loving this episode.
• 28:34
  What is happening to my boys? Okay, budget. Right. So the UK had before people tune out,
• 28:40
  because you're not in the UK, I would just like to say the reason we're bringing this up is
• 28:44
  because, yes, it's important to what's happening in the UK, but also understanding how a country's
• 28:48
  budget works with relation to who's then in power. What does it mean for you? This is universal.
• 28:55
  So like, we're using the UK budget as an example, but just know this is very relevant regardless
• 29:00
  of where you are in the world. Yes. And every country releases a budget every year. It's like a
• 29:05
  personal budget, you know, you're like, okay, I'm looking at my, what's income, what's coming into
• 29:10
  my bank account and you're like, where are my debts? What are we? What are we? Are we going to spend?
• 29:14
  What do I need to cut back on? What can I spend more on? Where can I get more money coming in?
• 29:19
  Like all of that. And yes, we had the UK's this week. So a few of the key takeaways that I found
• 29:26
  most interesting and like would affect me. So therefore, I think other people might find
• 29:30
  interesting. The biggest takeaway from this budget was everyone was very relieved that there was
• 29:37
  no increase in taxes. There was no increase in the percentage of tax that you will pay.
• 29:44
  So the tax rates did not increase. Most, most countries they progressively go up and up and
• 29:48
  up depending on different levels that you get paid. And in the UK that's, you know, there's a
• 29:53
  certain threshold, you pay zero percent tax, then you pay 20 percent, then you pay 40 percent,
• 29:57
  so on. And the great thing about this budget was that Rachel Reeves came out and she said,
• 30:03
  I'm not going to increase the percentages that you pay in tax. Everyone's like,
• 30:08
  but what they usually do with this budget as well is they move up those thresholds
• 30:15
  to be in line with inflation. Because everyone's salaries go up, you know, most people's salaries
• 30:19
  go up each year. They're either doing more work, they get promoted or inflation. And so those
• 30:24
  bands need to move up. Let's say from 50,000 to 51,000. So, you know, you might pay 20 percent at 51,
• 30:33
  50,000. But then next year, you can get paid 51,000, you still pay 20 percent.
• 30:38
  And I think the biggest thing this took me no shit about two hours to get my head
• 30:41
  around yesterday. The biggest thing with this is every year when inflation goes up, what you,
• 30:50
  so for example, if you're on a 50,000 pound salary, what you can buy the following year,
• 30:55
  just by virtue of inflation going up is less, which is why most businesses, and this is a massive
• 31:00
  hack, and you should absolutely be making short losses happening. Your salaries should match
• 31:04
  inflation. Because if you're on 50,000 pounds, and inflation goes up by 3 percent, but your salary
• 31:10
  stays at 50,000, you're kind of losing 3 percent. And so the whole point of the tax brackets moving
• 31:16
  is if they don't go up, you're actually technically kind of paying more tax.
• 31:21
  Yeah, you're worse off. You're literally, you might be going up a little bit in terms of your
• 31:25
  salaries increase with inflation, but because the tax rates aren't. Yeah, it's kind of confusing,
• 31:30
  but all you really need to know is the fact that these have been frozen, as many people are kind of
• 31:34
  paying more tax, even though the government said we're not raising taxes. And frozen to 30,
• 31:39
  2030. So they're frozen for another. It's a long time. Yeah. I mean, if you get another person
• 31:45
  in power, then they'll probably change. But yeah, it's just, it's a really, it's a sneaky way
• 31:50
  of the government getting more money, but without optically looking like we are paying a higher rate
• 31:57
  in tax. And I think the annoying thing about this is there's a lot of people who understand like,
• 32:01
  there's this stupid phrase, which we're not even going to explain, because you don't need to know,
• 32:05
  it's called fiscal drag whatever. Apparently, this is the thing that it's called. Now,
• 32:10
  when it comes to actually why are you laughing? Because we talked about, we're trying to talk about,
• 32:15
  we're trying to talk about the system, honestly, all of us accept facts, eyes, which is glazing
• 32:19
  over. But the point is, is that if you understand economics in a really deep level and you understand
• 32:25
  what's going on, you would look at this and think, oh, fiscal drag, that's cheeky. We know what
• 32:29
  you're doing. You're actually trying to get more money in taxes. But if you don't understand the
• 32:33
  fact that this is actually kind of going to impact you negatively, like the every day punter like
• 32:38
  me, I would just be like, yay, taxes aren't going up. But actually, it's not ideal. But I also think
• 32:42
  it's like the other side to that is knowing your tax bands. And by that, I mean, knowing
• 32:50
  at what point, at what level, you have to start paying more taxes. And this is every country,
• 32:55
  by the way, is really important. Because, yeah, if you're on a 50,000 pound salary now, for example,
• 33:02
  the mix that you're paying is 20%. And if your boss came to you and goes, look, I'm going to give you
• 33:07
  a salary increase, 52,000, you'd be like, woohoo. But then, yes, it's only that 2,000 pound portion.
• 33:14
  But you jump into a higher tax band. So now you're paying more. So it's just, you could end up
• 33:20
  having less than you expected in your take home pay. And you're like, but I've got to pay rise.
• 33:25
  So I should, you know, like, and so it's just really important to be like, maybe that conversation
• 33:29
  with your boss is like, hey, can I actually get five extra days of leave? Yeah. Can I get,
• 33:33
  can I get that put into my, in my kiwi stable, my pension, instead of getting paid out to me,
• 33:38
  like some countries allow that. So it's just, I have an allowance for, yeah, I don't know,
• 33:42
  I'm trying to think of something. I don't know. Maybe you need a new bike or something. Can I
• 33:45
  travel allowance? Can I get a transport allowance? Can I get any, like, there's just, there's
• 33:48
  other ways to do it. And it's just, it's just being aware that, you know, there are these tax
• 33:54
  bands. And if you're close to one, you might end up paying more tax, even though you get a pay
• 33:58
  rise. So just be aware. Yeah. So there was quite a few things about the other thing that I just
• 34:03
  wanted to highlight quickly is the change to cash Isis. So in the UK, there is this incredible
• 34:10
  vehicle called an Isis. It essentially allows you to put money in there up to 20,000 pounds a year
• 34:16
  and you don't get tax on the interest. So it's a really, really great way, you know, you put in
• 34:21
  20,000, you don't get tax on the interest. And then each year you put another 20,000 and you've
• 34:24
  got that limit. That is being reduced to 12,000, which is actually really good because they're
• 34:28
  doing it to encourage people to put more money into a stock, what is called a stocks and shares
• 34:32
  Isis, which you can invest 20,000 and not get tax on it. So it's essentially like a Trojan horsey
• 34:38
  clever subtle way to try and say you should not need 20,000 pounds sitting in cash. That is not
• 34:45
  a good idea. Yeah. So actually 12,000 pounds, for example, still a lot. That's a lot of money to
• 34:50
  be keeping in cash. We all know the whole point of this podcast is try and encourage you to invest
• 34:54
  your money not just let it sit in the bank. Yeah. This is kind of a subtle way to encourage less
• 35:00
  people to just leave it sitting in cash and actually start investing more. Exactly. And hopefully
• 35:05
  the whole preface is that it will have a positive impact on the UK stock market. But I feel like
• 35:12
  a lot of it will probably go into the US stock market. We'll see. But we'll see. Yeah. Also,
• 35:17
  one of the best things to come out of the budget was like there's so many things now that landlords
• 35:23
  can't do for tenants. Like they can't accept applications that are over the rental price.
• 35:28
  They can't really. Yeah. Oh my god. There's so many people I know I've been trying to get houses
• 35:32
  lately. Yeah. And people are bidding for like, I'll buy you a new couch. I'll buy five times more
• 35:36
  than what you've put on. I mean, there's probably side things they could do. Look, I've got tickets
• 35:39
  to this incredible look at all versus Arsenal game. Oh gosh. You also can't accept more than one
• 35:45
  months rent in advance. So cool. Yeah. When I moved here, I had to pay so much because I didn't have
• 35:50
  New Zealand pay slips and all of that. But and the other thing is that they're getting a lot more
• 35:55
  lenient with pets. Allowing pets. So they have to have like a serious reason for you not to allow
• 36:02
  for them to not allow you to have a pet. That's actually the same in New Zealand. We had someone
• 36:05
  want to move into our house and they had a dog and they made it a thing to highlight. But they
• 36:10
  were also kind of I'm pretty sure now or it's very soon. It's going to be it's not a thing. Yeah.
• 36:15
  You do just need to look at if you are the property owner, what your insurance policies are around
• 36:19
  damage from kids. Yeah. Yeah. Yeah. Because the you know, if a dog's like chewing off a door,
• 36:25
  yeah, it's not ideal. You know, trying the dog. Yeah. I know. But also you're not in the dogs.
• 36:32
  If you do not get our or curfew tea newsletter, we'll put a link in the pocket show
• 36:36
  on us to sign up because there's a really interesting interest rate cut in New Zealand. We'll
• 36:40
  explain what that actually means for you and for your investments and for housing prices and blah, blah, blah, blah.
• 36:44
  Yeah. Thank you so much for listening to the Curve Weekly. Make sure you hit the subscribe button
• 36:49
  to stay up to date with all the many business stock market news. And if you like what you heard,
• 36:54
  we would love a review. Thank you. Yes. We would love a review that if you didn't hate it. Please
• 36:59
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• 37:03
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• 37:07
  week and see you next Monday. Bye. Bye. See you next Tuesday. Wow. See you next Tuesday. I mean
• 37:17
  Monday. No, actually though, new episodes out every Tuesday.
• 37:24
  Okay, quickly, the Curve was created to empower and educate you about investing, but we are not
• 37:29
  financial advisors. Our platform exists for educational purposes only and it doesn't provide
• 37:34
  personalized investing advice for your individual needs and should not be relied upon to make
• 37:38
  an investment or financial decision. And always remember to do your own research before making
• 37:42
  any investment or financial decision. We're here for any knowledge and support you need, but the
• 37:46
  final call is always yours. And thanks for being here. You got this. Yeah, we know you got this.
• 37:52
  Cano, this guy, this guy, this guy, Jacob, I love you. Jacob, I love you. He would just stand there
• 37:57
  and stare at me and I'd be like, make it. I'd just be like, you could take my clothes up with your
• 38:02
  eyes. They blew off. They just absolutely gone up in flames. No clothes. I was sure he would
• 38:06
  off clothing on me anymore. I don't think he would say anything. He wouldn't have to. Like, I would
• 38:10
  do. There's this video of him walking in his suit with like sunglasses on chewing gum. And like,
• 38:15
  honestly, I, I, the things I would do. To that man. Yeah. Holy shit. Okay, we must get back
• 38:24
  on track. Back to finance. Jesus Christ was so off engine. Yes. So in every country there has been
• 38:32
  a lot of things. Can we talk about Jacob a lot of life? I don't want to go next to a budget.
• 38:40
  Sorry. This is going to be so difficult.