Latest / What the Flux / Fortescue's hydrogen runs out of gas | YouTube hits record viewership | Tesla's worst quarter in a decade

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Fortescue's hydrogen runs out of gas | YouTube hits record viewership | Tesla's worst quarter in a decade · What the Flux

• 0:05
  Speaker 1: This is what the Flux I'm brand aren't justin and
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  Speaker 1: the Flux.
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  Speaker 2: Out three riveting stories today, Juzzy boy, let's get into
• 0:53
  Speaker 2: a b Man for our first ford skew, the Wa
• 0:56
  Speaker 2: based mining giant has smashed its export records, but its
• 1:00
  Speaker 2: hydrogen dreams have run out of gas.
• 1:03
  Speaker 1: Seems are looking pretty rock solid for Fortescue b Man literally,
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  Speaker 1: so let's dig in.
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  Speaker 2: Fortescue is one of Australia's biggest three iron ore miners,
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  Speaker 2: behind BHP and Rio Tinto.
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  Speaker 1: It was founded by Andrew Tweet Forests back in two
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  Speaker 1: thousand and three and it's grown into a thirty eight
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  Speaker 1: billion dollar company off the back of rocks and Minerals
• 1:20
  Speaker 1: and Jusei Boy.
• 1:21
  Speaker 2: The growth of Fordescue has largely been off the back
• 1:23
  Speaker 2: of China's enormous demand for steel, but be Man.
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  Speaker 1: Fordescu had a record breaking year this year.
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  Speaker 2: It chipped over one hundred ninety eight million tons of
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  Speaker 2: iron ore in the year to June, and.
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  Speaker 1: That was up more than three and a half percent
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  Speaker 1: from last year.
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  Speaker 2: And this means they've smashed their previous record of one
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  Speaker 2: hundred ninety two million tons in twenty twenty.
• 1:41
  Speaker 1: Three and the Man. After this news, Fordescue share price
• 1:43
  Speaker 1: jumped over four percent.
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  Speaker 2: But it wasn't all shiny rocks and celebrations juzyboy especially
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  Speaker 2: in Fortescue's clean energy division.
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  Speaker 1: YEP. Fortescu worn that it's going to close its two
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  Speaker 1: hydrogen facilities.
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  Speaker 2: That'll mean a two hundred and twenty seven million pre
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  Speaker 2: tax right down and the man, what is the reason
• 1:59
  Speaker 2: for this? Well, US hydrogen subsidies aren't making it as
• 2:02
  Speaker 2: viable as previously expected.
• 2:05
  Speaker 1: So what is the key learning here?
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  Speaker 2: Green dreams often need green lights from the government.
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  Speaker 1: You see, b Man. Government policy can make or break
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  Speaker 1: early stage industries like green hydrogen.
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  Speaker 2: That's because governments tend to offer subsidies and tax incentives
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  Speaker 2: to get large scale projects off the ground in those
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  Speaker 2: early loss making years. For its US hydrogen project, Fortescue
• 2:24
  Speaker 2: blame the collapse on policy changes under the Trump administration,
• 2:27
  Speaker 2: which rolled back green energy support and Jazi Boyd. Despite
• 2:30
  Speaker 2: the hydrogen hype, the demand for hydrogen has been deropt
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  Speaker 2: interesting YEP.
• 2:34
  Speaker 1: According to the International Energy Agency Data, global green hydrogen
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  Speaker 1: demand fell around fifteen percent year over year in twenty
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  Speaker 1: twenty four.
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  Speaker 2: The challenge for miners is that green hydrogen production is
• 2:44
  Speaker 2: more than double the cost of dirtier gray hydrogen production.
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  Speaker 2: So b Man, unless governments invest more into the industry,
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  Speaker 2: companies like Fortescue will probably stick to what they know best,
• 2:53
  Speaker 2: which is doing stuff out of the ground and shipping
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  Speaker 2: it to China.
• 2:57
  Speaker 1: For our second story, YouTube has smashed viewership records and
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  Speaker 1: ad revenue as it competes head on with old school
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  Speaker 1: TV channels.
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  Speaker 2: YouTube's come a long way since Charlie bit my finger.
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  Speaker 2: So tell me more.
• 3:08
  Speaker 1: Okay. So YouTube is owned by Alphabet, which also owns Google,
• 3:11
  Speaker 1: Google Cloud, Android, Bitbit, Gemini, way Mow, and plenty more.
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  Speaker 1: And they then Google bought YouTube back in two thousand
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  Speaker 1: and six for just one point sixty five billion US dollars.
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  Speaker 2: And now YouTube is making nearly eight times that amount
• 3:23
  Speaker 2: in advertising revenue each and every year.
• 3:26
  Speaker 1: That's right. YouTube's AD revenue jumped to nine point eight
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  Speaker 1: billion US dollars in the past year, which was up
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  Speaker 1: thirteen percent.
• 3:31
  Speaker 2: But even scarier than that, juzzy boy, is that YouTube
• 3:34
  Speaker 2: isn't just an online video streaming platform anymore.
• 3:36
  Speaker 1: It's considered more of a fully fledged TV network because
• 3:39
  Speaker 1: of its ability to be connected to your TV.
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  Speaker 2: In fact, YouTube now accounts for twelve point eight percent
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  Speaker 2: of all TV viewership.
• 3:45
  Speaker 1: That's the high share any platform has ever hit.
• 3:47
  Speaker 2: According to Nielsen and juzzy Boit, this is just another
• 3:50
  Speaker 2: reminder of how connected TV has crushed old school TV
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  Speaker 2: networks and will probably continue to do so RIP Network ten.
• 3:58
  Speaker 1: So what is the key landing here?
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  Speaker 2: Connected TV or CTV is the new battleground for advertisers,
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  Speaker 2: and YouTube has already won the first few rounds of
• 4:06
  Speaker 2: this battle.
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  Speaker 1: You see, b Man. Unlike traditional TV ads which are
• 4:08
  Speaker 1: often hard to measure, CTV ads are delivered via internet
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  Speaker 1: connected TVs.
• 4:13
  Speaker 2: That means they can target their audience a whole lot better.
• 4:16
  Speaker 1: They know what that viewers watched previously as well as
• 4:18
  Speaker 1: their interests.
• 4:19
  Speaker 2: They can track data on the performance of the ads
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  Speaker 2: as well.
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  Speaker 1: Yeah, they're not guessing that the audience of the block
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  Speaker 1: is middle aged men and women in a two story
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  Speaker 1: house in metro melbourneor Sydney. In fact, by Man YouTube
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  Speaker 1: claims CTV ads on its platform drove over one billion
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  Speaker 1: conversions in the past twelve months.
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  Speaker 2: So jazy boy YouTube isn't just an online video platform
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  Speaker 2: no more.
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  Speaker 1: It's a TV network, a search engine, a music service
• 4:39
  Speaker 1: and an ad tech beast all in.
• 4:41
  Speaker 2: One, and clearly it is working.
• 4:43
  Speaker 1: For our third and final story, Tesla has suffered its
• 4:46
  Speaker 1: steepest drop in quarterly revenue in over a decade. After
• 4:49
  Speaker 1: its struggle with strong competition and less government support.
• 4:52
  Speaker 2: Tesla slamming on the brakes and reversing what is going
• 4:55
  Speaker 2: on here?
• 4:55
  Speaker 1: Okay, so we know Tesla the og electric car giant
• 4:58
  Speaker 1: and launched its first electric vehicle two thousand and eight.
• 5:00
  Speaker 2: And while Tesla once dominated the EV space, its competitors
• 5:03
  Speaker 2: have come thick and fast.
• 5:05
  Speaker 1: As the pure electric vehicle competitors like Polestar and x
• 5:08
  Speaker 1: Peg and Rivian.
• 5:09
  Speaker 2: And of course you've got your traditional legacy car makers
• 5:12
  Speaker 2: also building plenty of electric cars, your Toyotas, You're Ford,
• 5:15
  Speaker 2: your Volvos, BMW's and the rest. And with more competition
• 5:18
  Speaker 2: and less government subsidies, Tesla is really feeling the electric squeeze.
• 5:22
  Speaker 1: It's revenue fell twelve percent. Well, it's net income fell
• 5:24
  Speaker 1: sixteen percent in the second quarter, and.
• 5:26
  Speaker 2: That's the biggest drop in quarterly revenue for over ten years.
• 5:29
  Speaker 1: The man Elon Musk isn't interested in talking about what
• 5:31
  Speaker 1: his business is today. He's focused on the next big thing, Robotaxi.
• 5:35
  Speaker 2: Yep, He's got plans to expand Tesla's Robotaxi network to
• 5:39
  Speaker 2: cover half of the US by the end of this year.
• 5:41
  Speaker 1: Nothing like distracting your investors with the future bets or
• 5:44
  Speaker 1: the core businesses on fire?
• 5:45
  Speaker 2: And why is it on fire? Juzzy boy?
• 5:47
  Speaker 1: Number one competition and number two the enormous drop in
• 5:50
  Speaker 1: carbon credits which is really hitting their bottom line.
• 5:52
  Speaker 2: So what's the key learning here?
• 5:54
  Speaker 1: Carbon credits allow polluting companies to purchase credits that effectively
• 5:57
  Speaker 1: offset their pollution.
• 5:59
  Speaker 2: And you can buy carbon credits from cleaner companies Tesla yep.
• 6:02
  Speaker 2: Tesla has relied on selling these carbon credits to traditional
• 6:05
  Speaker 2: carmakers that still produce petrol vehicles and be man at.
• 6:08
  Speaker 1: Tesla's historically made hundreds of millions each quarter from selling
• 6:12
  Speaker 1: these credits.
• 6:12
  Speaker 2: But thanks to new laws, those juicy subsidies are drying up.
• 6:15
  Speaker 1: Get this, Tesla earned four hundred and thirty nine million
• 6:18
  Speaker 1: US dollars in the last quarter from other carmakers hating
• 6:21
  Speaker 1: them for carbon credits.
• 6:22
  Speaker 2: And while that sounds quite huge, there's less than half
• 6:24
  Speaker 2: of what reported in the same quarter here ago.
• 6:27
  Speaker 1: And be Man. These carbon credits were Tesla's financial safety buffer.
• 6:30
  Speaker 2: But juicy boy, as these credits continue to decline, investors
• 6:34
  Speaker 2: have realized that Tesla has been too dependent on non
• 6:36
  Speaker 2: core revenue streams.
• 6:37
  Speaker 1: Flux Sam, do you self a favor art and have
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• 6:50
  Speaker 2: Thanks for listening and we'll see you on Monday.