Latest / What the Flux / Telstra cuts jobs... again | CSL vs Trump | MYOB's plans to take on the big banks

Transcript

Telstra cuts jobs... again | CSL vs Trump | MYOB's plans to take on the big banks · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brettan, I'm justin and it's Frida. Eighty eleventh of July.
• 0:09
  Speaker 1: Boy, it is official. There is a company on this
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  Speaker 1: earth that is now worth four trillion US dollars. It's
• 0:15
  Speaker 1: not Google, not Apple, not Microsoft. It's in Nvidia cracked
• 0:18
  Speaker 1: over the four trillion US dollar mark yesterday and has
• 0:20
  Speaker 1: become the most valuable company in the whole why the universe, from.
• 0:24
  Speaker 2: A little gaming company to the largest very impressive yeap
• 0:27
  Speaker 2: flexand quick Sticks is back this week. Fifty bucks in
• 0:30
  Speaker 2: your pocket if you are the first person to answer
• 0:32
  Speaker 2: three business and finance questions correctly in the Flux out
• 0:35
  Speaker 2: It'll come at a random time today to your phone
• 0:38
  Speaker 2: to make sure you have the Flux app downloaded and
• 0:40
  Speaker 2: your notications turned on. If you want to win this.
• 0:41
  Speaker 1: Week, you can three swanlike stories today. Dozey boy, let's
• 0:45
  Speaker 1: do it for our first. Telstra is planning another mass
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  Speaker 1: jobcat of over five hundred jobs as it pushes to
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  Speaker 1: hit its new twenty thirty strategy with AI.
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  Speaker 2: We knew it was coming to be man ai replacing human jobs,
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  Speaker 2: so tell me more well.
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  Speaker 1: Telstra was founded in nine teen oh one, a little
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  Speaker 1: earlier than AI was invented, and Telster remains Australia's largest
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  Speaker 1: telco provider.
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  Speaker 2: Get this, b Man. Telster provides more than twenty four
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  Speaker 2: million retail services across Australia.
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  Speaker 1: That'd be Ozzi's using Telstra to text to call doom
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  Speaker 1: scroll on the Internet.
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  Speaker 2: That is a pretty big responsibility, particularly the doom scrolling.
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  Speaker 1: Yeah, that's why they employ about thirty one thousand full
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  Speaker 1: time workers around the world.
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  Speaker 2: Recently, b Man Ulstra has been swinging the old corporate
• 1:24
  Speaker 2: Act well.
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  Speaker 1: Last year, Telstra cut twenty eight hundred jobs to save
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  Speaker 1: the company about three hundred and fifty million bucks.
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  Speaker 2: It was all part of their T twenty five strategy
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  Speaker 2: that was set years ago. But now be Man Telster
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  Speaker 2: CEO has announced a new strategy called Connected Future thirty.
• 1:38
  Speaker 2: You have to have a buzzy name like that. You
• 1:40
  Speaker 2: can't not exactly and be man. This new strategy aims
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  Speaker 2: to raise Telster's and your returns from eight percent to
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  Speaker 2: ten percent by twenty thirty.
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  Speaker 1: Step one, they're going to cut another five hundred.
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  Speaker 2: Jobs without supposedly dropping connectivity or customer service standards.
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  Speaker 1: How do they plan to do this?
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  Speaker 2: Well, obviously, by implementing more AI in the business.
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  Speaker 1: Interesting, So what is the key learning here?
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  Speaker 2: The theory AI would one day replace human workers has
• 2:02
  Speaker 2: been floating around for decades, but now we're starting to
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  Speaker 2: see some real tangible examples.
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  Speaker 1: Jasi Boyd this is one of the first examples of
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  Speaker 1: a large Australian company to openly adopt AI as a
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  Speaker 1: replacement for jobs.
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  Speaker 2: And be Man this could just be the beginning.
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  Speaker 1: According to a report from the Social Policy Group, up
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  Speaker 1: to one in three Australian workers could be at risk
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  Speaker 1: of job loss due to AI by twenty thirty.
• 2:23
  Speaker 2: And be Man or companies tend to tiptoe around the
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  Speaker 2: topic of AI to avoid public backlash. Shareholders seem to
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  Speaker 2: have a very different outlook on the AI adoption.
• 2:31
  Speaker 1: As of this week, Telstra shares have jumped over twenty
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  Speaker 1: one percent since the start of the.
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  Speaker 2: Year wow, and over thirty percent over the past twelve.
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  Speaker 1: Months, making it the tenth best performing company on the
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  Speaker 1: ASX and the best in the telco sector. So be Man,
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  Speaker 1: we're now entering the era where AI isn't just theory,
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  Speaker 1: it's becoming a core part of some major company strategies.
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  Speaker 1: For our second story, Donald Trump's new threat of tariffs
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  Speaker 1: on overseas pharmaceutical companies has put Australia's farmer industry right
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  Speaker 1: in the firing line.
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  Speaker 2: CSL investors having Trump fueled no ightmnes right now, be man,
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  Speaker 2: so tell me what's going on.
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  Speaker 1: Well, you might remember, Josie Way, we spoke about Trump's
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  Speaker 1: global tariffs in mid April.
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  Speaker 2: At the time, these enormous tariffs led to an economic meltdown.
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  Speaker 1: With US markets dropping more than seven percent at the time.
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  Speaker 2: But be man, Trump delayed those tariffs by ninety days.
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  Speaker 2: And guess what, It's now getting close to ninety days
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  Speaker 2: later and tariffs have read their ugly heads once again.
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  Speaker 1: Well, you see, Trump said he's fed up with countries
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  Speaker 1: quote free riding off American drug innovations.
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  Speaker 2: So this time around, Trump's threatened to slap two hundred
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  Speaker 2: percent tariffs on imported pharmaceuticals.
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  Speaker 1: After an eighteen month grace period.
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  Speaker 2: And be man, that is pretty scary for Australia's major
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  Speaker 2: farmer companies because the US buys more than a third
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  Speaker 2: of all ossie farmer exports.
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  Speaker 1: In fact, Ozzie farmer and biotech companies like CSL are
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  Speaker 1: starting to panic and.
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  Speaker 2: Begging the government to do something about this asap. So
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  Speaker 2: what is the key landing here?
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  Speaker 1: When you rely on one country to buy a large
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  Speaker 1: chunk of your products, their politics can become your problem.
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  Speaker 2: O be Man. Australia's pharmaceutical sector is highly exposed to
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  Speaker 2: the US.
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  Speaker 1: Get this one. Roughly thirty eight percent of Australia's exports
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  Speaker 1: go to the US and that.
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  Speaker 2: Means even a small policy shift in the US can
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  Speaker 2: have an outsized impact here.
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  Speaker 1: In this case, it ain't a small policy shift. It's
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  Speaker 1: a ginormous two hundred percent of tariff.
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  Speaker 2: And the Farmers Guild of Australia reckon these monster teriffs
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  Speaker 2: could crumble the whole farmer industry in Australia if this
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  Speaker 2: isn't sorted out.
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  Speaker 1: And might I remind you that pharmaceuticals is Australia's second
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  Speaker 1: biggest export to the US behind Ozzie Beef, so b Man.
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  Speaker 2: The more you rely on selling in a particular geography,
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  Speaker 2: the more exposed you are to their politics and their policy.
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  Speaker 1: And so even if this is sorted it's a reminder
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  Speaker 1: for Australian farmer companies to diversify pronto.
• 4:34
  Speaker 2: For our third and final story, MOYOB, the accounting software company,
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  Speaker 2: is trying to take on the big banks in the
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  Speaker 2: business banking market.
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  Speaker 1: Well Zero squashed moyob in the accounting space, so now
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  Speaker 1: moyob is picking on another industry.
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  Speaker 2: Tell me more. MIYOB is a well known accounting and
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  Speaker 2: business software company founded in Australia in nineteen ninety one.
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  Speaker 1: Fun fact, it actually stands for mind your own business Thing.
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  Speaker 2: And when MYOB started it was battling out against you
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  Speaker 2: Quickens the cd ROM accounting dominance.
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  Speaker 1: Since then Zero entered the accounting cloud market and really
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  Speaker 1: shook things up. Yeah, well MOOB is battling with Zero
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  Speaker 1: for accounting dominance. It also has its eyes on another price. Yes,
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  Speaker 1: MOOB has announced plans to compete with the big banks
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  Speaker 1: via a business banking product.
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  Speaker 2: They've launched a bank account in partnership with Great Southern
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  Speaker 2: Bank because apparently the majority of Australia's one point six
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  Speaker 2: million sole traders don't use a business bank account.
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  Speaker 1: That's according to market research firm Canta and be Man.
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  Speaker 2: It's hard to know how many subscribers MOOB has today
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  Speaker 2: because it's private. It had nearly six hundred and thirty
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  Speaker 2: thousand back in twenty eighteen.
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  Speaker 1: And this puts them head on with your CBA's, your nabs,
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  Speaker 1: your ain z's, and YU west pas for business customers.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Owning the customer relationship has become the holy grail in
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  Speaker 1: financial services.
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  Speaker 2: You see d man Moob already has access to small
• 5:49
  Speaker 2: business finances through its software, so offering a bank account
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  Speaker 2: may just be the natural next step.
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  Speaker 1: And this type of expansion is becoming more and more
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  Speaker 1: common in fintech.
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  Speaker 2: Companies like Square which is now Blow and PayPal. They
• 6:01
  Speaker 2: started in payments, but they've expanded across the whole financial
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  Speaker 2: services industry.
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  Speaker 1: They've gone into lending, into general banking, even into tax tool.
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  Speaker 2: In fact, the man PayPal's small business lending arm has
• 6:11
  Speaker 2: originated more than thirty billion US dollars in loans since
• 6:14
  Speaker 2: twenty thirteen.
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  Speaker 1: And while there is some risk involved, the rewards can
• 6:17
  Speaker 1: be enormous. Yeah, it would mean a deeper relationship with
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  Speaker 1: customers and more control over their financial journey and way
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  Speaker 1: bigger profits.
• 6:25
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• 6:27
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• 6:29
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• 6:31
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• 6:33
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• 6:35
  Speaker 2: first to answer correctly, the fifty buck is all yours.
• 6:38
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• 6:39
  Speaker 1: Thanks for listening, and we'll see you on Monday.