Latest / What the Flux / Coco & Eve's $100m payday | Google's historic $23b acquisition | Nvidia vs Trump

Transcript

Coco & Eve's $100m payday | Google's historic $23b acquisition | Nvidia vs Trump · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm bred and I'm justin and it's Friday, the nineteenth
• 0:09
  Speaker 2: of July.
• 0:09
  Speaker 1: Josie Boy, it's fair to say share markets are in
• 0:12
  Speaker 1: their high confidence era. The ASX two hundred hit a
• 0:15
  Speaker 1: new world record on Wednesday, cracking the eight thousand mark
• 0:20
  Speaker 1: for the first time. And Josey Boy, that's after tech,
• 0:22
  Speaker 1: financial services and property industries saw a big jarm. Not
• 0:26
  Speaker 1: to mention, almost everyone reckons the US will cut interest
• 0:29
  Speaker 1: rates in September.
• 0:30
  Speaker 2: Not the same for Australia though, be Man, Blucks maam.
• 0:33
  Speaker 2: We can give you a very good start to the
• 0:34
  Speaker 2: weekend with our weekly quiz a quick Sticks. We're giving
• 0:36
  Speaker 2: a fifty bucks to the person who get three questions
• 0:39
  Speaker 2: correct in the Flux app today, So make sure you
• 0:41
  Speaker 2: download the app and had your notifications turned.
• 0:43
  Speaker 1: On three riveting stories today, Josy boy, let's do it
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  Speaker 1: for our first An Australian viral beauty brand, Coco and Eve,
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  Speaker 1: has raised one hundred million dollars from a US private
• 0:52
  Speaker 1: equity business, which will now take a majority steak in
• 0:55
  Speaker 1: the company.
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  Speaker 2: Be Man, I've got to be honest, I haven't heard
• 0:58
  Speaker 2: of this one, So tell me what's happening here.
• 0:59
  Speaker 1: Well. Coco and Eve is a beauty brand that was
• 1:02
  Speaker 1: founded in Melbourne. We're talking hair products, self tanning products,
• 1:05
  Speaker 1: shampoos as well. But dose Boy, We're not talking your
• 1:08
  Speaker 1: run of the mill eight dollars a bottle dove.
• 1:10
  Speaker 2: Shampoos ohn O my brand. We're talking shampoos selling for
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  Speaker 2: forty dollars a pop. Liquid gold some call it now.
• 1:16
  Speaker 1: Over the past six years, Coco and Eve has managed
• 1:18
  Speaker 1: to grow their brand rapidly, mainly through TikTok and instat.
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  Speaker 2: We're talking millions of followers and thousands of TikTok users
• 1:25
  Speaker 2: doing product reviews of the brand. And now b Man,
• 1:27
  Speaker 2: a Texan private equity company called Gauge Capital, has invested
• 1:31
  Speaker 2: one hundred million baccaronis in Coco and E.
• 1:34
  Speaker 1: And while we don't know the valuation, we do know
• 1:36
  Speaker 1: that they took a majority steak in Coco.
• 1:39
  Speaker 2: And E and be Man. This major investment continues a
• 1:42
  Speaker 2: range of Australian beauty brand being recognized on the global stage.
• 1:46
  Speaker 1: So what's the key learning here?
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  Speaker 2: Move over Korea and Japan. Australia has become the new
• 1:50
  Speaker 2: beauty industry hotspot for years.
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  Speaker 1: K beauty in Korea or Jay Beauty in Japan. They've
• 1:56
  Speaker 1: been the leaders in the skincare world, but Australian beauty
• 1:59
  Speaker 1: has become the next in line. Can everyone please get
• 2:02
  Speaker 1: around a beauty the man.
• 2:04
  Speaker 2: Australian beauty products supposedly lean into that natural and sunkissed
• 2:08
  Speaker 2: look and they don't mind dropping words like Bondi in
• 2:10
  Speaker 2: their name either, and it's.
• 2:11
  Speaker 1: Fair to say it's working. Juzzy boy yep.
• 2:13
  Speaker 2: Over the past couple of years, we've seen Bondai sand
• 2:15
  Speaker 2: salted Japan's Cow Corporation for four hundred and fifty mil
• 2:18
  Speaker 2: Esop was acquired by Laourel for three point seven billion,
• 2:22
  Speaker 2: and now co Co and Eve drop one hundred million
• 2:24
  Speaker 2: dollar investment as well.
• 2:25
  Speaker 1: The global beauty industry is expected to reach five hundred
• 2:28
  Speaker 1: and eighty billion dollars by twenty twenty seven.
• 2:30
  Speaker 2: So there might be a few other Ossi beauty brands
• 2:32
  Speaker 2: to make big announcements in the future as well.
• 2:34
  Speaker 1: For our second story, Google is looking to make its
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  Speaker 1: biggest acquisition ever after it announced late stage talks to
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  Speaker 1: acquire a cybersecurity company for twenty three billion US dollars.
• 2:44
  Speaker 2: That's like acquiring quantas and Seek and JB, Highlight and
• 2:47
  Speaker 2: Medibank in one foul swoop. So tell me all about
• 2:50
  Speaker 2: this one.
• 2:50
  Speaker 1: Well, we know Google and its parent company, Alphabet is
• 2:53
  Speaker 1: an absolute behemoth, valued it over two point twenty five
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  Speaker 1: trillion US dollars.
• 2:58
  Speaker 2: Yep, between its Google Search, It's Android operating system, Gmail,
• 3:01
  Speaker 2: g Drive, YouTube, Google Maps, it pretty much controls our
• 3:03
  Speaker 2: deck Lives.
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  Speaker 1: And now Alphabet, which is Google's parent company, has announced
• 3:07
  Speaker 1: it is in late stage talks to acquire a company
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  Speaker 1: named Wiz for a casual twenty three billion US dollars.
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  Speaker 2: Okay, so who is this Wiz you speak about?
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  Speaker 1: Well, Jusi boy, it's an Israeli cybersecurity company that's only
• 3:19
  Speaker 1: been around for just over four years.
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  Speaker 2: But it's fair to say it's made a serious impact
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  Speaker 2: in the cybersecurity space so far. It generated one hundred
• 3:26
  Speaker 2: million dollars in annual occurring revenue in twenty twenty two.
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  Speaker 1: Then three hundred and fifty million dollars in annual occurring
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  Speaker 1: revenue by twenty twenty four, and be man.
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  Speaker 2: This acquisition of Wiz would help Google grow its cloud
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  Speaker 2: business and take some pressure offers advertising business. So what
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  Speaker 2: is the key learning here?
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  Speaker 1: Cutting edge technologies often come at the steepest of costs.
• 3:47
  Speaker 2: You say, be man. Most of the hot new generative
• 3:49
  Speaker 2: tools are run on the cloud.
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  Speaker 1: And that means many corporate clients looking to use AI
• 3:54
  Speaker 1: are panicking about the security in the sky.
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  Speaker 2: Could legal documents and sales deals be lead for everyone
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  Speaker 2: to see? So Google's acquisition of wiz would become a
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  Speaker 2: strong selling point for Google in its strategy to become
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  Speaker 2: a cloud leader. Because let's be honest. Right now, Google
• 4:09
  Speaker 2: Cloud plays third fiddle in the cloud computing.
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  Speaker 1: Space, behind both Amazon with thirty one percent of the
• 4:14
  Speaker 1: market and.
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  Speaker 2: Then Microsoft with twenty five percent of the market.
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  Speaker 1: Google Cloud trailing all the way behind it just eleven
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  Speaker 1: percent market share.
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  Speaker 2: And the global cloud infrastructure market is currently generating more
• 4:24
  Speaker 2: than three hundred billion dollars in revenue peranna.
• 4:27
  Speaker 1: And growing twenty one percent per year. Might I add, so.
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  Speaker 2: It's fair to say it is a space that Google
• 4:32
  Speaker 2: wants to own.
• 4:33
  Speaker 1: For our third and final story, in Vidia and other
• 4:36
  Speaker 1: AI chip makers have seen their share prices plummet after
• 4:40
  Speaker 1: Donald Trump's latest comments on the chip industry in Taiwan.
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  Speaker 2: Tell you, right, if anyone's going to shake the stock market,
• 4:46
  Speaker 2: you can bet it'll be Donald Trump, So what is
• 4:48
  Speaker 2: the story here?
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  Speaker 1: In Vidia is the computer chip designing company that was
• 4:51
  Speaker 1: founded in nineteen ninety three and has recently become the
• 4:54
  Speaker 1: backbone of the AI industry.
• 4:56
  Speaker 2: In the last twelve months, in Video share price has
• 4:58
  Speaker 2: jumped almost one hundred and fifty.
• 5:00
  Speaker 1: And for a while it held the title of the
• 5:02
  Speaker 1: world's most valuable company, all thanks to this AI boom.
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  Speaker 2: But now be Man in Video and other AI chip
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  Speaker 2: makers in Taiwan have seen the share prices drop between
• 5:10
  Speaker 2: three and eleven percent.
• 5:12
  Speaker 1: Now you pretty clued in. What's the reason here?
• 5:14
  Speaker 2: Well, Donald Trump made comments about Taiwan, one of the
• 5:17
  Speaker 2: world's biggest AI chip exporters.
• 5:19
  Speaker 1: And what were these comments?
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  Speaker 2: Juzzy boy, he said, Taiwan took our chip business from US.
• 5:24
  Speaker 2: I mean, how stupid are we?
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  Speaker 1: Next minute, in Vidia's share price drops six point six percent,
• 5:28
  Speaker 1: wiping over two hundred billion US dollars off its market cap.
• 5:32
  Speaker 2: And be men As unbeatable as the AI industry looks,
• 5:35
  Speaker 2: it turns out just a couple of choice words from
• 5:37
  Speaker 2: Trump sends the whole industry into a frenzy crazy So
• 5:40
  Speaker 2: what is the key learning here? No industry is bulletproof
• 5:43
  Speaker 2: when it interacts with politics.
• 5:45
  Speaker 1: We know, Juzzy Boy, that comments by politicians have the
• 5:48
  Speaker 1: power to shift market expectations and influence industries.
• 5:52
  Speaker 2: And we know as well that investors react very quickly
• 5:55
  Speaker 2: to how they think political decisions might impact their investments.
• 5:58
  Speaker 1: And also fair to say that reaction are heightened in
• 6:01
  Speaker 1: the lead up to an election.
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  Speaker 2: Yeah, and given AI such a hot topic right now,
• 6:05
  Speaker 2: it's also one of the most exposed industries when it
• 6:07
  Speaker 2: comes to geopolitical conflicts.
• 6:09
  Speaker 1: And Johnson boyit this isn't the first time Old Trumpell
• 6:11
  Speaker 1: Stiltskin has impacted the share market with his comments. Yep.
• 6:14
  Speaker 2: According to research by Northeastern University, when Trump is tweeted
• 6:18
  Speaker 2: about a company, there's a short term increase in trading
• 6:20
  Speaker 2: volume for that company stock.
• 6:22
  Speaker 1: Whether that be a selloff or a doubling down on
• 6:25
  Speaker 1: that investment.
• 6:26
  Speaker 2: But thankfully for companies like in video, this time, companies
• 6:29
  Speaker 2: generally see volumes and stock prices return to their pre
• 6:32
  Speaker 2: Trump tweet levels. Fox Sam, if you want to start
• 6:34
  Speaker 2: your weekend on a high with fifty bucks in your
• 6:36
  Speaker 2: front pocket, there is one simple thing to do. Make
• 6:39
  Speaker 2: sure you've downloaded the Flux app and you've got your
• 6:41
  Speaker 2: notifications turned on to win quick six today.
• 6:43
  Speaker 1: Thanks for listening, and we'll see you on Monday.