The RBA has cut the cash rate by 0.25% to 3.85%, but warns that Trump’s tantrums could still shake the Aussie economy
Monash IVF has warned of an ugly update to its profit guidance after an embryo mix up caused share prices to fall 34%
Netflix has signed a deal with Sesame Workshop to make Netflix the new streaming home of Sesame Street.
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Episode Transcript
This is what the flux. I'm Brett and I'm just then,
and it's Wednesday, the twenty first of a Juzzy Boy.
The Reserve Bank of Australia sat down yesterday and chose
peace with the Australian public with another cash rate cut.
But interestingly, after the last cash rate cut, COMBAK only
saw fourteen percent of its customers reduce their direct debit payments. Interesting,
so it'll be interesting to see if after this rate cut,
(00:26):
Ozzie's take some cash off the table.
Speaker 2 (00:28):
And flux am. We have the cash rate cut all
covered in the plot today, but also in the Flux
app we have a what this cash rate looks like,
what the impact on the housing market might be, and
especially when you overlay it with the five percent home
ownership scheme that the government's rolling out. Make sure to
check out the Flux app if you want to understand
more about the changing face of the property market.
Speaker 1 (00:47):
Three enticing stories today, Juzzy Boy, let's do it for
our first. The RBA has cut the cash rate by
zero point two five percent to three point eight five percent,
but warns that Trump's tantrums could still shape the Australian economy.
Speaker 2 (01:01):
The cash rates Sea Cael that we've all been waiting for.
B Man, so tell me more.
Speaker 1 (01:04):
Well, as we've spoken about many times on the Pod,
the RBA is Australia's central Bank.
Speaker 2 (01:08):
Yeah, it sets the official cash rate to try and
manage inflation as well as driving economic activity and jazzy boy.
Speaker 1 (01:14):
After a pause in April, analysts were very bullish on
a rate cut yep.
Speaker 2 (01:18):
Some were even predicting a jumbo cut of point five percent,
looking at you, Nab.
Speaker 1 (01:22):
But now the RBA came so and conquered with a
cash rate cut of the non jumbo amount of point
two five percent.
Speaker 2 (01:29):
And that takes us to a cash rate of now
three point eight five percent.
Speaker 1 (01:33):
And that's the lowest cash rate we've had in over
two years.
Speaker 2 (01:35):
But be man. Despite for the inflation, the RBA is
still side eyeing the global economy. Yep.
Speaker 1 (01:40):
They want that. They still don't know how the US
is on again off again tariffs will impact the Australian
economy and locally, the RBA is still concerned with a
low unemployment rate.
Speaker 2 (01:49):
And not to forget, Australia's productivity rate has been flatlining,
which is not a good sign for a growing economy interesting.
Speaker 1 (01:56):
So what is the key learning here, Well.
Speaker 2 (01:57):
Nobody really talks about productivity. The ARBA is pretty much obsessed.
Speaker 1 (02:01):
With it because low productivity is a key driver of
higher inflation.
Speaker 2 (02:05):
In simple terms, be man, productivity is how much stuff
we produce per hour of work.
Speaker 1 (02:09):
When the productivity rate of the economy increases, it means
businesses can afford to give staff pay rises without jacking
up prices of their goods and services.
Speaker 2 (02:18):
But when the productivity is flat or goes down, then
businesses can only afford to give pay rises by increasing
prices of their products or services.
Speaker 1 (02:26):
And increased prices leads to growing inflation.
Speaker 2 (02:29):
A big no no in the RBA's eyes.
Speaker 1 (02:31):
And while inflation has slowed down, productivity in Australia has
barely moved in the last five years.
Speaker 2 (02:37):
In fact, being man, in twenty twenty three it actually
fell by three point seven percent. And that is why
the RBA is not getting too.
Speaker 1 (02:43):
Loose with this is just yet, because not all indicators
are looking rosy right now.
Speaker 2 (02:48):
For our second story, monash IVF has warned of an
ugly update to its profit guidance after an embryo mix
up has caused a share price to plummet.
Speaker 1 (02:57):
Clients are taking their baby business lawe. What is the
story here case.
Speaker 2 (03:01):
Monach IVF is the ASX listed group that specializes in
fertility services in Australia. They do everything from IVF to
egg freezing, to genetic testing and a whole lot more.
But Judge Boy earlier this year, monash IVF found that
they had mixed up two clients' embryos, but they only
found out two years after the fact and after a
baby had been delivered.
Speaker 1 (03:21):
Monash iviev reported this as at once off human error
that would not materially impact the company's profit, but.
Speaker 2 (03:27):
When the news got out, clients and investors were shugn.
Speaker 1 (03:30):
Next minute, monash Ivf's share price dropped thirty four percent.
Speaker 2 (03:34):
And now monash IVF warned that their profits are also
expected to drop by more than eleven percent to twenty
seven and a half million dollars.
Speaker 1 (03:41):
Next minute, their shares dropped another twelve percent.
Speaker 2 (03:44):
So what is the key learning here?
Speaker 1 (03:46):
Publicly listed companies have an obligation to disclose any information
that might have a material effect on their share price.
Speaker 2 (03:52):
And material news could be things like changes to a
company structure, changes to senior management, or major cybersecurity breaches.
Speaker 1 (03:59):
Now. In this case, monash IVF discovered the embryo mix
up in mid February.
Speaker 2 (04:03):
But they didn't mention it in their half yearly results,
which happened two weeks later.
Speaker 1 (04:07):
Fast forward to April, the board finally reported the embryo
mix up and they reported that it was not material,
but they.
Speaker 2 (04:12):
Dropping their share price and profit guiden since the news
broke shows otherwise.
Speaker 1 (04:17):
Which begs the question about what company information is actually
considered quote material.
Speaker 2 (04:22):
For a company like monash IVF that relies heavily on
brand reputation and client trust, a single mistake can have
huge consequences.
Speaker 1 (04:30):
And regardless of what they believed is material, the market
had the final say.
Speaker 2 (04:35):
For our third and final story, Netflix has signed a
deal with Sesame Workshop to make Netflix the streamy home
of Sesame Street.
Speaker 1 (04:42):
Elmo is officially packing his bags and heading to the
Big Red n Tell me more.
Speaker 2 (04:48):
Okay, So, Sesame Street is produced by Sesame Workshop, which
is a non profit organization.
Speaker 1 (04:52):
YEP. Sesame Street has been using puppets to teach kids
their ABC's and one two three's and occasional life lessons
from a two meter tall yellow bird.
Speaker 2 (05:02):
In fact, a man. Sesame Street is now shown in
more than one hundred and fifty countries and breaches more
than one hundred and fifty six million kids. So jusey.
Speaker 1 (05:09):
Way back in twenty nineteen, Sesame Street started streaming on
the streaming platform Max Akahbo Max aka Water Brothers Discovery,
but Ben Man.
Speaker 2 (05:18):
Last year, Water Brothers Discovery decided not to renew the deal.
Speaker 1 (05:22):
And for a moment it looked like Cookie Monster might
need to sell his last biscuit. Now b Man, Netflix
has swooped in, and that means Netflix will stream the
upcoming fifty sixth season of Sesame Street, as well as
the library of its classic episodes and Cookie Monster Cookies.
Speaker 2 (05:38):
And be Man. This is all part of Netflix's strategy
to own children's content.
Speaker 1 (05:42):
So what is the Cookie Monster learning here? Judy Boy.
Speaker 2 (05:45):
As families move away from PayTV, streaming platforms are in
a tug of war for toddler attention, and that's because
not only does kids content perform well, but it keeps subscribers.
Paint Get This Kids series, Cocoa Melon and Pepper Pig
some of the most stream shows of twenty twenty five
on Netflix.
Speaker 1 (06:01):
Even ahead of dare I say it Young Shelded, not Young.
Speaker 2 (06:04):
Sheldon and be Man. Streaming platforms love kids content because
it's one of the greatest drivers of subscriber to retention yeap.
Speaker 1 (06:11):
Parents are pretty much willing to pay for anything that
will avoid a nagging kid.
Speaker 2 (06:15):
And be Man. This eight Netflix's first foray into the
kid's content world.
Speaker 1 (06:19):
It already holds the streaming rights to Miss Rachel and
Coco Melon and Judge Boy as you know, it has
the rights to Pepper, Pig and Back.
Speaker 2 (06:25):
In twenty twenty one, it also bought the Golden Ticket
to acquire Roll Dal rights for six hundred and eighty
six million US dollars.
Speaker 1 (06:31):
So by snapping up Sesame Street, Netflix is locking in
the kind of content that keeps family subscribed month after month.
Speaker 2 (06:38):
Because if you control the shows that stop tantrums, you
control the household. Fux Sam, did you know for every
one percent cashtraight cut, the average Australian house increases in
value by nineteen percent. We cover all of that and
a whole lot more. Make sure to download the Flux
app and check it out.
Speaker 1 (06:53):
Thanks for listening, and we'll see you on Friday.
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