This is what the Flux I'm Brandon Justin and it's Monday, the ninth of September, Flux VAM.
Just when we thought the Reserve Bank of Australia could be dropping the cash rat soon, we'll get quite a wake up call. Late last week, the RBA Governor Michelle Bullet warned it if the economy stays as it is, rates won't go down. But if the economy starts firing again, well then it may be time for a cash rate rise.
Give us some good news, Michelle, Just one piece.
Of good news in the meantime, flux am, before the rates go down. There are many ways to save cash, including reducing some of your UNNW subscriptions, and we have it all covered in the Flux app. You can track all your subscriptions in under thirty seconds, which ones are costing you big bucks and which ones you're not even using to Make sure to download the Flux app to check out all your subscriptions in one place.
Three budget stories today, Jossy boy, let's do it for our first Star Entertainment, the major casino operator has put chairs in a trading halt as it looks for ways to.
S Geez Star Entertainment really rolling the dice on this one, b Man. So what is going on here.
Well, chase boys.
Star Entertainment is one of the largest casino operators in Australia, which and casinos in Sydney and the Gold Coast, and don't forget bris Vegas where it just opened a brand spanking new casino.
The cost around three point six billion bucks to bill.
Well ever budget as well, be Man. But that is the positive stuff for Star. But things have been anything but positive over the past few years.
Yep.
Star Entertainment's being accused of let's see here, money laundering. Cash has a bit of fraud in here. There's links to organized crime gang.
Not exactly the kind of jackpot that you want to hit.
On top of that, it's new South Wales casino license was temporarily suspended and it was fined one hundred million bucks.
But now, be Man, after all of this was supposedly behind Star Entertainment. They've now gone into a trading halt.
And that's because Star failed to provide its accounts to the ASX on time.
And after this value be Man, Star came out and warned that it's currently reviewing its financial and its liquidity position.
And by the way, it needs to restructure the company as soon as possible and find three hundred million bucks in cash to avoid collapse.
There to say, they are basically down to their very last chips.
They're begging the New South Wales and Queensland governments to spot them some cash before they're completely tapped out.
And it's not just a bad handbe man. They are staring at a major liquidity crisis. Bang.
So what's the key learning here?
A liquidity crisis happens when a company can't meet its short term financial obligations.
It's kind of like being out of chips at the table and unable to buy back in right now.
Star can't pay its bills because it's short on cash, or it doesn't have enough assets that can be quickly turned into.
Cash and does it.
A liquidity crisis like this often leads to panic as lenders and investors they lose confidence in the company's ability to just pay its bills.
In Starr's case, they're facing a three hundred million dollar cash crunch.
And this type of crisis can snowball very quickly. It already wants to write down the value of its assets by about one point four billion bucks.
So be man. If they don't get more money or convince the government to push back their tax payments, they could be in some real trouble.
Yep.
For our second story, Ticketmaster's owner Live Nation is under investigation after being criticized for inflating the price of concert tickets in the UK, and this very same issue could soon be coming to Australia.
Oasis reforming equals Internet broken, Bman, So tell me more about this story.
Store my thunder their juzzy boys.
So this one starts with UK rock band Oasis, which were one of the biggest rock bands of the nineteen.
Ninety with the two bros, a Liam and Noel Gallagher.
In two thousand and nine they had a fallout of epic proportions that left fans heartbroken.
Now Beman, fast forward nearly fifteen years and the unthinkable has happened. They're getting the band back together for a UK and Ireland tour.
Now.
Last week the tickets for the concert went on sale on Ticketmaster.
Bands weighed up ten hours for one hundred and thirty five pound ticket.
But when they got to the ticket page, the seats were more than three hundred and fifty pounds because tickets were in high demand. That's a new pricing model that would allow live nations company Ticketmaster to charge more for tickets when demands sir, but.
Low and behold all the tickets still sold and Oasis and Ticketmaster made a whole lot of bank.
The juzzy boy.
This has brought into q this new dynamic pricing ticketing for concerts.
Been rolled up for concerts in the US, then the UK, and it's been announced that it will roll out in Australia soon too.
And regulators in the UK and also around the world and now investigating whether dynamic pricing should actually be legal.
So what is the key learning here?
Dynamic pricing is the idea that prices of a product or service can vary throughout the day or week depending on the fluctuating demand and be man. This allows companies like Ticketmaster to maximize revenue by charging higher prices during peak demand periods.
And offering lower prices when demand is lower.
For example, tickets on a Saturday night concert in a major city might be priced a lot higher than a midweek event in a small town.
But does a boy.
Although this is kind of new for entertainment dynamic pricing isn't actually a new concept for some other industries.
Airlines have been doing it for decades. Given Live Nation CEO has warned it will also come to Australia. It's shined the light on the laws around it.
Yep, right now in Australia, there's nothing illegal about a business doing dynamic prices.
As long as it doesn't misrepresent what its price is.
And while not all music artists are getting into the dynamic pricing vibes, it is expected that we might start to see it more and more.
For our third and final story, Birbury is set to be dropped from London's foot Sea hundred index after fifteen years, as its share price plummets to its lowest price since twenty ten.
Those trench coats just aren't hitting like they used to. Juzzy boy, what's the story right here, right now.
Babe man Well. Berbury is the British luxury fashion brand that was founded in the eighteen fifties and listed on the stock market in two thousand and five.
But over the last few years Birbury has been battling with weak demand.
Fact its share price has dropped over seventy six percent since April.
Last year, and now Birbery is set to be dropped from the foot Sea one hundred ie the Financial Times Stock Exchange.
That's an index of the top one hundred companies listed in the UK by market value.
Now Berbery has been on that list for fifteen years in a row until now.
How did it drop out? Now?
Very simple, juzzy boy, its market cap dropped too low to be kept in the list.
While this sounds like a little bit of a symbolic drop, there are many consequences that go more than.
Just being symbolic. So what is the key learning here?
Off the index ladder can often mean tumbling down the market.
Here's the thing.
When the company is included on an index like the Footsy one hundred or the ASEX two hundred, it gains more than just the title.
For me through this well it does a boy.
Being on an index usually gives a company access to a new form of investors and investment funds.
The ETFs mutual funds, which often track major indexes and hold the stocks in there. And this could push Burbery's already damage share price even further down. Be Man, I just uncovered that I am paying sixty five dollars a month for a gym subscription that I barely even.
Use and the only not good for a guy running a financial education company.
Luckily, we've built the tool to identify subscriptions, track them, and then give you the ability to counsel them as well. It is all in the Bluck Subscription track up to make sure you download the plucks out and check it all out.
Thanks for listening and we'll see you on Wednesday.