Woolworths staff's costly strike | Nvidia under China probe | RBA holds cash rates… again.

This is what no Flux.

I'm Brett and I'm justin and it's Wednesday, the eleventh of December.

Juzzy Boy AMZ Bank has announced a new CEO will replace Shane Elliott after nine years, and interestingly, the a Z chair has compared this new CEO to picking up a star soccer player on the transfer market. Apparently he's worked in Europe, Latin America and Asia, so he certainly traveled the world like a sta footballer. Now he's just got to turn his footwork into some winning goals for a Z's a bottom.

Line Ronaldo two point zero they call him.

Uh huh.

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This month three colorful stories Today Juzzy Boy, Let's do it for our first. Woolworts has finally come to an agreement with its warehouse staff after a seventeen day strike which left stores empty and cost them millions in sales.

This is reminding me of Covidos all over again. Be manned, So tell me what's going on here.

Well, Juzzy Boy, we know Woolworth's as the largest supermarket group in Australia with thirty seven percent market share.

They're well ahead of their bitter archrival Coals, who has twenty eight percent market.

Share, and it's growing our rival Audi, but the man.

A few weeks ago, fifteen hundred woolworth staff went on strike.

And this led to seventeen days of industrial action at four distribution centers in Victoria and New South Wales.

That means no shelves in the warehouse were getting packed and no shelves were packed onto trucks. The goat stores and as a result, Juzzy Boy supermarket shelves were left empty. And not only supermarket shells, liquor stores like Dan Murphy's also had their shelves empty too.

But now Woolies has finally come to an agreement with their warehouse staff.

But be man They've warned the seventeen day hiatus without stocked shells has cost them a mozza.

We are talking one hundred and forty million dollars in lost revenue and.

It's expected to hurt their expected earnings by sixty million baccarinas.

And the bigger winner here, of course is the little red quote themselves coals.

So what is the key learning here?

Forcing customers to change their regular habits is like gifting an own goal to your competitor.

Very soccer theme today, you see a man. Many Ossies are loyal to their supermarket.

Go Big Red or Go Fresh food Cream.

In fact, be man. A recent survey show sixty two percent of shoppers who shopped at Woolies in month one were still shopping with Woolly six months later for their main shop.

That is according to research think tank E sixty one.

And the Man. Interestingly, price wasn't the biggest influence.

Nope, it was all about the convenience as well as unconscious habit of sticking to what you know you know Breddy's in L three Deli section is back, lair h and Josi wait. Woolies has disrupted the habits of their loyal customers.

Which can not only prompt them to change now, but adjust their habits into the future.

In fact, the unstocked shelves at Woolies is expected to increase Coals's earnings by two point three percent this financial year, according to Baron Joey.

So Woolies will be hoping that this drama is behind them so they can focus on winning back their habit forming customers. For our second story, China has opened an antitrust investigation into US chip maker in Nvidia, the world's largest provider of AI pros. Really heading up in the AARs b man, So tell me.

More some background, Josie boy. The US government knows just how important it is for US companies to produce computer chips.

Yep. The Biden administration has pumped billions of dollars into US companies like Intel because they want to boost local production of chippy's and reduce America's reliance on China for chippies. But now be man in VideA, the American chip maker is facing anti trust investigation from China, and of course this means things are spicing up between the US and China.

And here's where things get juicy. The Chinese government believes this acquisition could violate China's anti monopoly laws.

Next minute, in Vidia share price was down two point six percent.

And this is just the latest escalation of a real growing battle for AI dominance between the US and China. So what is the key learning here?

Those who control the best AI can control the world.

Think about it in many ways, in video is the face of the AI tech revolution.

Get this. In Vidia currently holds between seventy and ninety five percent of the market share for AI.

Chips, so hurting in Vidia could harm its ambitions to continue to power AI around the world.

And that's exactly what China is doing.

See, the US is pretty concerned that China could use AI to gain a military advantage over the US.

In fact, recently the US imposed restrictions on the sale of AI chips to China.

So this move by China could be seen as a retaliation.

Either way, Dann. What's quite hilarious here is that the US itself is also reportedly investigating in VideA of the potential antitrust violation. For our third and final story, the Reserve Bank of Australia has kept cash rates on hold for the ninth time in a row in their final meeting for twenty twenty four, the RBA must have some emotional attachments to the number four point three five so tell me more well.

The Reserve Bank of Australia is obviously Australia's central bank.

They're roles pretty much ensure the economic prosperity of the people of.

Australia, to ensure the stability of the Australian currency.

And to maintain full employment in Australia.

And Jazi Boy, the most powerful lever that the RBA has is its ability to move the cash rate up or down down and the man.

After cranking up the cash rate from point one percent to four point three five percent in less than eighteen months, the RBA is now having a bit of a breather, yep.

In its final meeting of twenty twenty four, the RBA has decided to pause the cash rate once again at four point three five percent.

This is the ninth month in a row that the rates have been paused.

And Jessy Boy, While the RBA is responsible for ensuring full employment in the economy, they currently reckon that employment is too hot right now.

So what is the key learning here?

While low unemployment is generally positive for an economy. It's actually possible for employment to be over full. Yeah, sometimes having too many people working can cause problems as well, and this is called over full employment.

Let's play this outbe man. When nearly everyone in the whole country has a job, businesses might struggle to find workers.

And then to attract staff.

They are for high wages, and the catch is that the business has often raised their prices to cover those extra costs, which can make everything more expensive, and this is when inflation kicks in again.

The idea is to find a balance lots of but not so many that inflation spirals out of control.

It's a pretty tricky juggling act, and the RBA doesn't reckon that the economy's healthy enough right now to drop the cash rate. The man I applied for a new credit card last month and my credits cored dropped by more than fourteen points. Wow, could not leave that personally now fluxed down. If you want to see if your credit score went up, if it went down, or just stayed the same, there is only one place to go.

Thanks for listening, and we'll see you on Friday.